Eastern Security & Protection Services, Inc. (OTC Bulletin Board: EAST) (the "Company") recently announced the financial results for its first quarter ended March 31, 2011. The Company's quarterly report on Form 10-Q was filed with the U.S. Securities and Exchange Commission on May 16, 2011.
"The first quarter of 2011 was our first quarter as a reporting company following our merger. I am pleased to announce that the Company attained significant increases in sales and earnings in the first quarter of 2011, more than doubling revenues and net income from the first quarter of 2010. We remain excited about the prospects of continuing at this rapid pace of growth," commented Mr. Tan, Eastern Security & Protection Services, Inc.’s President, Chief Executive Officer and Chairman.
First Quarter 2011 Results:
- Total revenue for first quarter of 2011 increased 172% to $5.2 million from $1.91 million in the first quarter of 2010.
- Gross profit increased 122% to $2.42 million, as compared to $1.09 million in the prior year.
- Net income increased 113% to $1.41 million, as compared to $0.66 million in first quarter of 2010.
- Fully diluted earnings per share increased 81% to $0.199, compared to $0.11 in the first quarter of 2010.
Financial Condition:
- As of March 31, 2011, the Company had $0.91 million in cash, as compared to $2.3 million as of December 31, 2010.
- Shareholders' equity was $10.85 million, as compared to $6.94 million as of December 31, 2010.
About Eastern Security & Protection Services, Inc.
Eastern Security & Protection Services, Inc. (“EAST”) is primarily engaged in the sales, distribution, installation and maintenance of security and safety products and systems. EAST’s customers are presently located almost exclusively in the PRC and are primarily comprised of: (i) governmental entities; (ii) non-profit organizations; and (iii) commercial entities; and, (iv) residential properties. EAST strives to provide customer-driven, one-stop services to our clients and actively pursue acquisition prospects and other strategic opportunities to expand our product range and the scope and capacity of our services. As of December 31, 2010, EAST had approximately 150 full time employees.
Safe Harbor Statement - This announcement 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 raise additional capital to finance the company's activities; the effectiveness, profitability, and the marketability of its products; legal and regulatory risks associated with the share exchange; the future trading of the common stock of the company; the ability of the company to operate as a public company; the period of time for which its current liquidity will enable the company to fund its operations; the company's ability to protect its proprietary information; general economic and business conditions; the volatility of the company's operating results and financial condition; the company's ability to attract or retain qualified senior management personnel and research and development staff; and other risks detailed in the company's filings with the Securities and Exchange Commission and available on its website at http://www.sec.gov. These forward-looking statements involve known and unknown risks and uncertainties and are based on current expectations, assumptions, estimates and projections about the companies and the industry. The company undertakes no obligation to update forward-looking statements to reflect subsequent occurring events or circumstances, or to changes in its expectations, except as may be required by law. Although the company believes that the expectations expressed in these forward looking statements are reasonable, they cannot assure you that their expectations will turn out to be correct, and investors are cautioned that actual results may differ materially from the anticipated results.
For more information, please contact:
Eastern Security & Protection Services, Inc.
Mr. Rui Tan,
President, Chief Executive Officer and Chairman
Ms. Jing Wang,
Chief Financial Officer and Director
68 Harbin Road, Eastern,
Liaoning, PRC, 110002
Telephone: 86-24-2252-2550
Email: ir@espsi.com
EASTERN SECURITY & PROTECTION SERVICES, INC. CONSOLIDATED BALANCE SHEETS (Amounts in US dollar) | ||||||
| March 31, | Dec. 31, | |||||
| 2011 | 2010 | |||||
| Unaudited | Audited | |||||
| Assets | ||||||
| Current assets | ||||||
| Cash and cash equivalents | 912,880 | 2,308,713 | ||||
| Accounts receivable | 4,557,953 | 4,341,365 | ||||
| Inventories | 476,867 | 313,389 | ||||
| Retention receivable | 182,375 | 145,531 | ||||
| Other receivables | 1,864,245 | 1,214,525 | ||||
| Prepayment and deposits | 322,586 | 317,952 | ||||
| Advance to suppliers | 352,691 | 238,337 | ||||
| Total current assets | 8,669,597 | 8,879,812 | ||||
| Property, plant and equipment, net | 1,529,376 | 1,531,025 | ||||
| Land use rights | 2,161,659 | 2,161,725 | ||||
| Retention receivable, net of current portion | 1,895 | 1,883 | ||||
| Prepayment and deposits, net of current portion | 3,664,800 | 2,427,200 | ||||
| Deferred cost | 47,519 | - | ||||
| Total assets | 16,074,846 | 15,001,645 | ||||
| Liabilities and stockholders’ equity | ||||||
| Current liabilities | ||||||
| Accounts payable | 32,281 | 89,601 | ||||
| Dividend payable | - | 2,427,200 | ||||
| Accrued expenses | 60,383 | 124,463 | ||||
| Deferred maintenance revenue | 3,067,207 | 3,993,240 | ||||
| Taxes payable | 414,784 | 651,376 | ||||
| Due to related parties | 1,286 | 1,277 | ||||
| Bank loans | 1,527,000 | 758,500 | ||||
| Other current liabilities | 113,223 | 9,810 | ||||
| Total liabilities | 5,216,164 | 8,055,467 | ||||
| Stockholders’ equity | ||||||
| COMMON STOCK, par value at $0.0001 per share; 7,123,322 shares outstanding | 713 | 713 | ||||
| Additional paid in capital | 2,613,394 | 170,194 | ||||
| Statutory reserve | 462,933 | 462,933 | ||||
| Retained earnings unappropriated | 7,524,438 | 6,104,543 | ||||
| Accumulated other comprehensive income | 257,204 | 207,795 | ||||
| Total stockholders’ equity | 10,858,682 | 6,946,178 | ||||
| Total liabilities and stockholders’ equity | 16,074,846 | 15,001,645 | ||||
EASTERN SECURITY & PROTECTION SERVICES, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (Amounts in US dollar) | |||||||||
| Three months ended March 31, | |||||||||
| 2011 | 2010 | ||||||||
| Unaudited | Unaudited | ||||||||
| Revenues | 5,202,031 | 1,917,624 | |||||||
| Cost of goods sold | (2,780,242 | ) | (819,378 | ) | |||||
| Gross margin | 2,421,789 | 1,098,246 | |||||||
| Sales, marketing and other operating expenses | (152,261 | ) | (132,968 | ) | |||||
| General and administrative expenses | (355,245 | ) | (145,862 | ) | |||||
| Income from operations | 1,914,283 | 819,416 | |||||||
| Interest expense and bank charges | (11,451 | ) | (19 | ) | |||||
| Interest income | 781 | 354 | |||||||
| Other income (expense), net | (26 | ) | 73,206 | ||||||
| Income from operations before income tax | 1,903,587 | 892,957 | |||||||
| Income tax expense | (483,692 | ) | (227,936 | ) | |||||
| Net income | 1,419,895 | 665,021 | |||||||
| Basic and diluted weighted average shares outstanding | 7,123,322 | 5,998,300 | |||||||
| Basic and diluted net income per share | 0.1993 | 0.1109 | |||||||
Contacts:
Mr. Rui Tan,
President, Chief Executive Officer and Chairman
Ms. Jing Wang,
Chief Financial Officer and Director
86-24-2252-2550
ir@espsi.com
