SOURCE: Worldwide Energy & Manufacturing USA, Inc.

August 19, 2009 16:27 ET

Worldwide Energy and Manufacturing USA Announces Second Quarter 2009 Financial Results

SOUTH SAN FRANCISCO, CA and SHANGHAI, CHINA--(Marketwire - August 19, 2009) - Worldwide Energy and Manufacturing USA, Inc. (OTCBB: WEMU), a U.S.-based solar module technology and China manufacturing company specializing in products for customers in the industries of solar energy, aerospace, wireless telecommunications, medical equipment and automotive industries, today announced financial results for the second quarter ended June 30, 2009. A conference call to discuss these results is scheduled for Wednesday, August 19, 2009 at 4:05 p.m. Eastern time (1:05 p.m. Pacific time). Details on accessing the call follow, below.

Highlights of Second Quarter 2009 Results

--  Second quarter revenue increased 51% to $10.32 million due to strong
    sales in the solar energy division.
--  Solar module revenues were $7,499,560 compared to solar module sales
    of $2,505,977 for the same quarter in 2008, or an increase of approximately
    199%.
--  EBITDA was $0.08 per share or $299,919 compared to $0.21 per share or
    $464,788.
--  Net income was $19,299 or $0.01 per share for the quarter compared to
    $412,708 or $0.20 in the June quarter of 2008.
--  Net income before tax was $320,830 compared to $445,290 in the quarter
    ended June 30, 2009 and June 30, 2008, respectively, a decrease of
    approximately $124,460, or approximately 28%.
    

Highlights of the Six Months Ended June 30, 2009

--  Six-month revenue increased by 68% to $20.6 million compared to net
    sales of $12.25 million in the same period of 2008.
--  Solar module revenues were $14.4 million compared to solar module
    sales of $5.79 million for the same period of 2008, or an increase of
    approximately 149%.
--  EBITDA was $0.24 per share or $850,741 compared to $0.34 per share or
    $758,077.
--  Net income was $454,888 or $0.13 per share for the six-month period
    compared to  $655,361 or $0.29 per share in the six-month period of 2008.
--  Net income before tax was $820,122 compared to $655,527 in the six-
    month period of June 30, 2009 and June 30, 2008, respectively, an increase
    of $164,595, or 25%.
    

Jimmy Wang, chief executive officer of Worldwide Energy and Manufacturing, stated: "Though we will not meet our $100 million revenue goal in 2009, I am confident we will generate $60 million in revenue; EBIDTA of $2.5 million or approximately 70 cents and a net income of approximately $2 million, or approximately 56 cents per share. Our solar division continues to drive the growth in our company. We expect 2010 to be a blockbuster year for our solar division. We continue to focus on building our solar module division and enhancing our factory operations."

Second Quarter Ended June 30, 2009

Net sales for the three months ended June 30, 2009 were $10.32 million compared to net sales of $6.85 million for the same period in 2008. This increase of $3.46 million, or approximately 51%, was the result of an increase in orders in our energy division. The Company continues to focus on its marketing of its solar module by establishing a sales team in China and the United States. This effort has resulted in increases in sales of the Company's solar modules. Solar module sales for the quarter ended June 30, 2009 were $7.5 million compared to sales of $2.5 million in the same quarter of 2008 an increase of $4.99 million, or approximately 199%, in solar revenues. Solar modules revenues comprised approximately 72.7% of the company's gross sales in the three-month period ended June 30, 2009 compared to 36.6 % in the same period of 2008. Net sales for the Company's contract manufacturing business was $2.8 million for three months ended June 30, 2009 compared to net sales in contract manufacturing of $4.35 million for the same period in 2008. The decrease in contract manufacturing sales of $1.53 million, or approximately 35%, is the result of the company's focus on solar and the decline in overall market conditions for contract parts.

