Press Releases

Fuling Global Inc. Reports Third Quarter 2015 Financial Results

Company to Host Earnings Conference Call on Tuesday, November 17, 8:00 am ET

ALLENTOWN, Pa. and TAIZHOU, China, Nov. 16, 2015 / PRNewswire/ -- Fuling Global Inc. (NASDAQ:FORK) ("Fuling Global" or the "Company"), a specialized producer and distributor of environmentally-friendly plastic serviceware, with precision manufacturing facilities in both the U.S. and China, today announced its financial results for the third quarter ended September 30, 2015.

Mr. Xinfu Hu, Chief Executive Officer of Fuling Global, commented, "We are excited to share our first quarterly earnings results following our listing on NASDAQ earlier this month. We are particularly pleased to report that our net income in the third fiscal quarter of 2015 increased by 17% compared with the same quarter in 2014. In our industry, revenues and expenses are heavily tied to the cost of raw materials, in our case plastic. As a result, when plastic prices dropped significantly from the nine months ended September 30, 2014 to the nine months ended September 30, 2015, with the average monthly price for polypropylene ("PP"), general purpose polystyrene ("GPPS"), and high impact polystyrene ("HIPS") down 26%, 31%, and 29%, respectively, the decreases of our revenues (down 3%) and expenses (down 8%) similarly reflect such decreases, even in a strong quarter where we sold 5% more products by weight than we sold in 2014. We are encouraged by this quarter's results, which show improved gross and operating margins, net income and sales volume."

Mrs. Guilan Jiang, Chairwoman of Fuling Global, added, "Our IPO on NASDAQ is an important step toward becoming a significant player in the global plastic serviceware market. We expect the increased publicity and name recognition that come with being a NASDAQ-listed company, combined with our access to new sources for capital, position us well for growth. Our current growth initiatives focus on increasing our penetration in selected markets and expanding our production capacity." 

Third Quarter 2015 Financial Highlights

   

For the Three Months Ended September 30,

($ millions, expect per share data)

 

2015

 

2014

 

% Change

Revenues

 

$22.4

 

$23.1

 

-2.9%

Gross profit

 

$8.5

 

$7.9

 

7.8%

Gross margin

 

38.1%

 

34.3%

 

3.8%

Operating margin

 

12.1%

 

11.4%

 

0.7%

Net income attributable to Fuling Global

 

$2.7

 

$2.5

 

9.8%

Diluted earnings per share

 

$0.23

 

$0.21

 

9.8%

  • Fuling Global completed its IPO of 4 million ordinary shares for $5.00 per share on November 2, 2015, and the shares began trading on the NASDAQ Capital Market on November 4, 2015 under the ticker symbol "FORK". On November 12, 2015, we announced the partial exercise of the oversubscription option and, with it, the closing of the IPO. In such exercise we sold 38,423 ordinary shares, also at the IPO price of $5.00 per share. These shares immediately began trading on the NASDAQ Capital Market.
  • Net income attributable to Fuling Global increased by 10% to $2.7 million. As a result, diluted earnings per share increased from $0.21 to $0.23.
  • Gross profit increased by 8% to $8.5 million. Gross margin increased by 3.8 percentage points to 38.1% as a result of lower material costs and improved production efficiency.
  • Revenues decreased by 3% to $22.4 million. The decrease was driven by a 7% decrease in average selling price ("ASP") and partially offset by a 5% increase in sale volume.
  • We commenced production of straws at our Allentown facility on June 30, 2015.

Third Quarter 2015 Financial Results

Revenues

For the third quarter of 2015, total revenues decreased by $0.7 million, or 3%, to $22.4 million from $23.1 million for the same period of last year. The decrease in total revenues was mainly driven by 7% decrease in blended ASP for our products sold as a result of lower plastic prices and partially offset by 5% increase in overall shipment volume. Blended ASP per kilogram was $2.37 for the third quarter of 2015, compared to $2.56 for the same period of last year. Sales volume was 9,445 tons for the third quarter of 2015, compared to 8,996 tons for the same period of last year. 

