2015 Q1 Form 10-Q Financial Statement

#000114420415031045 Filed on May 15, 2015

View on sec.gov

Income Statement

Concept 2015 Q1 2014 Q4 2014 Q1
Revenue $1.181M $3.690M $1.749M
YoY Change -32.47% 136.54% 34.68%
Cost Of Revenue $894.5K $3.600M $1.343M
YoY Change -33.4% 179.07% 51.32%
Gross Profit $286.5K $90.00K $405.8K
YoY Change -29.38% -67.86% -1.27%
Gross Profit Margin 24.26% 2.44% 23.2%
Selling, General & Admin $282.3K $650.0K $410.6K
YoY Change -31.24% 51.16% 31.14%
% of Gross Profit 98.52% 722.22% 101.18%
Research & Development
YoY Change
% of Gross Profit
Depreciation & Amortization $215.6K $210.0K $192.8K
YoY Change 11.84% 0.0% 3.91%
% of Gross Profit 75.25% 233.33% 47.52%
Operating Expenses $282.3K $650.0K $410.6K
YoY Change -31.24% 51.16% 31.14%
Operating Profit $4.242K -$560.0K -$4.807K
YoY Change -188.25% 273.33% -104.91%
Interest Expense $101.9K -$70.00K $104.9K
YoY Change -2.82% 16.67% 3.55%
% of Operating Profit 2402.24%
Other Income/Expense, Net -$90.09K $180.0K -$104.6K
YoY Change -13.9% 51.6%
Pretax Income -$85.84K -$460.0K -$109.4K
YoY Change -21.56% 119.05% -479.07%
Income Tax $208.00 $0.00 $294.00
% Of Pretax Income
Net Earnings -$86.05K -$460.0K -$109.7K
YoY Change -21.58% 109.09% -1223.75%
Net Earnings / Revenue -7.29% -12.47% -6.27%
Basic Earnings Per Share -$0.02 -$0.02
Diluted Earnings Per Share -$0.02 -$80.42K -$0.02
COMMON SHARES
Basic Shares Outstanding 5.719M shares 5.719M shares 5.619M shares
Diluted Shares Outstanding 5.719M shares 5.619M shares

Balance Sheet

Concept 2015 Q1 2014 Q4 2014 Q1
SHORT-TERM ASSETS
Cash & Short-Term Investments $260.0K $1.300M $630.0K
YoY Change -58.73% 27.45% -52.27%
Cash & Equivalents $260.9K $1.304M $628.0K
Short-Term Investments
Other Short-Term Assets $1.320M $2.810M $3.060M
YoY Change -56.86% -8.47% 72.88%
Inventory $6.410M $5.623M $2.976M
Prepaid Expenses $141.1K
Receivables $8.020M $8.352M $5.815M
Other Receivables $0.00 $0.00 $0.00
Total Short-Term Assets $16.01M $18.84M $13.07M
YoY Change 22.52% 50.8% -1.15%
LONG-TERM ASSETS
Property, Plant & Equipment $15.10M $14.04M $14.41M
YoY Change 4.81% -4.58% -44.72%
Goodwill
YoY Change
Intangibles
YoY Change
Long-Term Investments
YoY Change
Other Assets
YoY Change
Total Long-Term Assets $29.62M $29.47M $29.73M
YoY Change -0.37% -2.38% 2.04%
TOTAL ASSETS
Total Short-Term Assets $16.01M $18.84M $13.07M
Total Long-Term Assets $29.62M $29.47M $29.73M
Total Assets $45.63M $48.30M $42.80M
YoY Change 6.62% 13.19% 1.05%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $4.580M $5.810M $1.520M
YoY Change 201.32% 433.03% -16.94%
Accrued Expenses
YoY Change
Deferred Revenue
YoY Change
Short-Term Debt $6.548M $8.450M $6.951M
YoY Change -5.81% 23.01% -15.13%
Long-Term Debt Due
YoY Change
Total Short-Term Liabilities $14.14M $16.97M $11.24M
YoY Change 25.8% 56.98% -0.97%
LONG-TERM LIABILITIES
Long-Term Debt $0.00 $0.00 $0.00
YoY Change
Other Long-Term Liabilities
YoY Change
Total Long-Term Liabilities $0.00 $0.00 $0.00
YoY Change
TOTAL LIABILITIES
Total Short-Term Liabilities $14.14M $16.97M $11.24M
Total Long-Term Liabilities $0.00 $0.00 $0.00
Total Liabilities $14.14M $16.97M $11.24M
YoY Change 25.8% 56.98% -0.97%
SHAREHOLDERS EQUITY
Retained Earnings
YoY Change
Common Stock $9.893M $9.893M $9.703M
YoY Change 1.96% 1.96%
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity $31.49M $31.33M $31.56M
YoY Change
Total Liabilities & Shareholders Equity $45.63M $48.30M $42.80M
YoY Change 6.61% 13.19% 1.04%

