PUDC.OB

[Feng]

Press Release   Source: Puda Coal, Inc.

Puda Announces Fourth Quarter and 2006 Year End Results
Tuesday April 17, 8:33 am ET
Record Full Year Revenue Increases 166% Full Year Adjusted Net Income Climbs 123% to $12.5 Million

TAIYUAN, China, April 17 /Xinhua-PRNewswire-FirstCall/ -- Puda Coal, Inc. (OTC Bulletin Board: PUDC - News; "Puda" or "the Company"), a leading supplier of China's high grade metallurgical coking coal used to make coke for the purposes of steel manufacturing, today announced its financial results for the fourth quarter and year ended December 31, 2006.

   Fourth Quarter 2006 Highlights
    -- Fourth quarter revenue reached a record $ 43.4 million, up 110% from
       the fourth quarter of 2005
    -- Operating income totaled $7.1 million, up 78% increase from the
       fourth quarter of 2005
    -- Net income rose to $6.0 million, or $0.07 per fully diluted share
    -- Adjusted net income totaled $4.0 million, or $0.05 per diluted share,
       up 60% from adjusted net income of $2.5 million in the fourth quarter
       of 2005
    -- Sales of cleaned coal totaled 548,000 metric tons (MT), up 105%
       from the fourth quarter of 2005
    -- Average selling price of cleaned coal was $78 per ton, compared to
       $77 per ton in the fourth quarter of 2005

   2006 Full Year Highlights
    -- Revenue climbed to $137.8 million, up 166% from 2005
    -- Operating income rose to $22.8 million, up 148% from 2005
    -- Net income was $1.4 million, up 40% from 2005
    -- Adjusted net income totaled $12.5 million, or $0.16 per fully
       diluted share, up 123% from adjusted net income of $5.6 million, or
       $0.07 per diluted share, in 2005
    -- Sales of cleaned coal reached 1.8 million metric tons, up 165% from
       2005
    -- Average selling price of cleaned coal was $78 per ton, up from $77
       per ton in 2005
    -- Opened Zhong Yang coal washing plant, adding 1.2 million MT in total
       annual capacity
    -- Added Xuanhua Steel Group and Gengyang Coal as new customers

Fourth Quarter 2006 Results

"Our strong fourth quarter performance was driven by strong demand from new and existing customers. The addition of our new coal washing plant in Zhong Yang provided us the capacity to meet this demand," said Mr. Zhao Ming, Chairman and Chief Executive Officer of Puda Coal. "Our margins were impacted by slightly higher prices for raw coal, driven by strong industry demand for metallurgical quality coking coal. Competitive pressures have limited our ability to increase selling prices this year, and our current expectations are for margins to stabilize at current levels."

For the quarter ended December 31, 2006, total revenue was $43.4 million, up 110% from $20.7 million in the fourth quarter of 2005. This strong revenue growth was driven by larger customer order volume. Sales of cleaned coal were 548,000 MT in the fourth quarter of 2006, up from 267,000 MT in the same period last year.

Gross profit for the quarter was $8.9 million, up 88.7% from gross profit of $4.7 million in the fourth quarter of 2005. Gross margin was 20.6% in the quarter, down from 22.9% in the same period last year. This decline was primarily due to the higher prices of raw coal, as well as higher depreciation expenses associated with the new coal washing plant in Zhong Yang. The average selling price of cleaned coal was approximately $78 per ton in the fourth quarter of 2006, up from $77 per ton in the fourth quarter of 2005.

Operating expenses were $1.8 million, or 4.1% of revenue, up 149.9% from $720,000, or 3.5% of revenue, in the fourth quarter of 2005. This increase was primarily due to higher expenses from new business, including expanding the sales force to support increased capacity. In addition, the Company also incurred higher legal and professional fees as a result of being a public company.

Operating income was $7.1 million, or 16.4% of revenue, up 77.7% from $4.0 million, or 19.4% of revenue, in the fourth quarter of 2005.