 

For the Three Months Ended September 30,

 

2015

 

2014

 

Revenues
($'000)

 

COGS
($'000)

 

Gross Margin
(%)

 

Revenues
($'000)

 

COGS
($'000)

 

Gross Margin
(%)

Cutlery

$         11,920

 

$       7,692

 

35%

 

$       13,934

 

$         8,981

 

36%

Straws

3,839

 

2,874

 

25%

 

3,148

 

2,468

 

22%

Cups and plates

5,433

 

2,654

 

51%

 

5,527

 

3,327

 

40%

Others products

1,217

 

561

 

54%

 

459

 

257

 

44%

Tax

   

92

         

118

   

Total

$         22,409

 

$     13,873

 

38.1%

 

$       23,068

 

$       15,151

 

34.3%

Revenues from cutlery decreased by $2.0 million, or 14%, to $11.9 million for the third quarter of 2015 from $13.9 million for the same period of last year. The decrease in revenues from cutlery was primarily driven by 8% decrease in ASP as well as 7% decrease in sales volume. The decrease in cutlery volume was primarily related to temporary decrease in orders from two U.S.-based customers that reduced inventory levels during the third quarter of 2015. Revenues from straws increased by $0.7 million, or 22%, to $3.8 million for the third quarter of 2015 from $3.1 million for the same period of last year. This increase was primarily driven by 29% increase in sales volume and partially offset by 5% decrease in ASP. We commenced production of straws at our Allentown facility on June 30, 2015. Revenues from cups and plates decreased by $0.1 million, or 2%, to $5.4 million for the third quarter of 2015 from $5.5 million for the same period of last year. Volume of cups and plates increased by 17% while ASP of cups and plates decreased by 16% for the third quarter of 2015. Revenues from other products, including products for family use, party and other entertainment purposes, increased by approximately $0.8 million, or 165%, to $1.2 million for the third quarter of 2015 from $0.5 million for the same period of last year. This increase was mainly due to sales of measuring cups, which we introduced to the market in 2015. Volume of other products increased by 187% while ASP of other products decreased by 8% for the third quarter of 2015.

On a geographic basis, sales in the U.S., Europe, Australia, Canada, Central and South America, Middle East, and China, grew by -6%, 45%, -61%, -36%, 190%, 32%, and 1,729%, to $19.3 million, $2.0 million, $0.1 million, $0.3 million, $0.3 million, $0.3 million, and $0.1 million, and accounted for 85.9%, 9.1%, 0.5%, 1.4%, 1.2%, 1.4%, and 0.6% of total revenues, respectively, for the third quarter of 2015.

   

For the Three Months Ended September 30,

   

2015

 

2014

 

Y/Y Change

   

Revenues ($'000)

 

% of Total

 

Revenues ($'000)

 

% of Total

 

Amount($'000)

 

%

U.S.

 

$19,258

 

85.9%

 

$20,584

 

89.2%

 

($1,326)

 

-6%

Europe

 

$2,034

 

9.1%

 

$1,398

 

6.1%

 

$636

 

45%

Australia

 

$104

 

0.5%

 

$267

 

1.2%

 

($163)

 

-61%

Canada

 

$315

 

1.4%

 

$489

 

2.1%

 

($174)

 

-36%

Central and South America

 

$261

 

1.2%

 

$90

 

0.4%

 

$171

 

190%

Middle East

 

$308

 

1.4%

 

$233

 

1.0%

 

$75

 

32%

China

 

$128

 

0.6%

 

$7

 

0.0%

 

$121

 

1729%

Total

 

$22,408

 

100.0%

 

$23,068

 

100.0%

 

($660)

 

-3%

Gross profit

Total cost of goods sold decreased by $1.3 million, or 8%, to $13.9 million for the third quarter of 2015 from $15.2 million for the same period of last year. Gross profit increased by $0.6 million, or 8%, to $8.5 million for the third quarter of 2015 from $7.9 million for the same period of last year. Gross margin was 38.1% for the third quarter of 2015, compared to 34.3% for the same period of last year. The increase in gross margin was related to lower material costs as well as improved production efficiency, particularly for our cups and plates and other products. Gross margins for cutlery, straws, cups and plates, and other products were 35%, 25%, 51%, and 54%, respectively, for the third quarter of 2015, compared to 36%, 22%, 40%, and 44%, respectively, for the same period of last year.