Gross profit increased by $465,841, or approximately 34.9% from $1,335,759 in the quarter ended June 30, 2008 to $1,801,600 for the three months ended June 30, 2009, reflecting solar module sales in the energy division. The gross profit for solar module sales was $807,030 for the three months ended June 30, 2009 compared to $436,427 in the same period of 2008. This represents an increase of $370,603 in gross profit for the Company's energy division or approximately 84.9%. The gross profit for contract manufacturing for the three months ended June 30, 2009 was $994,570 compared to $899,332 in the same period of 2008, representing an increase of $95,238, or 10.6%. The demand has improved for contract parts due to the improving global economy.

The gross margin was 17.5% for the three months ended June 30, 2009 compared to 19.5% in the same period in 2008. The decline of 2% in gross margin was the result of the company experiencing declines in contract manufacturing margins due to the downturn in the economy. The gross margin for solar for the quarter ended June 30, 2009 was 10.8% compared to 17.4%. This decline of 6.6% was due to the decline in prices of solar modules. The gross margin for contract manufacturing for the quarter ended June 30, 2009 was 35.3% compared to 20.7% in the same period in 2008. The improvement of gross margin in contract manufacturing was 14.6% was due to improve margins at the power supply factory.

Net income before taxes for the three months ended June 30, 2009 was $320,830 compared to a profit of $445,290 for the three months ended June 30, 2008. The decrease of $124,460 or approximately 28.0% was the result of price weakness in our contract manufacturing business due to the weak economy. Net income before tax for the solar module division was $283,235 for the quarter ended June 30, 2009 compared to a net profit before tax of $165,512 in the same period in 2008. This represents an increase of $117,723 or approximately 71.1% as the solar division continues to grow. Net income before tax for contract manufacturing for the three months ended June 30, 2009 was $37,595 compared to $279,778 in the same period in 2008. This represents a decline of $242,183 or approximately 87% as a result of slow demand in our contract manufacturing business.

Net income after tax for the three months ended June 30, 2009 was $19,299 compared to a net profit of $425,035 for the three months ended June 30, 2008. The decrease of $405,736, or approximately 95.5%, was the result of income taxes of $204,078 being due in the quarter compared to income taxes of $19,702 in the same period of 2008. Earnings per share fully diluted for the three months ended June 30, 2009 was $0.01 compared to fully diluted earnings per share of $0.20 for the three months ended June 30, 2008.

Six Months Ended June 30, 2009

Net sales for the six-month period ended June 30, 2009 was $20,598,780 compared to sales of $12,245,410 in six-month period ended June 30, 2008. The increase of $8,353,370, or approximately 68.2% was the result of an increase in orders in our energy division. Gross profit was $3,701,192 for the six months ended June 30 compared to gross profit of $2,490,156 in the same period in 2008. This represents gross margin of 18.0% for the six months ended June 30, 2009 compared to 20.3% in the same period in 2008. The declined of 2.3% in gross margin was the result of the decline in prices for our solar modules due to the economy.

Net income after tax for the six months ended June 30, 2009 was $454,888 compared to a net profit of $655,361 for the six months ended June 30, 2008. The decrease of $200,473 or approximately 31% was the result of income taxes of $242,624 being due in the quarter compared to income taxes of $8,298 in the same period of 2008. Earnings per share fully diluted for the six-month period ended June 30, 2009 was $0.13 compared to fully diluted earnings per share of $0.29 for the six months ended June 30, 2008.

Balance Sheet

Cash and cash equivalents totaled $4.1 million on June 30, 2009, compared to $5.1 million at year end 2008. Accounts receivable increased to $9.06 million for the period ended June 30, 2009 compared to $4.79 million at year end 2008.

Total current assets and total assets were $19.77 million and $26.01 million on June 30, 2009. This compared to total current assets of $18.52 million and total assets of $23.51 million in the previous quarter.

Total current liabilities and total liabilities totaled $13.35 million and $14.20 million on June 30, 2009 compared to total current liabilities and total liabilities of $11.10 million and $11.98 million in the previous quarter.