Net income was $6.0 million, or $0.07 per fully diluted share, compared to a net loss of $2.2 million, or $0.03 per fully diluted share, in the fourth quarter of 2005. Adjusting net income to exclude non-cash debt financing and other expenses related to the Company's convertible debt and warrants, adjusted net income was $4.0 million, or $0.05 per fully diluted share, in the fourth quarter of 2006, up 60% from adjusted net income of $2.5 million, or $0.03 per diluted share in the fourth quarter of 2005.

At year end, total annual production capacity was 2.7 million MT, up from 1.5 million MT at the end of 2005. This increase was due to the Company's new coal washing facility in Zhong Yang, which commenced operations in March 2006 and has annual production capacity of 1.2 million metric tons. The plant was operating at full capacity at the end of 2006.

Full Year 2006 Results

Net revenue was $137.8 million in the year ended December 31, 2006, up 166.4% from $51.7 million in the year ended December 31, 2005. Full-year sales of cleaned coal increased 165% to 1.8 million MT in the year ended December 31, 2006, compared to 680,000 MT in the year ended December 31, 2005. The average selling price of cleaned coal was $78 per ton, up from $77 per ton in 2005. Gross profit was $28.4 million, or 20.6% of revenue, up 143.4% from $11.7 million, or 22.6% of revenue, in 2005. Operating income was $22.8 million, or 16.5% of revenue, up 148.0% from $9.2 million, or 17.8% of revenue, in 2005. Net income was $1.4 million, or $0.02 per fully diluted share, up 40.3% from $1.0 million, or $0.01 per fully diluted share, in 2005. Adjusting net income to exclude non-cash debt financing and other expenses related to the Company's convertible debt and warrants, adjusted net income was $12.5 million, or $0.16 per fully diluted share in 2006, up 123% from $5.6 million, or $0.07 per fully diluted share, in 2005.

Financial Condition

As of December 31, 2006, Puda Coal had $24.9 million in cash and cash equivalents, $36.5 million in working capital and a current ratio 3.8:1. Puda Coal generated $11.3 million in cash flow from operations in 2006, compared to $1.6 million in 2005. Long-term debt totaled $13.5 million, and shareholders' equity stood at $23.0 million at year end.

Business Outlook

The Chinese steel industry continues to experience a strong outlook for growth. Several huge infrastructure projects and a prosperous real estate market are expected to drive demand for high grade metallurgic cleaned coking coal in the near term, while China's western development plan will drive demand in the long term. In order to take advantage of these significant growth opportunities, Puda Coal intends to increase its annual production capacity to 4.0 million MT by the end of 2007. This will allow the Company to fill larger orders from existing clients, and puts it in a better position to win new customers. The Company also plans to increase its sales force in its efforts to win additional new customers.

Puda expects that its revenues for the full year 2007 will be in the range of $210 to $220 million, and full year 2007 operating income between $34 million and $36 million.

"In 2007, we look forward to another year of strong revenue growth and profitability. We will concentrate on increasing capacity to meet demand, expanding our sales force and improving our operational efficiency by implementing our advanced mix control technology and management system at each of our coal washing facilities," said Mr. Zhao. "We believe we are well positioned relative to our competitors, and we expect to increase our market share as we continue to build our corporate and brand identity as the premier high grade metallurgical coking coal supplier in China."

Subsequent Events

On March 21, 2007, Puda Coal filed an amendment to its registration statement on form SB-2/A filed with the U.S. Securities and Exchange Commission related to the sale of up to 47,764,373 shares of its common stock by certain existing holders of its securities. Shares registered in the filing include 8,250,000 shares of common stock that that may become issuable upon conversion of principal on convertible promissory notes, related warrants to purchase 21,050,000 shares, warrants issued to the placement agent, its employees and other persons acting on behalf of the placement agent to purchase 135,085 shares, and 13,854,288 shares of Common Stock issued upon conversion of the notes and exercise of the warrants. The Company will respond diligently to any and all SEC comments as they are received, but can not give any estimate as to when it expects the registration statement to become effective.

This press release shall not constitute an offer to sell or a solicitation of an offer to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

Conference Call

The Company will host a conference call at 9:00 am EDT on Tuesday, April 17, 2007, to discuss results for the fourth quarter and year ended December 31, 2006. To participate in the conference call, please dial the following number five to ten minutes prior to the scheduled conference call time: (888) 481- 7939. International callers should dial (617) 847-8707. The passcode for the call is 69973993. If you are unable to participate in the call at this time, a replay will be available on Tuesday, April 17, at 11:00 am EDT, through, Tuesday, April 24 at 11:00 am EDT. To access the replay, dial (888) 286-8010. International callers should dial (617) 801-6888. The conference passcode is 60397597.