Operating income

Selling expenses increased by $0.5 million, or 14%, to $4.0 million for the third quarter of 2015 from $3.5 million for the same period of last year. General and administrative expense increased by 5% to $1.12 million for the third quarter of 2015 from $1.07 million for the same period of last year. Research and development expense increased by 1% to approximately $0.7 million for the third quarter of 2015 from $0.6 million for the same period of last year. As a result, total operating expenses increased by $0.5 million, or 10%, to $5.8 million for the third quarter of 2015 from $5.3 million for the same period of last year.

Operating income increased by $0.1 million, or 3%, to $2.7 million for the third quarter of 2015 from $2.6 million for the same period of last year. Operating margin was 12.1% for the third quarter of 2015, compared to 11.4% for the same period of last year.

Net income

Net income increased by $0.4 million, or 17%, to $2.7 million for the third quarter of 2015 from $2.3 million for the same period of last year. After deduction of non-controlling interest, net income attributable to Fuling Global was $2.7 million, or $0.23 per diluted share, for the third quarter of 2015, compared to $2.5 million, or $0.21 per diluted share, for the same period of last year.

Nine Months Ended September 30, 2015 Financial Results

   

For the Nine Months Ended September 30,

($ millions, expect per share data)

 

2015

 

2014

 

% Change

Revenues

 

$68.2

 

$61.0

 

11.8%

Gross profit

 

$24.6

 

$20.5

 

20.1%

Gross margin

 

36.1%

 

33.6%

 

2.5%

Operating margin

 

11.8%

 

11.7%

 

0.1%

Net income attributable to Fuling Global

 

$7.0

 

$5.8

 

19.2%

Diluted earnings per share

 

$0.60

 

$0.50

 

19.2%

 

Revenues

For the nine months ended September 30, 2015, total revenues increased by $7.2 million, or 12%, to $68.2 million from $61.0 million for the same period of last year. The increase in total revenues was mainly driven by higher volume and partially offset by lower ASP of products sold.

 

For the Nine Months Ended September 30,

 

2015

 

2014

 

Revenues
($'000)

 

COGS
($'000)

 

Gross Margin
(%)

 

Revenues
($'000)

 

COGS
($'000)

 

Gross Margin
(%)

Cutlery

$         39,355

 

$    25,533

 

35%

 

$       36,555

 

$     23,933

 

35%

Straws

9,280

 

7,236

 

22%

 

7,493

 

6,043

 

19%

Cups and plates

16,535

 

8,899

 

46%

 

15,325

 

9,334

 

39%

Other products

2,985

 

1,644

 

45%

 

1,610

 

1,034

 

36%

Tax

   

234

         

147

   

Total

$         68,154

 

$    43,546

 

36.1%

 

$       60,983

 

$    40,491

 

33.6%

Revenues from cutlery, straws, cups and plates, and other products increased by $2.8 million, $1.8 million, $1.2 million, and $1.4 million, or 8%, 24%, 8%, and 85%, to $39.4 million, $9.3 million, $16.5 million, and $3.0 million, respectively, for the nine months ended September 30, 2015.

On a geographical basis, sales in the U.S., Europe, Australia, Canada, Central and South America, Middle East, and China, grew by 11%, 40%, -43%, -18%, 93%, 8%, and 364%, to $62.9 million, $3.0 million, $0.4 million, $0.8 million, $0.3 million, $0.3 million, and $0.4 million, and accounted for 92.3%, 4.3%, 0.6%, 1.2%, 0.4%, 0.5%, and 0.6% of total revenues, respectively, for the nine months ended September 30, 2015.

   

For the Nine Months Ended September 30,

   

2015

 

2014

 

Y/Y Change

   

Revenues ($'000)

 

% of Total

 

Revenues ($'000)

 

% of Total

 

Amount($'000)

 

%

U.S.

