Nano precipitated calcium carbonate maker, ShengdaTech, Inc. (SDTH), Thursday said its fourth-quarter earnings increased from the same quarter a year ago, helped by an increase in gross margin, an increase in revenues and a one-time gain related to the extinguishments of the company's convertible senior notes.
ShengdaTech's net income for the fourth quarter increased 62.8% to 12.663 million from $7.779 million in the same quarter a year ago. Earning per share for the fourth quarter, however, decreased to $0.11 per share from $0.15 per share in the same quarter last year, due to a higher share count.
The company said Pro forma net income for the fourth quarter, excluding the gain related to the repurchase of its convertible senior notes, increased 12.3% year-over-year to $8.7 million, or $0.13 per share.
On average, four analysts polled by Thomson Reuters expected fourth quarter earnings of $0.12 per share. Analysts' estimate typically exclude special items such as one-time charges or gains.
Gross margin for the quarter increased to 43.0% from 35.8% for the same quarter last year. Pro forma net margin for the fourth quarter was 27.5%.
The company recoded a gain of $9.018 million related to the extinguishments of long-term convertible notes, absent such a gain in the same quarter a year ago.
Operating income for the fourth quarter, however, decreased to $8.423 million from $8.435 million in the fourth quarter of last year, primarily hurt by an increase in total operating expenses. Total operating expenses for the fourth quarter increased to $5.250 million from $1.823 million in the corresponding quarter last year.
EBITDA for the fourth quarter improved 104.6% year-over-year to $18.5 million from $9.1 million in the fourth quarter of last year.
Net sales for the fourth quarter increased to $31.775 million from $28.623 million in the same quarter a year ago, helped by an increase in average selling prices and increased demand for NPCC products. NPCC products revenue for the fourth quarter surged 76.7% to $24.4 million from $13.8 million in the year-ago quarter.
Street analysts estimated net revenues of $29.38 million for the fourth quarter.
For the full year, net income increased to $40.035 million or $0.60 per share from $27.030 million or $0.50 per share last year. Earnings per share for the full year were in line with analysts' estimate.
Pro forma net income for the full year increased 34.8% to $36.4 million and pro forma earnings per share for the full year increased to $0.64 from $0.50 last year.
Revenues for the full year increased to $149.427 million from $100.654 million a year ago, analysts expected revenues of $147.02 million for the year.
ShengdaTech said it expects 2009 revenue and net income from NPCC to be in the range of $92 million to $94 million and $18 million to $19 million, respectively, with earnings per share of $0.32 - $0.34.
SDTH is currently trading at $3.42, up $0.25 or 7.92% on a volume of 277k shares on the Nasdaq.
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