Net sales for the year ended December 31, 2008 were $45,913,957 compared to $12,132,710 for the year ended December 31, 2007, an increase of $33,781,247, or approximately 278.4%. The primary reason for the increase was due to the Company's solar energy division, which started in February 2008 and generated sales of $30,999,962. Additionally, the 55% acquisition on October 14, 2008 of Shanghai Intech-Detron Electric and Electronic Company Limited ("Detron") generated sales of $1,720,965 for the Company in the fourth quarter. Detron is a power supply factory in Shanghai, China, with designing and R&D capabilities. Detron generated sales of $1,720,965 for the Company in the fourth quarter.
For the year ended December 31, 2008, gross profits were $6,167,671 (13.4% of sales) compared to $3,782,089 in 2007 (31% of sales). The decline of gross profits as a percentage of sales (17.6 percentage points) occurred because the Company utilized more sub-contractors for the production of its solar modules, along with softness in the price of solar modules. It is expected that gross margins will improve as the Company continues its transition to becoming a direct manufacturer for its solar module products and as the newly established factory is now fully operational. As well, the outlook for solar modules margins will improve as the raw material necessary for the production of modules are expected to decline.
Net profit for the year ended December 31, 2008 was $1,459,875 compared to $575,674 for the year ended December 31, 2007. The increase of $884,201, or 153.6%, was the result of higher sales from the Company's solar division. Earnings per share were $0.44 for the full year ended 2008 compared to $0.28 per share in 2007.
Mr. Jimmy Wang, CEO of Worldwide Energy and Manufacturing, stated: "We are very pleased to announce the best year end result in our company's history. Our Solar Energy division is performing beyond expectations and with our new solar factory and new solar contracts, we expect triple-digit growth both in revenue and net income in 2009. We are projecting $100 million in revenues and $5 million in net income for 2009."
He continued, "Already we have $52 million in backlog solar orders for 2009. Our new solar factory in Ningbo, China has the capacity to generate $225 million in revenue. Our gross margins and ultimately our net margins will increase substantially as we will manufacture all solar modules in our own factory. Our strong financial performance clearly demonstrates that the company has successfully made the transition into the renewable energy market as well as maintaining strength in its other contract manufacturing business. We have successful laid the foundation in 2008 to provide explosive growth in 2009."
Balance Sheet
As of December 31, 2008, the current assets of Worldwide were $14,905,221 compared to current assets as of December 31, 2007 of $8,210,711. This represents an increase of $6,694,510 or approximately 44.9%. The increase in current assets was primarily the result of an increase in cash, accounts receivable, and inventory. The Company's cash increased by $2,980,651; largely as a result of the Company's sales in June 2008 of 1,055,103 shares of its common stock. As well, the Company had additional subscriptions for the sale of an aggregate of $252,027, or 56,007 shares of common stock. In addition, accounts receivable increased by 1,515,482, or 31.6%, as a result of the Company's sales growth. Accounts receivable were $4,790,506 for the year ended December 31, 2008 compared to $3,275,024 for the year ended December 31, 2007. The last major factor contributing to the increase in current assets was the increase in inventory of $1,421,617. Inventory was $3,754,765 for the year ended December 31, 2008 compared to $2,333,148 for the year ended December 31, 2007. Inventory increased as a result of the establishment in December of 2008 of the Ningbo Solar factory and the acquisition of Detron in October of 2008.
Current liabilities at December 31, 2008 totaled $6,622,731 compared with $4,447,946 at December 31, 2007. This represents an increase of $2,174,785 or 48.9%. The increase in current liabilities was due to an increase in accounts payable of $946,936, or 38.6%, as the result of the Company's growth. Accounts payables were $3,400,253 in December of 2008 compared to accounts payable of $2,453,317 in December of 2007. The other major contributor to the increase in current liabilities was liabilities due to our recent acquisition of Detron in October of 2008, which amounted to $1,243,024. The Company's current ratio improved to 2.25 to 1 for the period ended December 31, 2008 compared to 1.85 to 1 at 2007 year end.
Total assets were $19,092,295 for the year ended December 31, 2008 compared to $8,762,841 for the year ended December 31, 2007. The increase of $10,329,454, or approximately 117.9%, was the result of the following factors: 1) Sale of unregistered securities for $4,597,587; 2) the acquisition of Detron and the establishment of the new solar factory in Ningbo, China, which resulted in increases in property plant and equipment of $808,045; 3) Property, Plant and equipment totaled $1,353,539 in the year ended December 31, 2008 compared to $545,494 in December of 2007; 4) increase in inventory and accounts receivable due to the Company's growth in 2008; and, 5) the purchase of the AmeriSolar brand name and technology.
Conference Call The call information follows: Date: April 14, 2009 Time: 4:15 p.m. Eastern Daylight Time Dial-in number for US/Canada: (800) 762-8795 or (480) 248-5081 for International calls
A replay of the call will be available for two weeks from 7:15 p.m. EDT April 14, 2009 until 11:59 p.m. EDT on April 28, 2009. The number for the replay is (800) 406-7325, or (303) 590-3030 for international calls; the passcode for the replay is 4054928. In addition, a recording of the call will be available via the company's website at http://www.wwmusa.com for one year.
About Worldwide Energy and Manufacturing USA, Inc.