 

$62,916

 

92.3%

 

$56,600

 

92.8%

 

$6,316

 

11%

Europe

 

$2,962

 

4.3%

 

$2,110

 

3.5%

 

$852

 

40%

Australia

 

$429

 

0.6%

 

$753

 

1.2%

 

($324)

 

-43%

Canada

 

$784

 

1.2%

 

$957

 

1.6%

 

($173)

 

-18%

Central and South America

 

$296

 

0.4%

 

$153

 

0.3%

 

$143

 

93%

Middle East

 

$345

 

0.5%

 

$319

 

0.5%

 

$26

 

8%

China

 

$422

 

0.6%

 

$91

 

0.1%

 

$331

 

364%

Total

 

$68,154

 

100.0%

 

$60,983

 

100.0%

 

$7,171

 

12%

Gross profit

Total cost of goods sold increased by $3.1 million, or 8%, to $43.5 million for the nine months ended September 30, 2015 from $40.5 million for the same period of last year. Gross profit increased by $4.1 million, or 20%, to $24.6 million for the nine months ended September 30, 2015 from $20.5 million for the same period of last year. Gross margin was 36.1% for the nine months ended September 30, 2015, compared to 33.6% for the same period of last year. The increase in gross margin was related to lower material costs and improved production efficiency, particularly for our cups and plates products. Gross margins for cutlery, straws, cups and plates, and other products were 35%, 22%, 46%, and 45%, respectively, for the nine months ended September 30, 2015, compared to 35%, 19%, 39%, and 36%, respectively, for the same period of last year.

Operating income

Selling expenses increased by $2.2 million, or 24%, to $11.2 million for the nine months ended September 30, 2015 from $9.0 million for the same period of last year. The increase in selling expenses was due to increases of $1.5 million in ocean freight charges, $0.2 million in warehouse and shipping related expense, and $0.2 million in commission. General and administrative expenses increased by $1.2 million, or 46%, to $3.8 million for the nine months ended September 30, 2015 from $2.6 million for the same period of last year. The increase in general and administrative expenses was due to increases of $0.1 million for IPO related expenses, $0.5 million related to our business expansion, especially in the U.S., and $0.4 million in rent expense in our Allentown facility. Research and development expenses decreased by $0.2 million, or 10%, to $1.6 million for the nine months ended September 30, 2015 from $1.8 million for the same period of last year. As a result, total operating expenses increased by $3.2 million, or 24%, to $16.6 million for the nine months ended September 30, 2015 from $13.4 million for the same period of last year.

Operating income increased by $0.9 million, or 13%, to $8.0 million for the nine months ended September 30, 2015 from $7.1 million for the same period of last year. Operating margin was 11.8% for the nine months ended September 30, 2015, compared to 11.7% for the same period of last year.

Net income

Net income increased by $1.1 million, or 19%, to $7.0 million for the nine months ended September 30, 2015 from $5.9 million for the same period of last year. After deduction of non-controlling interest, net income attributable to Fuling Global was $7.0 million, or $0.60 per diluted share, for the nine months ended September 30, 2015, compared to $5.8 million, or $0.50 per diluted share, for the same period of last year.

Financial Condition

As of September 30, 2015, the Company had cash and cash equivalents, restricted cash, short-term borrowing, and bank notes payable of $2.4 million, $2.2 million, $19.6 million, and $2.5 million, respectively, compared to $1.4 million, $3.7 million, $19.5 million, and $3.2 million, respectively, at the end of 2014. Net cash provided by operating activities was $3.0 million for the nine months ended September 30, 2015, compared to $2.2 million for the same period of last year. Net cash used in investing activities was $3.3 million for the nine months ended September 30, 2015, compared to $3.2 million for the same period of last year. Net cash provided by financing activities was $1.5 million for the nine months ended September 30, 2015, compared to net cash used in financing activities of $0.5 million for the same period of last year. We paid a cash dividend of $10.3 million to shareholders and those shareholders subsequently made capital contribution of $7.5 million to the Company in the nine months ended September 30, 2014.