Cashflow Statement

Concept 2015 Q1 2014 Q4 2014 Q1
OPERATING ACTIVITIES
Net Income -$86.05K -$460.0K -$109.7K
YoY Change -21.58% 109.09% -1223.75%
Depreciation, Depletion And Amortization $215.6K $210.0K $192.8K
YoY Change 11.84% 0.0% 3.91%
Cash From Operating Activities -$870.0K -$340.0K -$530.0K
YoY Change 64.15% -141.98% -30.26%
INVESTING ACTIVITIES
Capital Expenditures $174.1K -$40.00K $1.173K
YoY Change 14745.78% -66.67%
Acquisitions
YoY Change
Other Investing Activities $0.00 $0.00
YoY Change -100.0%
Cash From Investing Activities -$170.0K -$40.00K $0.00
YoY Change -63.64% -100.0%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities 0.000 980.0K 140.0K
YoY Change -100.0% -227.27% -114.89%
NET CHANGE
Cash From Operating Activities -870.0K -340.0K -530.0K
Cash From Investing Activities -170.0K -40.00K 0.000
Cash From Financing Activities 0.000 980.0K 140.0K
Net Change In Cash -1.040M 600.0K -390.0K
YoY Change 166.67% -957.14% -77.84%
FREE CASH FLOW
Cash From Operating Activities -$870.0K -$340.0K -$530.0K
Capital Expenditures $174.1K -$40.00K $1.173K
Free Cash Flow -$1.044M -$300.0K -$531.2K
YoY Change 96.57% -132.26% -30.11%

