3SOF

Fushi International, Inc. Completes $60 Million Hybrid Debt Financing with Citadel Equity Fund Ltd.
Monday January 29, 8:46 am ET


DALIAN, China, Jan. 29 /Xinhua-PRNewswire/ -- Fushi International, Inc. (the "Company") (OTC Bulletin Board: FSIN - News) today announced that it has closed a US$60 million financing with Citadel Equity Fund Ltd. ("Citadel"). In this transaction, Citadel purchased (i) US$40 million principal amount of guaranteed senior secured floating rate notes due 2012 and (ii) US$20 million principal amount of senior secured convertible notes due 2012, which are convertible into shares of the Company's common stock at an initial conversion price of US$7.00 per share. These notes are secured by the shares of the Company's wholly-owned subsidiary, Fushi Holdings Inc., a Delaware corporation. Citadel was also granted certain corporate governance rights over the Company and its subsidiaries. Merrill Lynch Far East Limited acted as the placement agent for this transaction.

Look at the chart again! Can it keep going?

Found the following numbers at http://www.fushiinternational.com/Manufacturing.aspx?p=Profitability

Fushi Profitability (millions)
                                2003   2004    2005      2006E      2007E      2008E
Sales                       $12.0  $15.7   $33.7     $70.9       $97.0       $127.2
Net Income              $3.6    $3.8    $7.8        $23.9       $33.0       $42.7
Profit Growth            N/A     5.50% 105.30% 206.40%  38.10%    29.40%

The number of shares outstanding is 22.8 million.  At PPS=$7.3  P/E is less than 10.   

I like what I see here. Their new building is capable of 5x expansion without additional capex. Plant is working two shifts and is above 95% utilization. Very important for a Chinese company is the fact they file a 10Q and are preparing  to apply for listing on NASD, which means they will be using gaap principles. Net income projected to be up 23.9m to 42.7 in 24 months. Some accumulation going on since there presentation yesterday.

Fushi International, Inc. Reports 2006 Fourth Quarter and Full Year Financial Results


2006 Full Year Results (audited)

For the year ended December 31, 2006, revenues increased 100.5 percent to $67.6 million from $33.7 million in 2005, driven by higher selling prices, increased sales volume, increased capacity utilization and an improvement in our product mix to higher-margin wire.

Net income increased 128.4 percent to $17.8 million as net margins increased by 320 basis points to 26.3 percent with respective weighted average fully diluted earnings per share of $0.84, based on 21.3 million shares compared to $7.8 million in net income and $0.50 in the year ago period, based on 15.7 million shares.

2007 Guidance

Supported by our recent $60 million financing, the Company has initiated a significant facility expansion with plans to more than double 2006 capacity by the end of 2007 through the addition of both coaxial and fine-wire bimetallic production lines. Specifically, we anticipate having forty to fifty regular CCA production lines by the end of 2007 with 24,000 to 30,000 tons of annual capacity. Management believes it will be able to produce and sell approximately 50 percent more bimetallic wire in 2007 than in 2006, which would equate to approximately 17,500 tons. The Company is providing guidance of at least $22.8 million in net income for 2007, which would equate to a $1.00 in diluted earnings per share and represent approximately a 20 percent increase over 2006.

FSIN needs to be moved out of the penny stocks board. Thanks Setravis.

Breakout!


http://stockcharts.com/h-sc/ui?s=FSIN&p=D&b=5&g=0&id=p58120307232

Quote from: BigSully1 on December 03, 2007, 12:40:30 PM
FSIN needs to be moved out of the penny stocks board. Thanks Setravis.

Breakout!


http://stockcharts.com/h-sc/ui?s=FSIN&p=D&b=5&g=0&id=p58120307232

closed up 15%.

Strong volume on another move higher today. This needs to be removed from penny stock board.

Up another 9% today on strong volume (usually very thinly traded.)

another 10% today.

recovering today (10%) after dump yesterday.

New High.

Is this slipping by radars because it's still under the "penny" stocks board. It hasn't mine. It's  listed on Nasdaq now and  up another 8% today. Can we get this onto the the stock picks board setravis?

