China Advanced Construction Materials Group, Inc. (NASDAQ:CADC) Q2 2015 Earnings Conference Call - Final Transcript
Feb 17, 2015 • 08:00 am ET
Greetings. And welcome to the China Advanced Construction Materials Group Fiscal Year 2015 Second Quarter Results Conference Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. (Operator Instructions)
As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Ms. Jemming Shang. Ms. Shang, you may begin.
Thank you. And welcome to China ACM conference call for the second quarter of 2015 fiscal year. I am Jemming Shang, the Board Secretary of China ACM.
(Forward-Looking Cautionary Statements)
Joining us on today's call is Mr. Xianfu Han, Chairman and CEO; Mr. Ken Ren, Independent Director of the Board.
I'll now have prepared remarks from Mr. Han that has been translated into English and will now read on Mr. Han's behalf.
Good morning. In the past quarter, the Government of China hosted the APEC Meeting in Beijing. To mitigate the adverse pollutions, the government ordered suspensions of industrial production in Beijing and vicinity area, larger, wider and longer than expected. Such suspensions had adversely affected certain industries and companies. Our company got affected as well for the quarter.
However, for the rest of the year, we will continue our efforts to increase our client base and improve the collection of account receivables. In the ongoing third quarter, we are committed to sweat to stop loss and bring our business back to the normal track. We target to turn around as soon as possible and are cautiously optimistic to breakeven for the whole fiscal year as we had planned.
For the second quarter fiscal year 2015 results, for the three months ended December 31, 2014, we incurred total revenue of approximately $17.6 million and total cost of revenue of approximately $16.1 million.
Our gross profit for sale of concrete was approximately $1.6 million or 9% of revenue. The provision for doubtful accounts was $1.4 million. And we incurred selling, general and administrative expenses of approximately $2.9 million.
Research and development expenses was $0.3 million. And we recognized net loss of approximately $2.9 million, which was mainly due to the production suspension caused by the APEC Meeting in Beijing.
For the third quarter ended on March 31, 2015, we expect to earn revenue of between $10 million and $11 million, net income of between $1 million and $1.5 million, and EPS of between $0.48 and $0.71 based on fully diluted shares of 2.1 million as of February 15, 2015.
For the full fiscal year ended on June 30, 2015, we expect to earn revenue of between $70 million and $75 million, net income of between $1 million and $2 million, and EPS of between $0.48 and $0.95 based on fully diluted shares of 2.1 million as of February 15, 2015.
Now, I will like to open the call up for questions. Operator, please open the call for questions.