Conference Call and Webcast

The call information follows:

Date: August 19, 2009
Time: 4:05 p.m. Eastern Daylight Time
Dial-in number for US/Canada: (877) 941-2927 or (480) 629-9725 for
international calls
Live Webcast: http://www.wwmusa.com or alternately at
http://viavid.net.

A replay of the call will be available for two weeks from 7:05 p.m. August 19, 2009, EDT until 11:59 p.m. EDT on September 2, 2009. The number for the replay is (800) 406-7325, or (303) 590-3030 for international calls; the passcode for the replay is 4142647. In addition, a recording of the call will be available via the company's website at http://www.wwmusa.com for one year.

About Worldwide Energy and Manufacturing USA, Inc.

Worldwide Energy and Manufacturing USA, Inc. ("Worldwide"), headquartered in South San Francisco, California, is a 15-year-old engineering-oriented firm specializing in PV panel, mechanical, electronics and fiber optic products manufacturing. The company's worldwide customer base includes the industries of solar energy, wireless telecommunications, aerospace, automobiles and medical equipment. Subsidiaries include Shanghai Intech Electro Mechanical Products Co. Ltd., Shanghai Intech Electronics Manufacturing Co. Ltd. and Shanghai Intech Precision Mechanical Products Manufacturing Co. Ltd., located in Shanghai, China.

For further information on Worldwide Energy and Manufacturing USA, Inc., please visit http://www.wwmusa.com. You may register to receive Worldwide Energy and Manufacturing USA, Inc.'s future press releases or request to be added to the Company's distribution list by contacting John Ballard.

Forward-looking statements:

The above news release contains forward-looking statements. The statements contained in this document that are not statements of historical fact, including but not limited to, statements identified by the use of terms such as "anticipate," "appear," "believe," "could," "estimate," "expect," "hope," "indicate," "intend," "likely," "may," "might," "plan," "potential," "project," "seek," "should," "will," "would," and other variations or negative expressions of these terms, including statements related to expected market trends and the Company's performance, are all "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 and involve a number of risks and uncertainties. These statements are based on assumptions that management believes are reasonable based on currently available information, and include statements regarding the intent, belief or current expectations of the Company and its management. Prospective investors are cautioned that any such forward-looking statements are not guarantees of future performances, and are subject to a wide range of external factors, uncertainties, business risks, and other risks identified in filings made by the company with the Securities and Exchange Commission. Actual results may differ materially from those indicated by such forward-looking statements. The Company expressly disclaims any obligation or undertaking to update or revise any forward-looking statement contained herein to reflect any change in the company's expectations with regard thereto or any change in events, conditions or circumstances upon which any statement is based.

{FINANCIAL CHARTS FOLLOW}


      WORLDWIDE ENERGY AND MANUFACTURING USA, INC. AND SUBSIDIARIES
                  CONDENSED CONSOLIDATED BALANCE SHEETS

                                                    June 30,   December 31,
                                                      2009         2008
                                                  (Unaudited)   (Restated)
                      ASSETS
Current assets:
  Cash and cash equivalents                       $  4,111,937 $  5,092,476
  Accounts receivables, net of allowances of
   $272,000 and $46,000                              9,061,246    4,790,506
  Notes receivables                                    104,081      269,507
  Inventories                                        4,840,432    3,754,765
  Income tax receivable                                338,148            -
  Advances to suppliers                                455,390       99,824
  Other receivable                                     185,400      185,400
  Prepaid and other current assets                     671,119      206,770

                                                  ------------ ------------
Total current assets                                19,767,753   14,399,288

Property, plant and equipment, net                   2,050,320    1,353,539
Intangible assets                                    1,101,000    1,101,000
Goodwill                                               285,714      285,714
Investment at cost                                      51,892       51,892
Deposits paid for contracts in process               2,500,000    1,673,084
Long term receivable - related party                   253,729      260,973
Other assets                                                 -        7,559

                                                  ------------ ------------
Total assets                                      $ 26,010,408 $ 19,133,009
                                                  ============ ============

       LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
  Accounts payable                                $  8,492,605 $  3,400,253
  Accrued expenses                                   1,046,332      867,291
  Lines of credit                                    1,300,000            -
  Acquisition cost payable                                   -      285,714
  Tax payable                                          481,468      364,213
  Due to related parties                             1,242,393    1,243,024
  Customer deposits                                    788,162      964,998

                                                  ------------ ------------
Total current liabilities                           13,350,960    7,125,493

Non-current liabilities
  Line of credit                                       848,702      937,075
  Loan payable to stockholders                               -       60,024
                                                  ------------ ------------
Total non-current liabilities                          848,702      997,099

                                                  ------------ ------------
Total liabilities                                   14,199,662    8,122,592

Commitments and contingencies (Note 3)

Stockholders’ equity
  Common stock (No Par Value : 100,000,000 shares
   authorized; 3,621,612 and 3,493,512 shares issued
   and outstanding)                                  6,223,599    6,108,379
  Retained earnings                                  4,256,809    3,801,921
  Accumulated other comprehensive income               581,563      487,478

                                                  ------------ ------------
Total stockholders’ equity                          11,061,971   10,397,778
                                                  ------------ ------------

  Noncontrolling interest                              748,775      612,639

                                                  ------------ ------------
Total equity                                        11,810,746   11,010,417
                                                  ------------ ------------
Total liabilities and stockholders’ equity        $ 26,010,408 $ 19,133,009
                                                  ============ ============



      WORLDWIDE ENERGY AND MANUFACTURING USA, INC. AND SUBSIDIARIES
              CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND
                           COMPREHENSIVE INCOME
                                (UNAUDITED)


                     For The Six Months Ended   For The Three Months Ended
                             June 30,                    June 30,
                        2009          2008          2009          2008
                    ------------  ------------  ------------  ------------
Revenue
Sales               $ 20,598,780  $ 12,245,410  $ 10,316,913  $  6,854,953
Cost of goods sold    16,897,588     9,755,254     8,515,313     5,519,194
                    ------------  ------------  ------------  ------------
  Gross profit         3,701,192     2,490,156     1,801,600     1,335,759

Operating Expenses
  Selling, general
   and administrative
   expenses            2,411,750     1,476,518     1,198,367       777,345
  Management and
   professional fees
   paid to shareholders
   (Note 14)             180,000       153,000        90,000        72,680
  Stock based
   compensation          115,220       110,000        83,100             -
  Depreciation           162,881         7,834        89,705         3,862

                    ------------  ------------  ------------  ------------
Total operating
 expenses              2,869,851     1,747,352     1,461,172       853,887
                    ------------  ------------  ------------  ------------

Net operating
 income                  831,341       742,804       340,428       481,872

Other Income
 (expenses)
  Interest income         11,157         3,950            44         2,812
  Interest expenses      (20,809)      (73,088)      (13,207)      (38,703)
  Interest expense
   paid to shareholders
   (Note 14)                   -       (17,446)            -             -
  Other income
   (expense)              (6,992)            -        (7,895)            -
  Exchange gain
   (loss)                  5,425          (693)        1,788          (691)


                    ------------  ------------  ------------  ------------
Total other
 expenses                (11,219)      (87,277)      (19,270)      (36,582)
                    ------------  ------------  ------------  ------------

Income before
 income taxes            820,122       655,527       320,830       445,290
Income taxes            (242,624)       (8,298)     (204,078)      (19,702)

                    ------------  ------------  ------------  ------------
Income after taxes       577,498       647,229       116,752       425,588
Net income (loss)
 from discontinued
 operations, net of
 tax                           -         8,132             -          (553)
                    ------------  ------------  ------------  ------------
Net income before
 noncontrolling
 interest                577,498       655,361       116,752       425,035
Profit share by
 noncontrolling
 interest               (122,610)            -       (97,453)            -