Press Release Source: Fushi International, Inc.


/ C O R R E C T I O N -- Fushi International Inc./
Wednesday November 14, 8:26 am ET


Fushi (Nasdaq: FSIN - News) to conduct a conference call to discuss third quarter 2007 results today at 8:30 am ET, Wednesday, November 14, 2007, not "8:30 pm ET" as stated in "Fushi International Reports Third Quarter 2007 Financial Results" issued today at 7:45 pm ET.

    For more information, please contact:

     Nathan Anderson
     Director of Investor Relations
     Fushi International, Inc.
     Email: [email protected]

     Bill Zima & Ashley Ammon MacFarlane
     Integrated Corporate Relations
     Tel:   +1-203-682-8200

------

Fushi International Reports Third Quarter 2007 Financial Results

-- Revenues Increased 147% to $32 Million in 3Q07 ---- Net Income Increased to $8.2 Million, or 25.7% of Revenue --

DALIAN, China, Nov. 14 /Xinhua-PRNewswire-FirstCall/ -- Fushi International, Inc. (Nasdaq: FSIN - News), the leading global manufacturer of bimetallic wire used in a variety of telecommunication, power transmission and other electrical products, today announced financial results for the third quarter of 2007.


    Q3 Highlights
    -- Revenues increased 147% from last year to a record $32.0 million
    -- Gross margin improved to 32.9% from last year 30.9%
    -- GAAP net income increased 472.8% from last year to a record $8.2
       million
    -- Fully diluted EPS of $0.33 (year-on-year increase of 423.5%)

    Key Financial Metrics:
    (All numbers in USD millions, except per-share amounts)

                    Q3 2007       Q3 2006        % Change
    Revenue           32.0          13.0           147.1
    Gross Profit      10.5           4.0           163.3
    Operating Income   8.7           3.1           184.3
    Net Income         8.2           1.4           473.8
    EPS - Diluted     0.33          0.06           423.5

Revenues for the third quarter of 2007 increased 147% to $32.0 million, from $13.0 million in the prior year's quarter. Revenues in the quarter were driven by a higher average selling price and higher sales volume, higher copper prices, strong market demand, and new and expanded product applications. The average selling price improvement year-over-year resulted primarily from the increase of raw materials, particularly copper prices. Coaxial cable accounted for approximately 59.5% of sales; magnet wire for about 19.1% of sales; and braided wire for about 16% of sales. Flat wire, which the Company began shipping this quarter, accounted for 5.3% of total sales.

Gross profit increased by 163.3% year-over-year to $10.5 million. Gross margin of 32.8% was up from last year's 30.9%, due to improved product mix and gains from the fluctuation of copper prices. However, margins were down sequentially from 37.0% in the second quarter as current inventory costs increased as a result of higher raw material costs.

Operating expenses in the third quarter increased 94% to $1.8 million compared to $0.9 million in the prior year period. This increase was primarily a result of higher general and administrative expenses associated with the compliance of Sarbanes-Oxley. On a percentage basis, operating expenses decreased to 5.6% from 7.2%, as the company implemented cost- containment measures. Also included in the general and administrative expenses for the third quarter of 2007 was share-based compensation expense of $241,921, which was equivalent to 0.8% of net revenues.

Net income in the third quarter increased 473.8% to $8.2 million, or 25.7% of revenue, up from $1.4 million, or 11% of revenue last year. The higher net income was due to higher revenues and gross margins year-over-year, lower operating expenses, and a one-time charge incurred in last year's third quarter of $1.5 million associated with the issuance of registration rights penalty shares. Diluted earnings per share in the third quarter of 2007 was $0.33, versus $0.06 in the prior year period. The weighted average share count used to calculate diluted EPS was 25.5 million.

During the quarter, the company announced that it had acquired Copperweld Bimetallics, LLC a leading global manufacturer of bimetallic wire. The transaction was valued at USD$22.5 million, including $14.5 million in cash and the assumption of $8.0 million in debt. Subsequently, Copperweld's CEO Chris Finley was appointed to the role of Fushi's Chief Operating Officer, and James Todd, Copperweld's CFO was named Fushi's Controller.