Recent Updates

On October 30, 2015, the Company announced the pricing of its initial public offering ("IPO") of 4 million ordinary shares at price of $5.00 per share. The base IPO was closed on November 2, 2015 and the Company's ordinary shares commenced trading on the NASDAQ Capital Market on November 4, 2015 under the ticker symbol "FORK". On November 12, 2015, the Company announced that the underwriters of its previously announced IPO of ordinary stock have exercised their over-subscription option to purchase an additional 38,423 shares at the IPO price of $5.00 per share. As a result, the Company has raised $20,192,115 in gross proceeds through the issuance of a total of 4,038,423 ordinary shares in the IPO, with all shares being offered by the Company, and the IPO and oversubscription period have ended, effective November 12, 2015. Lead underwriter and book-running manager Burnham Securities Inc. and co-underwriter and co-manager Network 1 Financial Securities, Inc. conducted the offering on a "best efforts" basis. 

Earnings Conference Call

The Company will host its third quarter 2015 financial results conference call at 8:00 am Eastern Time (5:00 am Pacific Time/9:00 pm Beijing Time) on Tuesday, November 17, 2015.  To attend the call, please use the information below for either dial-in access or webcast access. When prompted on dial-in, ask for "Fuling Global Inc./ FORK".

Conference Call

 

Date:

Tuesday, November 17, 2015

Time:

8:00 am ET, U.S.

International Toll Free:

United States: +1 888-346-8982

Mainland China: 400-120-1203

Hong Kong: 800-905-945

International: +1 412-902-4272

Conference ID:

Fuling Global Inc./FORK

Please dial in at least fifteen minutes before the call to ensure timely participation. For those unable to participate, an audio replay of the conference call will be available beginning approximately one hour after the end of the live call through November 24, 2015. The audio replay can be accessed by dialing +1-877-344-7529 within the United States or +1-412-317-0088 internationally, and entering access code No. 10076129.

About Fuling Global Inc.

Fuling Global Inc. ("Fuling Global" or the "Company") is a specialized producer and distributor of environmentally-friendly plastic serviceware, with precision manufacturing facilities in both the U.S. and China. The Company's plastic serviceware products include disposable cutlery, drinking straws, cups, plates and other plastic products and are used by more than one hundred customers primarily from the U.S. and Europe, including Subway, Wendy's, Burger King, KFC (China only), Walmart, McKesson, and Woolworths. More information about the Company can be found at: http://ir.fulingglobal.com/.

Forward-Looking Statements

This press release contains information about Fuling Global's view of its future expectations, plans and prospects that constitute forward-looking statements. Actual results may differ materially from historical results or those indicated by these forward-looking statements as a result of a variety of factors including, but not limited to, risks and uncertainties associated with its ability to raise additional funding, its ability to maintain and grow its business, variability of operating results, its ability to maintain and enhance its brand, its development and introduction of new products and services, the successful integration of acquired companies, technologies and assets into its portfolio of software and services, marketing and other business development initiatives, competition in the industry, general government regulation, economic conditions, dependence on key personnel, the ability to attract, hire and retain personnel who possess the technical skills and experience necessary to meet the requirements of its clients, and its ability to protect its intellectual property. Fuling Global encourages you to review other factors that may affect its future results in Fuling Global's registration statement and in its other filings with the Securities and Exchange Commission.

For more information, please contact:

At the Company:
Gilbert Lee, CFO
Email: ir@fulingplasticusa.com 
Phone: +1-610-366-8070x1835
Web: http://ir.fulingglobal.com/

 

Investor Relations:
Tina Xiao                           
Weitian Group LLC
Email: fork@weitian-ir.com 
Phone: +1-917-609-0333

 

FULING GLOBAL INC. AND SUBSIDIARIES

 CONDENSED CONSOLIDATED BALANCE SHEETS

  (UNAUDITED)

     

 September 30,

 

 December 31,

     

2015

 

2014

           

 ASSETS

 Current Assets:

         

 Cash and cash equivalents

 

$

2,409,517

$

1,399,714

 Restricted cash

   

2,222,422

 

3,700,886

 Accounts receivable, net

   

12,381,510

 

13,018,702

 Advance to supplier, net

   

1,785,793

 

739,002

 Inventories, net

   

15,456,525

 

14,935,076

 Prepaid expenses and other current assets

   

158,443

 

906,705

 Total Current Assets      

   

