Cavico Corp. Announces First Quarter 2009 Results.* Revenues climb 48.5% year-over-year to reach $12.2 million * Net income increase 50.6% year-over-year to reach $0.4 million LOS ANGELES Los Angeles (lôs ăn`jələs, lŏs, ăn`jəlēz'), city (1990 pop. 3,485,398), seat of Los Angeles co., S Calif.; inc. 1850. & HANOI, Vietnam -- Cavico Corp. ("Cavico" or "the Company") (OTC OTC See: Over-the-counter. OTC See over-the-counter market (OTC). BB: CVIC CVIC Comox Valley International College (Canada) CVIC Combat Visual Information Center (USMC) CVIC Center for Violence and Injury Control CVIC Aircraft Carrier Intelligence Center ), a leading infrastructure development company in Vietnam, today announced financial results for the first quarter ended March 31, 2009. First Quarter 2009 Highlights * Revenue for the first quarter increased 48.5% year-over-year to $12.2 million * Gross profit increased 23.0% year-over-year to $2.6 million and gross margin was 21.6% * Net income increased 50.6% to $0.4 million * Awarded a $6.2 million contract at the Theun HinBoun Expansion Project (Laos) Hydropower hy·dro·pow·er n. Hydroelectric power. Plant * Awarded a $9.8 million contract at the Song Giang 2 Hydropower Plant "We are pleased to report strong financial performance during the first quarter of 2009. Despite the challenging global economic environment in 2008 and early 2009, we continue to experience a high level of demand for our services and have seen a steady flow of new projects. Our high-quality services combined with our improved efficiency has strengthened our position in Vietnam. We continue to remain very positive of our growth prospects in Vietnam," said Mr. Hai Thanh Tran, Vice President of Cavico Corp. Revenues for the first quarter of 2009 increased to $12.2 million, up 48.5% from $8.2 million in the first quarter of 2008. Cavico's strong revenue growth in the first quarter resulted from an increase in revenue contribution from various construction projects including A Luoi Tunnel, Buon TuaSrah, Dong Nai Dong Nai or Donnai (both: dông`nī`), river, c.300 mi (480 km) long, rising as the Da Dung in the mountains of S central Vietnam. 4, and Algeri. During the first quarter of 2009, revenue from mining construction projects increased by $0.1 million, or 12.3% to $1.0 million, from $0.9 million in the first quarter of 2008. Revenue from civil construction projects increased by $3.3 million, or 47.4%, to $10.2 million in the first quarter of 2009 from $6.9 million during the same period last year. The robust growth was due to an increase in hydro power construction projects. The Company's net sales Net Sales The amount a seller receives from the buyer after costs associated with the sale are deducted. Notes: This amount is calculated by subtracting the following items from gross sales: merchandise returned for credit, allowances for damaged or missing goods, freight from other operations (leasing machinery and equipment, selling materials, steel fabrication fabrication (fab´rikā´sh  n),n the construction or making of a restoration. ) increased by $0.6 million or 152.8% to $1.0 million for the first quarter of 2009 from $0.4 million for the period ending March 31, 2008. Gross profit was $2.6 million or 21.6% of sales compared to $2.2 million or 26.1% of sales for the three months ended March 31, 2008. The decline in gross margin was attributable to decreases in gross profit percentages in some major projects. Operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. totaled $1.6 million, up 7.9% from $1.5 million in the first quarter of 2008. As a percentage of revenue, operating expenses declined to 12.8% in the first quarter of 2009 from 17.8% in the same period a year ago. The increase in operating expenses was primarily due to the rise in payroll and rent expenses which were offset by the decline in administrative costs administrative costs, n.pl the overhead expenses incurred in the operation of a dental benefits program, excluding costs of dental services provided. for the corporate office and subsidiaries. The Company reported an operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. of $1.1 million in the first quarter of 2009, compared to $0.7 million in the first quarter of 2008. Other expense was $0.4 million in the first quarter of 2009, compared to other expense of $0.2 million a year ago. The increase in other expense was mainly due to decrease in interest income and gain from disposal of fixed assets fixed assets npl → activo sg fijo fixed assets npl → immobilisations fpl fixed assets fix npl → which was partially offset by gain on foreign currency exchange related to re-measurement of debts in debts in different currencies. Interest expenses excluding increase in capitalized interest Capitalized interest Interest that is not immediately expensed, but rather is considered as an asset and is then amortized through the income statement over time. In the context of project financing, interest that is paid by additional borrowing. for the first quarter of 2009 was consistent to the period in 2008. Net income in the first quarter of 2009 was $0.4 million, up 50.6% from net income in the same period last year. Earnings per share were $0.00 for both three-month periods ended March 31, 2009 and 2008. Financial Condition As of March 31, 2009, the Company has $3.6 million in cash, accounts receivable accounts receivable n. the amounts of money due or owed to a business or professional by customers or clients. Generally, accounts receivable refers to the total amount due and is considered in calculating the value of a business or the business' problems in paying of $10.4 million and construction work in progress of $34.2 million. Total current liabilities Current Liabilities Usually appearing on a company's balance sheet, it represents the amount owed for interest, accounts payable, short-term loans, expenses incurred but unpaid, and other debts due within one year. were $92.2 million, which includes advance from customers of $18 million. As of March 31, 2009, shareholders' equity Shareholders' Equity A