Mr. Li Fu, Chairman and Chief Executive Officer of Fushi International commented, "We are pleased to report another quarter of continued growth in our business. More importantly, we believe that the combination of Fushi's and Copperweld's businesses position us as a domestic and international market leader in the bimetallic industry. We are well on our way to executing our strategic plan through technological innovation, manufacturing expertise, domestic and international marketing and branding and strong management."

Mr. Fu continued, "In the last few months, we have broadened our product line, significantly increased our production capacity, rounded out our management team, strengthened our market position and improved our balance sheet with a $39 million private placement. We believe these steps provide us with the competitive advantages we need to further strengthen ourselves as the dominant player in our markets."

Financial Expectations

For the full year 2007, the Company anticipates diluted earnings per share of approximately $0.86-$0.96, based on an estimated weighted diluted share count of 25.0 million shares. Fourth quarter results are expected to be impacted by roughly $0.16 in one-off transaction costs. For 2008, the Company expects fully diluted earnings per share of $1.50-$1.60, based on an estimated weighted diluted share count of 28.8 million shares.

Mr. Fu concluded, "We are excited about the integration of Copperweld and the benefits we expect from that integration. We remain confident that we have put in place a foundation for continued growth and financial flexibility. We believe that the combined company has significant potential, and that we have established ourselves as the leader in the world-wide bimetallic market. We have a lot of work to do in the coming quarters to integrate the companies, ramp up production and leverage our strategic position to increase market share and revenues, and return to strong sustainable margins."

Conference Call

The Company will conduct a conference call to discuss the third quarter 2007 results today, Wednesday, November 14, 2007 before the market open at 8:30 pm ET. Listeners may access the call by dialing 913-312-1411. A live webcast of the conference call will also be available at http://www.viavid.net . A replay of the call will be available from November 14, 2007 to December 14, 2007. Listeners may access the replay by dialing # 719-457-0820; passcode: 8453545.

About Fushi International

Fushi International, through its wholly owned subsidiary, Fushi International (Dalian), manufactures bimetallic composite wire products, principally copper clad aluminum wires ("CCA"). CCA, the company's core product, combines the conductivity and corrosion resistance of copper with the light weight and relatively low cost of aluminum. It is a cost-effective substitute for single copper wire in a wide variety of applications such as coaxial cable for cable television (CATV), signal transmission lines for telecommunication networks, distribution lines for electricity, electrical transformers, wire components for electronic instruments and devices. For more information on Fushi, visit the website: http://www.fushiinternational.com/ .

Safe Harbor Statement

This press release may include certain statements that are not descriptions of historical facts, but are forward-looking statements. Forward- looking statements can be identified by the use of forward-looking terminology such as "will," "believes," "expects" or similar expressions. These forward- looking statements may also include statements about our proposed discussions related to our business or growth strategy, which is subject to change. Such information is based upon expectations of our management that were reasonable when made but may prove to be incorrect.

All of such assumptions are inherently subject to uncertainties and contingencies beyond our control and upon assumptions with respect to future business decisions, which are subject to change. We do not undertake to update the forward-looking statements contained in this press release. For a description of the risks and uncertainties that may cause actual results to differ from the forward-looking statements contained in this press release, see our most recent Annual

Report filed with the Securities and Exchange Commission (SEC) on Form 10- K, and our subsequent SEC filings. Copies of filings made with the SEC are available through the SEC's electronic data gathering analysis retrieval system (EDGAR) at http://www.sec.gov .