34,414,210

 

34,700,085

           

 Property, plant and equipment, net

   

21,130,548

 

20,517,240

 Intangible assets, net

   

1,828,080

 

1,650,037

 Other non-current assets

   

459,856

 

356,425

                     Total Assets

$

57,832,694

$

57,223,787

           
           

 LIABILITIES AND SHAREHOLDERS' EQUITY

           

 Current Liabilities:

         

 Short term borrowings

 

$

19,584,412

$

19,524,207

 Bank notes payable

   

2,522,034

 

3,244,333

 Advances from customers

   

590,632

 

695,873

 Accounts payable 

   

9,856,358

 

14,194,154

 Accrued and other liabilities

   

1,037,214

 

1,316,921

 Taxes payable

   

381,635

 

560,253

 Loan from third parties

   

188,567

 

195,249

 Due to related parties

   

-

 

38,273

 Total Current Liabilities 

   

34,160,852

 

39,769,263

           

                     Total  Liabilities 

 

34,160,852

 

39,769,263

           

 Commitments and contingencies

         
           

 Shareholders' Equity

         

 Common stock: $0.001 par value, 70,000,000 shares authorized,
11,666,667 shares issued and outstanding as of September 30, 2015 and December 31, 2014

 

11,667

 

11,667

 Additional paid in capital

   

11,108,133

 

11,108,133

 Statutory reserve

   

2,548,745

 

1,862,365

 Retained earnings

   

9,419,555

 

3,147,151

 Accumulated other comprehensive income

   

312,539

 

1,094,617

 Total Fuling Global Inc.'s equity

   

23,400,639

 

17,223,933

           

 Noncontrolling interest

   

271,203

 

230,591

                      Total Shareholders' Equity  

   

23,671,842

 

17,454,524

           

             Total Liabilities and Shareholders' Equity

 

$

57,832,694

$

57,223,787

           

 

FULING GLOBAL INC. AND SUBSIDIARIES

 CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND OTHER COMPREHENSIVE INCOME

 (UNAUDITED)

 
   

 For the three months ended September 30,

 

 For the nine months ended September 30,

   

2015

 

2014

 

2015

 

2014

                 

 Revenues

$

22,408,759

$

23,068,486

$

68,154,114

$

60,983,218

 Cost of goods sold

 

13,872,937

 

15,151,098

 

43,546,039

 

40,491,242

 Gross Profit

 

8,535,822

 

7,917,388

 

24,608,075

 

20,491,976

                 

 Operating Expenses

               

 Selling expenses

 

4,046,228

 

3,561,213

 

11,188,964

 

8,993,957

 General and administrative expenses

 

1,120,577

 

1,072,143

 

3,798,716

 

2,603,560

 Research and development expenses

 

650,570

 

643,353

 

1,583,449

 

1,763,688

 Total operating expenses

 

5,817,375

 

5,276,709

 

16,571,129

 

13,361,205

                 

 Income from Operations

 

2,718,447

 

2,640,679

 

8,036,946

 

7,130,771

                 

 Other Income (Expense):

               

 Interest income

 

30,337

 

11,253

 

49,298

 

27,362

 Interest expense

 

(268,890)

 

(320,580)

 

(906,794)

 

(925,618)

 Subsidy income

 

213,357

 

248,260

 

367,779

 

421,594

 Other income, net

 

402,933

 

90,448

 

607,691

 

147,857

 Total other income (expense), net

 

377,737

 

29,381

 

117,974

 

(328,805)

                 

 Income Before Income Taxes

 

3,096,184

 

2,670,060

 

8,154,920

 

6,801,966

                 

 Provision for Income Taxes

 

410,456

 

375,066

 

1,155,524

 

934,106

                 

 Net Income 

$

2,685,728

$

2,294,994

$

6,999,396

$

5,867,860

                 

 Less: net (loss) income attributable to noncontrolling interest

 

(44,826)

 

(192,074)

 

40,612

 

32,137

                 

 Net income attributable to Fuling Global Inc.