Facts In Submission

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0 USD
CY2014Q1 us-gaap Interest Paid
InterestPaid
82355 USD
CY2015Q1 us-gaap Interest Paid
InterestPaid
79403 USD
CY2014Q1 nfec Income Before Income Taxes
IncomeBeforeIncomeTaxes
8391 USD
CY2015Q1 nfec Income Before Income Taxes
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-48843 USD
CY2014Q1 us-gaap Effective Income Tax Rate Reconciliation At Federal Statutory Income Tax Rate
EffectiveIncomeTaxRateReconciliationAtFederalStatutoryIncomeTaxRate
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CY2014Q1 us-gaap Income Tax Reconciliation Income Tax Expense Benefit At Federal Statutory Income Tax Rate
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2098 USD
CY2015Q1 us-gaap Income Tax Reconciliation Income Tax Expense Benefit At Federal Statutory Income Tax Rate
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-12211 USD
CY2014Q1 us-gaap Income Tax Reconciliation Nondeductible Expense
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-1084 USD
CY2015Q1 us-gaap Income Tax Reconciliation Nondeductible Expense
IncomeTaxReconciliationNondeductibleExpense
12419 USD
CY2014Q1 us-gaap Income Tax Reconciliation Other Adjustments
IncomeTaxReconciliationOtherAdjustments
-1084 USD
CY2015Q1 us-gaap Income Tax Reconciliation Other Adjustments
IncomeTaxReconciliationOtherAdjustments
0 USD
CY2014Q1 us-gaap Assets
Assets
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CY2014Q1 nfec Expenditures For Long Lived Assets
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CY2015Q1 nfec Expenditures For Long Lived Assets
ExpendituresForLongLivedAssets
174141 USD
CY2015Q1 nfec Accounts And Retention Receivable Gross
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CY2014Q4 nfec Accounts And Retention Receivable Gross
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CY2015Q1 us-gaap Allowance For Doubtful Accounts Receivable
AllowanceForDoubtfulAccountsReceivable
358883 USD
CY2015Q1 nfec Percentage Of Accounts Receivable Recovered
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0.14 pure
CY2015Q1 us-gaap Accrued Salaries Current
AccruedSalariesCurrent
132737 USD
CY2014Q4 us-gaap Accrued Salaries Current
AccruedSalariesCurrent
13387 USD
CY2014Q4 us-gaap Allowance For Doubtful Accounts Receivable
AllowanceForDoubtfulAccountsReceivable
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CY2015Q1 nfec Accounts And Retention Receivable Net
AccountsAndRetentionReceivableNet
8015052 USD
CY2014Q4 nfec Accounts And Retention Receivable Net
AccountsAndRetentionReceivableNet
9095375 USD
CY2015Q1 us-gaap Accounts Receivable Gross Current
AccountsReceivableGrossCurrent
7592503 USD
CY2015Q1 us-gaap Basis Of Accounting
BasisOfAccounting
<div style="MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif "> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0in 0in 0pt"> </div> <table style="clear:both;FONT-SIZE: 10pt" border="0" cellspacing="0" cellpadding="0"> <tr> <td style="BORDER-BOTTOM: #d4d0c8; BORDER-LEFT: #d4d0c8; PADDING-BOTTOM: 0in; BACKGROUND-COLOR: transparent; PADDING-LEFT: 0in; WIDTH: 0.3pt; PADDING-RIGHT: 0in; BORDER-TOP: #d4d0c8; BORDER-RIGHT: #d4d0c8; PADDING-TOP: 0in" valign="top" width="0"></td> <td style="BORDER-BOTTOM: #d4d0c8; BORDER-LEFT: #d4d0c8; PADDING-BOTTOM: 0in; BACKGROUND-COLOR: transparent; PADDING-LEFT: 0in; WIDTH: 1in; PADDING-RIGHT: 0in; BORDER-TOP: #d4d0c8; BORDER-RIGHT: #d4d0c8; PADDING-TOP: 0in" valign="top" width="96"> <div style="CLEAR:both;MARGIN: 0in 0in 0pt"><b><font style="FONT-SIZE: 10pt"><font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt"> </font>NOTE-1</font></b></div> </td> <td style="BORDER-BOTTOM: #d4d0c8; BORDER-LEFT: #d4d0c8; PADDING-BOTTOM: 0in; BACKGROUND-COLOR: transparent; PADDING-LEFT: 0in; PADDING-RIGHT: 0in; BORDER-TOP: #d4d0c8; BORDER-RIGHT: #d4d0c8; PADDING-TOP: 0in" valign="top"> <div style="CLEAR:both;MARGIN: 0in 0in 0pt" align="justify"><b> <font style="FONT-SIZE: 10pt">BASIS OF PRESENTATION</font></b></div> </td> </tr> </table> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0in 0in 0pt" align="justify"><font