firms' total assets minus its total liabilities. Equivalently, it is share capital plus retained earnings minus treasury shares. Shareholders' equity is the amount by which a company is financed through common and preferred shares. reached $19.1 million, up 1.9% from shareholder's equity of $18.8 million as of December 31, 2008. During the three months ended March 31, 2009, the Company used $2.0 million in operating activities. Subsequent Events On April 7, 2009, Cavico announced that on March 6, 2009 the Company was awarded a $4.9 million construction contract by Lilama, a state-owned company under the management of the Vietnamese Ministry of Construction. On April 20, 2009 Cavico announced that on March 19, 2009 the Company signed an additional contract valued at $3 million with the Project Management of Industrial and Urban Development Corporation (IDICO) of Dak Mi 4 hydropower plant. On April 27, 2009 Cavico announced that on April 22, 2009 the Company's subsidiary, Cavico Vietnam entered into an agreement with Laos Ministry of Planning and Investment to explore and exploit copper, gold, and other ores in Muang Hom district, Vientiane province, Laos. On April 29, 2009 Cavico announced that the Company held its Special Meeting of Shareholders on April 27, 2009, in Huntington Beach, California Huntington Beach is a seaside city in Orange County in southern California. As of the 2000 census, the city population was 189,594. It is bordered by the Pacific Ocean on the west, by Seal Beach on the north, by Costa Mesa on the south, by Westminster on the northeast, and by . At the meeting, shareholders cast 93,535,396 votes totaling 71.4% of the shares outstanding. On May 12, 2009 Cavico announced that on May 11, 2009 it was awarded a contract for $8.5 million from the Vietnam Ministry of Agriculture and Rural Development for construction at Ngan Truoi reservoir of Ngan Truoi Irrigation irrigation, in agriculture, artificial watering of the land. Although used chiefly in regions with annual rainfall of less than 20 in. (51 cm), it is also used in wetter areas to grow certain crops, e.g., rice. Dam. Cavico won the bidding for a portion of the reservoir project located at Vu Quang village, Ha Tinh province Ha Tinh (in Vietnamese Hà Tĩnh; Hán Tự: ) is a province in the North Central Coast of Vietnam. Geography Hà Tĩnh Province is located in the Northern part of central Vietnam, about 340 km south of Hanoi, facing Nghệ An province in the North, . Business Outlook Cavico continues to make progress and exhibit strong revenue growth demonstrating its ability to grow despite the challenging global economic conditions. The Company has been successful in acquiring new contracts. The Company is positive about the long term growth prospects of the Vietnamese economy. "We are pleased to report a strong top line and net income growth as we continue to expand our presence in Vietnam. Our growth plans include expanding into real estate investments in Vietnam. We have received encouragement and support from the government to acquire ownership of utilities projects. We plan to advance these efforts by entering into strategic partnerships with other investors," said Mr. Tran. About Cavico Corp. (OTCBB OTCBB See OTC Bulletin Board (OTCBB). : CVIC) Cavico Corp. is focused on large infrastructure projects, which include the construction of hydropower facilities, dams, bridges, tunnels, roads, mines and urban buildings. Cavico is also making investments in hydropower facilities, cement production plants and urban developments in Vietnam. The company employs more than 3000 employees on projects worldwide, with offices throughout Vietnam and a satellite office in Australia. Founded in 2000, Cavico is a major infrastructure construction, infrastructure investment and natural resources conglomerate headquartered in Hanoi, Vietnam. Cavico is highly respected for its core competency in the construction of mission-critical infrastructure including hydroelectric plants, highways, bridges, tunnels, ports and urban community developments. One of the Company's primary competitive advantages is its ability to nurture a project "from concept through completion" with a vertical portfolio of interrelated in·ter·re·late tr. & intr.v. in·ter·re·lat·ed, in·ter·re·lat·ing, in·ter·re·lates To place in or come into mutual relationship. in investment, permitting, design, construction management and facility maintenance services. Cavico's project partners include top multi-national corporations and government organizations. The Company employs more than 3,000 full-time, part-time, and seasonal workers. For more information, visit http://www.cavicocorp.com. Information on the Company's Web site or any other Web site does not constitute a portion of this release. Safe Harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. Statement under the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995 This press release contains "forward-looking statements" within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact in this announcement are forward-looking statements, including but not limited to, the Company's ability to obtain the necessary financing to continue and expand operations, to market its construction services in new markets and to offer construction services at competitive pricing, to attract and retain management, and to integrate and maintain technical information and management information systems; the effects of currency policies and fluctuations, general economic conditions and other factors detailed from time to time in the Company's filings with the United States Securities and Exchange Commission and other regulatory authorities. These statements include, without limitation, statements regarding our ability to prepare the Company for growth, the Company's planned expansions, and predictions and guidance relating to the Company's future financial performance. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. -Financial Tables Follow- [TABLE OMITTED] [TABLE OMITTED] [TABLE OMITTED] |
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