                    ------------  ------------  ------------  ------------
Net income               454,888       655,361        19,299       425,035

Other comprehensive
 income
  Foreign currency
   translation           107,656       244,440        86,081       146,017
  Comprehensive
   loss
   attributable
   to the
   noncontrolling
   interest              (13,571)            -           (19)            -
                    ------------  ------------  ------------  ------------
Comprehensive
 income             $    548,433  $    899,801  $    101,932  $    571,052
                    ============  ============  ============  ============

Basic Earnings per
 share              $       0.13  $       0.29  $       0.01  $       0.20
                    ============  ============  ============  ============

Basic Weighted avg.
 shares outstanding    3,555,855     2,202,490     3,617,512     2,158,525
                    ============  ============  ============  ============

Diluted Earnings
 per share          $       0.13  $       0.29  $       0.01  $       0.20
                    ============  ============  ============  ============

Diluted Weighted avg.
 shares outstanding    3,555,855     2,202,490     3,617,512     2,158,525
                    ============  ============  ============  ============




      WORLDWIDE ENERGY AND MANUFACTURING USA, INC. AND SUBSIDIARIES
              CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
                                (UNAUDITED)

                                                  For The Six Months Ended
                                                           June 30
                                                      2009         2008
                                                  -----------  -----------
Cash flows from operating activities
  Net income                                      $   454,888  $   655,361
Income attributable to non-controlling interest       122,610            -
Adjustments to reconcile net income to net cash
 used in operating activities:
  Depreciation                                        162,881       63,407
  Allowance for bad debts                             226,796      (20,000)
  Stock based compensation                            115,220      110,000

Changes in operating assets and liabilities:
  Accounts receivable                              (4,352,836)  (1,342,927)
  Notes receivable                                    165,476            -
  Inventories                                      (1,085,510)  (1,428,840)
  Income tax receivable                              (338,190)      15,769
  Advance to Suppliers                               (355,272)      69,565
  Related party payable                                 6,497            -
  Prepaid and other current assets                    116,897     (101,209)
  Accounts payable                                  5,096,026     (475,019)
  Accrued expense and acquisition cost payable       (434,784)     (48,783)
  Tax payable                                         117,220        6,221
  Customer deposits                                  (176,385)      (7,328)

                                                  -----------  -----------
Net cash used in operating activities                (158,466)  (2,503,783)
                                                  -----------  -----------

Cash flows from investing activities
  Loan to related parties                                   -     (816,704)
  Capital expenditures                               (847,124)    (173,142)
  Deposits paid for investment in subsidiaries     (1,120,193)     (40,680)


                                                  -----------  -----------
Net cash used in investing activities              (1,967,317)  (1,030,526)
                                                  -----------  -----------

Cash flows from financing activities
  Proceeds from issuance of common stock                    -    4,356,009
  Repayment of loans payable to shareholders          (60,024)     (84,577)
  Proceeds / (repayment) from line of credit        1,300,000   (1,234,882)
  Repayment of bank loans                             (88,373)        (884)

                                                  -----------  -----------
Net cash flows provided by financing activities:    1,151,603    3,035,666
                                                  -----------  -----------

Effect of exchange rate changes in cash and cash
 equivalents                                           (2,716)     126,509
                                                  -----------  -----------

Net decrease in cash and cash equivalents            (980,539)    (372,134)

Cash and cash equivalents- beginning of period      5,092,476    2,111,825
                                                  -----------  -----------

Cash and cash equivalents- end of period          $ 4,111,937  $ 1,739,691
                                                  ===========  ===========

Supplemental disclosure of non cash activities:
Stock based compensation expense                  $   115,220  $   110,000
                                                  ===========  ===========

Cash paid during the period for:
Interest paid in cash                             $    20,809  $    51,887
                                                  ===========  ===========
Income tax paid in cash                           $    47,850  $    35,758
                                                  ===========  ===========



This information is intended to be reviewed in conjunction with the Company's filings with the Securities and Exchange Commission.

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