 

2,730,554

 

2,487,068

 

6,958,784

 

5,835,723

                 

 Other Comprehensive Income

               

 Foreign currency translation loss

 

(782,876)

 

744

 

(782,078)

 

(234,986)

 Comprehensive Income

$

1,947,678

$

2,487,812

$

6,176,706

$

5,600,737

                 

 Earning per share

               

 Basic and diluted

$

0.23

 

$

0.21

$

0.60

$

0.50

                 

 Weighted average number of shares

               

 Basic and diluted

 

11,666,667

 

11,666,667

 

11,666,667

 

11,666,667

                 

 Cash dividends per share

               

 Basic and diluted

$

-

 

$

-

$

-

$

0.88

 

 

FULING GLOBAL INC. AND SUBSIDIARIES

 CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

 (UNAUDITED)

 
     

 For the nine months ended September 30,

     

2015

 

2014

 CASH FLOWS FROM OPERATING ACTIVITIES

       
 

 Net income      

$

6,999,396

$

5,867,860

 

 Adjustments to reconcile net income to net cash

       
 

   provided by operating activities:

       
 

 Deferred tax expense

 

-

 

155,647

 

 Depreciation and amortization

 

1,650,944

 

1,290,357

 

 Bad debt provisions

 

57,193

 

33,229

 

 Gain on disposal of fixed assets

 

-

 

28,680

 

 Changes in operating assets:

       
 

    Accounts receivable

 

778,619

 

4,348,240

 

    Advances to suppliers

 

(1,101,282)

 

147,561

 

    Inventories

 

(714,486)

 

(2,599,261)

 

    Other assets

 

543,807

 

(1,993,485)

 

 Changes in operating liabilities:

       
 

    Accounts payable

 

(4,967,288)

 

(13,719,900)

 

    Advance from customers

 

(85,926)

 

7,357,666

 

    Taxes payable

 

42,374

 

726,989

 

    Accrued and other liabilities

 

(250,549)

 

576,299

 

         Net cash provided by operating activities    

 

2,952,802

 

2,219,882

           

 CASH FLOWS FROM INVESTING ACTIVITIES

       
 

 Purchase of property and equipment

 

(2,002,241)

 

(3,076,672)

 

 Proceeds from disposal of property and equipment

 

-

 

4,875

 

 Advance payments on equipment purchase

 

(1,049,349)

 

(117,865)

 

 Purchase of intangible assets

 

(266,947)

 

-

 

         Net cash used in investing activities

 

(3,318,537)

 

(3,189,662)

           

 CASH FLOWS FROM FINANCING ACTIVITIES

       
 

 Proceeds from short-term borrowings

 

36,160,712

 

19,185,771

 

 Repayments of short-term borrowings

 

(35,409,841)

 

(18,952,719)

 

 Proceeds from bank notes payable

 

4,084,697

 

4,719,523

 

 Repayments of bank notes payable

 

(4,714,801)

 

(3,266,107)

 

 Repayments of loans from related parties

 

(38,102)

 

(221,881)

 

 Change of restricted cash 

 

1,393,471

 

696,028

 

 Capital contribution

 

-

 

7,530,000

 

 Dividends paid to shareholders

 

-

 

(10,300,136)

 

         Net cash provided by (used in) financing activities    

 

1,476,136

 

(609,521)

           

 EFFECT OF EXCHANGE RATE CHANGES ON CASH

 

(100,598)

 

13,777

           

 NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS

 

1,009,803

 

(1,565,524)

           

 CASH AND CASH EQUIVALENTS, BEGINNING OF THE PERIOD 

 

1,399,714

 

2,698,795

           

 CASH AND CASH EQUIVALENTS, ENDING OF THE PERIOD

$

2,409,517

$

1,133,271

           

 SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:

       
 

 Cash paid during the period for:

       
 

 Interest paid

$

967,248

$

830,399

 

 Income tax paid

$

1,168,820

$

753,399

 

 Non-cash investing activities:

       
 

 Transfer from construction in progress to fixed assets

$

1,129,339

$

-

 

 Transfer from advance payments to fixed assets

$

918,858

$

680,251

 

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/fuling-global-inc-reports-third-quarter-2015-financial-results-300179388.html

SOURCE Fuling Global Inc.