style="FONT-SIZE: 10pt">&#160;</font></div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0in 0in 0pt" align="justify"><font style="FONT-SIZE: 10pt">The accompanying unaudited condensed consolidated financial statements have been prepared by management in accordance with both accounting principles generally accepted in the United States (&#8220;GAAP&#8221;), and the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Certain information and note disclosures normally included in audited financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted pursuant to those rules and regulations, although the Company believes that the disclosures made are adequate to make the information not misleading.</font></div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0in 0in 0pt" align="justify"><font style="FONT-SIZE: 10pt">&#160;</font></div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0in 0in 0pt" align="justify"><font style="FONT-SIZE: 10pt">In the opinion of management, the consolidated balance sheet as of December 31, 2014 which has been derived from audited financial statements and these unaudited condensed consolidated financial statements reflect all normal and recurring adjustments considered necessary to state fairly the results for the periods presented. The results for the period ended March 31, 2015 are not necessarily indicative of the results to be expected for the entire fiscal year ending December 31, 2015 or for any future period.</font></div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0in 0in 0pt" align="justify"><font style="FONT-SIZE: 10pt">&#160;</font></div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0in 0in 0pt" align="justify"><font style="FONT-SIZE: 10pt">These unaudited condensed consolidated financial statements and notes thereto should be read in conjunction with the Management&#8217;s Discussion and the audited financial statements and notes thereto included in the Annual Report on Form 10-K for the year ended December 31, 2014.</font></div> </div><table border="0" style="width:100%; table-layout:fixed;" cellspacing="0" cellpadding="0"><tr><td></td></tr></table>
CY2015Q1 us-gaap Nature Of Operations
NatureOfOperations
<div style="MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif "> <table style="clear:both;FONT-SIZE: 10pt" border="0" cellspacing="0" cellpadding="0"> <tr> <td style="BORDER-BOTTOM: #d4d0c8; BORDER-LEFT: #d4d0c8; PADDING-BOTTOM: 0in; BACKGROUND-COLOR: transparent; PADDING-LEFT: 0in; WIDTH: 0.3pt; PADDING-RIGHT: 0in; BORDER-TOP: #d4d0c8; BORDER-RIGHT: #d4d0c8; PADDING-TOP: 0in" valign="top" width="0"></td> <td style="BORDER-BOTTOM: #d4d0c8; BORDER-LEFT: #d4d0c8; PADDING-BOTTOM: 0in; BACKGROUND-COLOR: transparent; PADDING-LEFT: 0in; WIDTH: 1in; PADDING-RIGHT: 0in; BORDER-TOP: #d4d0c8; BORDER-RIGHT: #d4d0c8; PADDING-TOP: 0in" valign="top" width="96"> <div style="CLEAR:both;MARGIN: 0in 0in 0pt"><strong><font style="FONT-SIZE: 10pt">NOTE-2</font></strong></div> </td> <td style="BORDER-BOTTOM: #d4d0c8; BORDER-LEFT: #d4d0c8; PADDING-BOTTOM: 0in; BACKGROUND-COLOR: transparent; PADDING-LEFT: 0in; PADDING-RIGHT: 0in; BORDER-TOP: #d4d0c8; BORDER-RIGHT: #d4d0c8; PADDING-TOP: 0in" valign="top"> <div style="CLEAR:both;MARGIN: 0in 0in 0pt" align="justify"> <strong><font style="FONT-SIZE: 10pt">ORGANIZATION AND BUSINESS BACKGROUND</font></strong></div> </td> </tr> </table> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;TEXT-INDENT: -57.25pt; MARGIN: 0in 0in 0pt 57.25pt" align="justify"><strong><font style="FONT-SIZE: 10pt"> &#160;</font></strong></div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0in 0in 0pt" align="justify"><font style="FONT-SIZE: 10pt">NF Energy Saving Corporation (the &#8220;Company&#8221; or &#8220;NFEC&#8221;) was incorporated in the State of Delaware in the name of Galli Process, Inc. on October 31, 2000. On February 7, 2002, the Company changed its name to &#8220;Global Broadcast Group, Inc.&#8221; On November 12, 2004, the Company changed its name to &#8220;Diagnostic Corporation of America.&#8221; On March 15, 2007, the Company changed its name to &#8220;NF Energy Saving Corporation of America.