Readen Holding Corp.
PINKSHEETS : RHCO

May 22, 2012 16:09 ET

Readen Holding Corp. (PINKSHEETS:RHCO) Announces Financial Results for the Three Months Ended March 31, 2012

HILVERSUM, NETHERLANDS--(Marketwire - May 22, 2012) - Readen Holding corp. (PINKSHEETS:RHCO), a Nevada Corporation, engaged in the business of identifying and acquiring privately held equity holdings in various entities worldwide reported results for the three months ended March 31, 2012.

Revenue for the quarter generated on the sale of commodities and plastics was $1.23 million as compared to revenue of $0.643 million reported in the previous quarter, implying an increase of 91.11% sequentially.

Gross profit in the quarter increased 85.84% to $305,459, compared with $164,363 in the previous quarter. Gross margin fell to 24.867% from gross margin of 25.57% in the prior quarter, representing a drop of 70 basis points.

Operating Expenses for the current quarter increased to $0.214 million representing an increase of 76.5%, compared with operating expense of $0.138 million in the previous quarter; while the increase in the operating income had been a very percentage of 246.15%. Income from operations for the reported quarter was $0.9084 million on an operating margin of 7.39% as compared to operating of $0.2624 million reported in the prior quarter on a margin of 4.08%. The increase in the margin earned by the Company was 331 basis points quarter over quarter.

Readen Holding had also in the quarter reported a commissions income of $0.046 million which led the net income to increase to $0.136 million or $0.00/share without incurring any tax expense for the quarter. Net income in the quarter ago period was $0.0168 million or $0.00/share on 150.267 million shares and 150.237 million shares outstanding respectively. Net earnings increased 709.52% quarter over quarter.

Cash used by the Company in the quarter was $0.075 million while it had expended $0.026 million on capital expenditure. Investing activities generated cash equivalents of $0.1896million which resulted in cash balance of $0.1388 million at the end of the quarter as against a cash balance of $0.056 million at the end of the December 31, 2011.

Total Assets at the end of the period was $6.8389 million with the Property and Equipment balance being $0.0982 million and Goodwill balance being $5 million. Accounts receivable stood at $0.3166 million; and inventory balance was $0.7434 million at the quarter end.

Liabilities totaled $1.376 million with the Loans net of current portion being $0.4518 million and accounts payable standing at $0.2392 million at the end of the quarter.

Total Shareholder's equity was $5.46292 million of which the Preferred Capital was $767 and common stock was $0.1503 million. Additional paid in capital at the period end was $6.5145 million and accumulated deficit was $1.203 million for the quarter. Accumulated deficit in the last period was $1.292 million.

About Readen Holding Corp.:

Readen Holding Corp is a Nevada Corporation, engaged in the business of identifying and acquiring privately held equity holdings in various entities worldwide. The Company operates as the parent company of Readen Industries Limited, a company organized under the laws of Hong Kong, PRC.

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