Worldwide Energy and Manufacturing USA, Inc. ("Worldwide"), headquartered in South San Francisco, California, is a 15-year-old engineering-oriented firm specializing in PV panel, mechanical, electronics and fiber optic products manufacturing. The company's worldwide customer base includes the industries of solar energy, wireless telecommunications, aerospace, automobiles and medical equipment. Subsidiaries include Worldwide Energy and Manufacturing Ningbo Co., Ltd, Shanghai Intech Electro Mechanical Products Co. Ltd., Shanghai Intech Electronics Manufacturing Co. Ltd. and Shanghai Intech Precision Mechanical Products Manufacturing Co. Ltd., and Shanghai Intech-Detron Electric and Electronic Company Limited located in Shanghai and Ningbo, China.
For further information on Worldwide Energy and Manufacturing USA, Inc., please visit http://www.wwmusa.com. You may register to receive Worldwide Energy and Manufacturing USA, Inc.'s future press releases or request to be added to the Company's distribution list by contacting John Ballard.
Forward-looking statements:
The above news release contains forward-looking statements. The statements contained in this document that are not statements of historical fact, including but not limited to, statements identified by the use of terms such as "anticipate," "appear," "believe," "could," "estimate," "expect," "hope," "indicate," "intend," "likely," "may," "might," "plan," "potential," "project," "seek," "should," "will," "would," and other variations or negative expressions of these terms, including statements related to expected market trends and the Company's performance, are all "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 and involve a number of risks and uncertainties. These statements are based on assumptions that management believes are reasonable based on currently available information, and include statements regarding the intent, belief or current expectations of the Company and its management. Prospective investors are cautioned that any such forward-looking statements are not guarantees of future performances, and are subject to a wide range of external factors, uncertainties, business risks, and other risks identified in filings made by the company with the Securities and Exchange Commission. Actual results may differ materially from those indicated by such forward-looking statements. The Company expressly disclaims any obligation or undertaking to update or revise any forward-looking statement contained herein to reflect any change in the company's expectations with regard thereto or any change in events, conditions or circumstances upon which any statement is based.
WORLDWIDE ENERGY AND MANUFACTURING USA, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
December 31 December 31
2008 2007
------------ ------------
ASSETS
Current assets:
Cash and cash equivalents $ 5,092,476 $ 2,111,825
Accounts receivables, net of allowances of
$45,634 4,790,506 3,275,024
Notes receivables 269,507 -
Inventories 3,754,765 2,333,148
Income tax receivable - 82,131
Advances to suppliers 99,824 260,540
Related parties receivables 446,373 30,422
Prepaid and other current assets 451,770 117,621
------------ ------------
Total current assets 14,905,221 8,210,711
Deposits paid for investment 1,724,976 -
Property, plant and equipment, net 1,353,539 545,494
Intangible assets 1,101,000 -
Other assets 7,559 6,636
------------ ------------
Total assets $ 19,092,295 $ 8,762,841
============ ============
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 3,400,253 $ 2,453,317
Lines of credit - 1,758,584
Accrued expenses 867,291 156,524
Tax payable 147,165 78,637
Due to related parties 1,243,024 -
Customer deposits 964,998 -
Current portion of long-term debt (note 10) - 884
------------ ------------
Total current liabilities 6,622,731 4,447,946
Non-current liabilities
Long term loan 937,075 -
Loan payable to stockholders 60,024 498,812
------------ ------------
Total non-current liabilities 997,099 498,812
------------ ------------
Total liabilities 7,619,830 4,946,758
Minority interest in subsidiary 612,639 -
Stockholders' equity
Common stock (No Par Value: 100,000,000 shares
authorized; 3,493,512 shares issued and
outstanding) 6,108,379 270,746
Retained earnings 4,259,533 3,250,112
Accumulated other comprehensive income 491,914 295,225
------------ ------------
Total stockholders' equity 10,859,826 3,816,083
------------ ------------
Total liabilities and stockholders' equity $ 19,092,295 $ 8,762,841
============ ============
WORLDWIDE ENERGY AND MANUFACTURING USA, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME AND
COMPREHENSIVE INCOME
For The Year Ended
December 31
2008 2007
------------ ------------
Revenue
Regular sales, net of returns of $0 in 2007 and
$0 in 2006 $ 45,913,957 $ 12,132,710
Cost of goods sold 39,746,286 8,350,621
------------ ------------
Gross profit 6,167,671 3,782,089
Operating Expenses
Other selling, general and administrative
expenses 3,832,363 2,769,847
Management and professional fees paid to
shareholders (Note 13) 306,000 210,000
Stock based compensation 128,597 -
Depreciation 122,923 106,480
------------ ------------
Total operating expenses 4,389,883 3,086,327
------------ ------------
Net operating income 1,777,788 695,762
Other Income (expenses)
Interest income 21,995 12,548
Interest expenses (120,038) (79,544)
Interest expense paid to shareholders (Note
13) (27,284) (17,371)
Other income 114,057 254,265
Other expenses (243,765) -
Dividend income 242,770
Exchange loss (364,067) (355,712)
Gain on disposal 138,582 -
------------ ------------
Total other expenses (237,750) (185,814)
------------ ------------
Income from continuing operations before income
taxes 1,540,038 509,948
Income taxes (expense) /benefit (67,320) 65,726
------------ ------------
Income from continuing operations before
minority interest 1,472,718 575,674
Loss share by minority interest (15,843) -
------------ ------------
Income from continuing operations $ 1,456,875 $ 575,674
Income from discontinued operations, net of
tax 2,385
------------ ------------
Net income 1,459,260 575,674
Other comprehensive income
Foreign currency translation 196,689 135,610
------------ ------------
Comprehensive income $ 1,655,949 $ 711,284
============ ============
Earnings per share
Continuing operations $ 0.44 $ 0.28
============ ============
Discontinued operations $ 0.00 $ 0.00
============ ============
Weighted average shares outstanding 3,334,473 2,035,495
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