&#8221; On August 24, 2009, the Company further changed its name to &#8220;NF Energy Saving Corporation.&#8221;</font></div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0in 0in 0pt" align="justify"><font style="FONT-SIZE: 10pt">&#160;</font></div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0in 0in 0pt" align="justify"><font style="FONT-SIZE: 10pt">The Company, through its subsidiaries, mainly engages in the production of heavy industrial components and products such as valves and the provision of technical service and re-engineering projects in the energy saving related industry in the People&#8217;s Republic of China (the &#8220;PRC&#8221;). 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Ltd (&#8220;Nengfa Energy&#8221;)</div> </td> <td style="TEXT-ALIGN: left; FONT-STYLE: normal; FONT-FAMILY: Times New Roman; BACKGROUND: #ffffff; FONT-SIZE: 10pt; VERTICAL-ALIGN: top; FONT-WEIGHT: 400" width="1%"> <div>&#160;</div> </td> <td style="TEXT-ALIGN: left; FONT-STYLE: normal; FONT-FAMILY: Times New Roman; BACKGROUND: #ffffff; FONT-SIZE: 10pt; VERTICAL-ALIGN: top; FONT-WEIGHT: 400" width="19%"> <div>The PRC, a limited liability company</div> </td> <td style="TEXT-ALIGN: left; FONT-STYLE: normal; FONT-FAMILY: Times New Roman; BACKGROUND: #ffffff; FONT-SIZE: 10pt; VERTICAL-ALIGN: top; FONT-WEIGHT: 400" width="1%"> <div>&#160;</div> </td> <td style="TEXT-ALIGN: left; FONT-STYLE: normal; FONT-FAMILY: Times New Roman; BACKGROUND: #ffffff; FONT-SIZE: 10pt; VERTICAL-ALIGN: top; FONT-WEIGHT: 400" width="25%"> <div>Production of a variety of industrial valve components which are widely used in water supply and sewage system, coal and gas fields, power generation stations, petroleum and chemical industries in the PRC</div> </td> <td style="TEXT-ALIGN: left; FONT-STYLE: normal; FONT-FAMILY: Times New Roman; BACKGROUND: #ffffff; FONT-SIZE: 10pt; VERTICAL-ALIGN: top; FONT-WEIGHT: 400" width="1%"> <div>&#160;</div> </td> <td style="TEXT-ALIGN: left; FONT-STYLE: normal; FONT-FAMILY: Times New Roman; BACKGROUND: #ffffff; FONT-SIZE: 10pt; VERTICAL-ALIGN: top; FONT-WEIGHT: 400" width="19%"> <div>US$5,000,000</div> </td> <td style="TEXT-ALIGN: left; FONT-STYLE: normal; FONT-FAMILY: Times New Roman; BACKGROUND: #ffffff; FONT-SIZE: 10pt; VERTICAL-ALIGN: middle; FONT-WEIGHT: 400" width="1%"> <div>&#160;</div> </td> <td style="TEXT-ALIGN: left; FONT-STYLE: normal; FONT-FAMILY: Times New Roman; BACKGROUND: #ffffff; COLOR: #000000; FONT-SIZE: 10pt; VERTICAL-ALIGN: top; FONT-WEIGHT: 400" width="12%"> <div>100%</div> </td> <td style="TEXT-ALIGN: left; FONT-STYLE: normal; FONT-FAMILY: Times New Roman; BACKGROUND: #ffffff; FONT-SIZE: 10pt; VERTICAL-ALIGN: top; FONT-WEIGHT: 400" width="1%"> <div>&#160;</div> </td> </tr> </table> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt"></div> </div> <font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt"></font> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0in 0in 0pt" align="justify"><font style="FONT-SIZE: 10pt">&#160;</font></div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0in 0in 0pt" align="justify"><font style="FONT-SIZE: 10pt">NFEC and its subsidiary are hereinafter referred to as (the &#8220;Company&#8221;).</font></div> </div><table border="0" style="width:100%; table-layout:fixed;" cellspacing="0" cellpadding="0"><tr><td></td></tr></table>
CY2015Q1 us-gaap Inventory Work In Process Net Of Reserves
InventoryWorkInProcessNetOfReserves
806516 USD
CY2014Q4 us-gaap Inventory Work In Process Net Of Reserves
InventoryWorkInProcessNetOfReserves
721798 USD
CY2014Q4 us-gaap Accounts Receivable Gross Current
AccountsReceivableGrossCurrent
8708662 USD
CY2015Q1 nfec Retention Receivable Cost
RetentionReceivableCost
781432 USD
CY2014Q4 nfec Retention Receivable Cost
RetentionReceivableCost
743006 USD
CY2014Q1 us-gaap Amortization Of Deferred Charges
AmortizationOfDeferredCharges
87265 USD
CY2015Q1 us-gaap Amortization Of Deferred Charges
AmortizationOfDeferredCharges
0 USD
CY2015Q1 nfec Warrant Period
WarrantPeriod
P12M

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