                   FUSHI INTERNATIONAL, INC.  AND SUBSIDIARIES
                      CONSOLIDATED STATEMENTS OF INCOME AND
                           OTHER COMPREHENSIVE INCOME
      FOR THE THREE MONTHS AND NINE MONTHS ENDED SEPTEMBER 30, 2007 AND 2006
                                   (UNAUDITED)
                              Three months ended        Nine months ended
                                September 30,             September 30,
                              2007         2006         2007         2006
    REVENUES               $32,014,592  $12,956,092  $79,238,417  $45,881,256

    COST OF GOODS SOLD      21,481,175    8,955,882   51,367,707   28,477,095

    GROSS PROFIT            10,533,417    4,000,210   27,870,710   17,404,161

    OPERATING EXPENSE
     Selling expenses          189,625      152,045      558,735      401,294
     General and administrative
       expenses              1,609,612      775,459    5,079,188    2,262,160
     Total operating
       expense               1,799,237      927,504    5,637,923    2,663,454

    INCOME FROM OPERATIONS   8,734,180    3,072,706   22,232,787   14,740,707

    OTHER INCOME (EXPENSE)
     Interest income           565,383       30,344    1,074,837       42,775
     Interest expense      (1,361,261)    (318,608)  (4,309,376)    (832,172)
     Gain on derivative
      instrument               286,245           --    1,088,768           --
     Other income               14,077      236,002      188,693      556,724
     Other expense             (5,298)    (119,302)     (84,992)    (258,152)
     Registration rights
      penalty                       --  (1,466,250)           --  (1,466,250)
     Total other expense     (500,854)  (1,637,814)  (2,042,070)  (1,957,075)

    INCOME BEFORE INCOME
     TAXES                   8,233,326    1,434,892   20,190,717   12,783,632

    PROVISION FOR INCOME
     TAXES                          --           --           --      396,553

    NET INCOME               8,233,326    1,434,892   20,190,717   12,387,079

    OTHER COMPREHENSIVE
      INCOME
     Foreign currency
      translation
      adjustment             2,250,423      629,327    5,266,973    1,107,923
     Change in fair value
      of derivative
      instrument           (3,738,571)           --  (4,610,090)           --

    COMPREHENSIVE INCOME    $6,745,178   $2,064,219  $20,847,600  $13,495,002

    BASIC
     Earnings per share          $0.37        $0.07        $0.94        $0.62
     Weighted average
      number of shares      22,263,618   19,932,129   21,422,610   19,907,105

    DILUTED
     Earnings per share          $0.33        $0.06        $0.85        $0.55
     Weighted average
      number of shares      25,454,871   22,761,228   24,335,426   22,612,369



                   FUSHI INTERNATIONAL, INC.  AND SUBSIDIARIES
                           CONSOLIDATED  BALANCE SHEETS
                  AS OF SEPTEMBER 30, 2007 AND DECEMBER 31, 2006

                                   A S S E T S
                                               September 30,    December 31,
                                                        2007            2006
                                                  (Unaudited)
    CURRENT ASSETS:
     Cash                                      $  46,032,832    $ 20,493,551
     Accounts receivable, trade                   12,869,254       7,042,408
     Inventories                                  12,988,190       7,403,116
     Notes receivables                               106,720              --
     Other receivables and prepaid expenses        1,834,819         497,380
     Advances to suppliers                         9,246,772       3,390,917
     Cross currency hedge receivable                 286,245              --
       Total current assets                       83,364,832      38,827,372

    PLANT AND EQUIPMENT, net                      55,896,662      47,256,475

    OTHER ASSETS:
     Prepayment on land use right                  4,196,583              --
     Investment deposit                            3,000,000              --
     Advances to suppliers, noncurrent            31,012,693       4,559,357
     Intangible asset, net of accumulated
      amortization                                 5,564,471       5,518,931
     Deferred loan expense                         3,123,496              --
       Total other assets                         46,897,243      10,078,288

         Total assets                          $ 186,158,737    $ 96,162,135

   L I A B I L I T I E S    A N D    S H A R E H O L D E R S'   E Q U I T Y

    CURRENT LIABILITIES:
     Accounts payable, trade                   $   1,038,447    $  1,055,684
     Liquidated damage payable                            --       1,466,250
     Other payables and accrued liabilities          898,780         321,276
     Customer deposits                               349,557         531,065
     Taxes payable                                   840,863         982,345
     Short term bank loans                        11,872,600      12,504,135
     Current portion of long term bank loans      10,672,000              --
     Loan from shareholder                                --       3,911,256
       Total current liabilities                  25,672,247      20,772,011

    LONG TERM  LIABILITIES:
     Long term bank loans, net of current
      portion                                             --      10,256,000
     Notes Payable                                60,000,000              --
     Fair value of derivative instrument           4,610,090              --
         Total liabilities                        90,282,337      31,028,011

    SHAREHOLDERS' EQUITY:
     Preferred stock,$0.001 par value,
      5,000,000 shares authorized,
      no outstanding as
      of September 30, 2007 and December
      31, 2006.                                           --              --
     Common stock, $0.006  par value,
      100,000,000 shares
      authorized, 22,382,223 and
      20,046,162 shares issued and
      outstanding as of September
      30, 2007 and December 31, 2006,
      respectively.                                  134,294         120,277
     Additional paid in capital                   40,811,997      29,364,955
     Deferred stock option compensation          (1,566,383)              --
     Statutory reserves                            7,184,454       4,452,467
     Retained earnings                            45,955,432      28,496,702
     Accumulated other comprehensive income        3,356,606       2,699,723
       Total shareholders' equity                 95,876,400      65,134,124

         Total liabilities and shareholders'
          equity                              $  186,158,737   $  96,162,135



                   FUSHI INTERNATIONAL, INC.  AND SUBSIDIARIES
                      CONSOLIDATED STATEMENTS OF CASH FLOWS
              FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2007 and 2006
                                   (UNAUDITED)

                                                        2007            2006
    CASH FLOWS FROM OPERATING ACTIVITIES:

      Net income                                $ 20,190,717    $ 12,387,079
      Adjustments to reconcile net income to
       cash provided by (used in) operating
       activities:
          Depreciation                             2,029,646       1,545,520
          Amortization of intangibles                174,627         167,062
          Amortization of loan commission            491,178              --
          Amortization of stock option
          compensation                               887,080              --
          Gain on derivative instrument           (1,088,768)             --
        Changes in operating assets and
           liabilities:
          Accounts receivable                     (5,426,757)    (1,323,834)
          Inventories                             (5,175,451)    (1,879,011)
          Other receivables and prepayments       (1,306,764)    (3,300,663)
          Due from related parties                        --       3,352,072
          Notes receivables                         (104,512)             --
          Advance to suppliers                    (5,600,003)             --
          Accounts payable                           (58,813)      (783,559)
          Other payables and accrued
           liabilities                               570,231       (481,156)
          Customer deposits                         (198,848)        423,141
          Taxes payable                             (177,576)    (3,158,993)
          Liquidated damage payable                       --       1,466,250
            Net cash provided by operating
             activities                            5,205,987       8,413,908

    CASH FLOWS FROM INVESTING ACTIVITIES:
      Payment for Investment deposit              (3,000,000)             --
      Proceeds from derivative instrument            802,523              --
      Advance for purchase of land use right      (4,109,757)             --
      Purchase of property and equipment          (8,613,889)     (9,286,833)
      Advances for purchase of equipment         (25,724,917)             --
            Net cash used in investing
             activities                          (40,646,040)     (9,286,833)


    CASH FLOWS FROM FINANCING ACTIVITIES:
      Loan from shareholder                               --       4,450,000
      Repayment to shareholders                   (3,985,698)             --
      Proceeds from bank loans                    11,546,600      18,259,578
      Payments on bank loans                     (12,507,240)    (13,747,800)
      Net proceeds from convertible notes         56,400,000              --
      Proceeds from exercise of stock
       warrants                                    7,541,346          15,800
            Net cash provided by financing
             activities                           58,995,008       8,977,578

    EFFECT OF EXCHANGE RATE ON CASH                1,984,326         680,276

    INCREASE  IN CASH                             25,539,281       8,784,929

    CASH, beginning of period                     20,493,551       6,163,670


    CASH, end of period                         $ 46,032,832    $ 14,948,599



    For more information, please contact:

     Nathan Anderson
     Director of Investor Relations
     Fushi International, Inc.
     Email: [email protected]

     Bill Zima & Ashley Ammon MacFarlane
     Integrated Corporate Relations
     Tel:   +1-203-682-8200

Coverage initiated by Piper Jaffray with a "buy"