Use of Non-GAAP Financial Information

GAAP results for the fourth quarter and full years ended December 31, 2006 and December 31, 2005 include certain non-cash debt financing and other expenses related to the Company's convertible notes and warrants. To supplement the Company's condensed consolidated financial statements presented on a GAAP basis, the Company has provided non-GAAP financial information excluding the impact of these items in this release. The Company's management believes that these non-GAAP measures provide investors with a better understanding of how the results relate to the Company's historical performance. A reconciliation of adjustments to GAAP results appears below. This additional non-GAAP information is not meant to be considered in isolation or as a substitute for GAAP financials. The non-GAAP financial information that the Company provides also may differ from the non-GAAP information provided by other companies.

About Puda Coal, Inc.

Puda Coal, through its affiliates and controlled entities, supplies premium grade coking coal to the steel making industry for use in making coke. The Company currently possesses 2.7 million metric tons of annual coking coal cleaning capacity, and management believes it is the largest coking coal cleaning Company in terms of capacity in Shanxi Province, China. hanxi Province provides 20-25% of China's coal output and supplies nearly 50% of China's coke.

FORWARD-LOOKING STATEMENTS

The information contained herein includes forward-looking statements. These statements relate to future events or to our future financial performance, and involve known and unknown risks, uncertainties and other factors that may cause our actual results, levels of activity, performance, or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by these forward- looking statements. You should not place undue reliance on forward-looking statements since they involve known and unknown risks, uncertainties and other factors which are, in some cases, beyond our control and which could, and likely will, materially affect actual results, levels of activity, performance or achievements. Any forward-looking statement reflects our current views with respect to future events and is subject to these and other risks, uncertainties and assumptions relating to our operations, results of operations, growth strategy and liquidity. We assume no obligation to publicly update or revise these forward-looking statements for any reason, or to update the reasons actual results could differ materially from those anticipated in these forward-looking statements, even if new information becomes available in the future. The safe harbor for forward-looking statements contained in the Securities Litigation Reform Act of 1995 protects companies from liability for their forward-looking statements if they comply with the requirements of the Act.

                         - FINANCIAL TABLES FOLLOW-



                              PUDA COAL, INC.
                   CONSOLIDATED STATEMENTS OF OPERATIONS
       (In thousand of United States dollars, except per share data)


                                For the three months   For the years ended
                                       ended                December 31,
                                    December 31,
                                     2006      2005        2006        2005
                              (unaudited)(unaudited)   (audited)   (audited)

   Net revenue                     43,407     20,654     137,771     51,710
   Cost of revenue                (34,482)   (15,924)   (109,381)   (40,047)
   Gross profit                     8,925      4,730      28,390     11,663

   Operating expenses
   Selling expenses                 1,039        236       3,231        791
   General and administrative
    expenses                          760        484       2,387        789
   Other operating expenses            --         --          --        902

   Total operating expenses         1,799        720       5,618      2,482

   Income from operations           7,126      4,010      22,772      9,181

   Gain on short-term investments      --         --          --          6

   Interest income                     21          9          59         12

   Interest expense                (2,085)      (531)     (4,441)      (531)

   Debt financing costs            (1,156)    (4,964)    (10,669)    (4,964)

   Derivative unrealized fair
    value gain                      4,564        700       1,237        700

   Income before income taxes       8,470       (776)      8,958      4,404

   Income taxes                    (2,474)    (1,396)     (7,604)    (3,439)

   Net income                       5,996     (2,172)      1,354        965

   Other comprehensive income
   Foreign currency translation
    adjustment                        437         18         985        154

   Comprehensive income             6,433     (2,154)      2,339      1,119



   Earnings per share
   -Basic                           $0.07     ($0.03)      $0.02      $0.01
   -Diluted                         $0.07     ($0.03)      $0.02      $0.01
   Weighted average shares
    outstanding
   -Basic                      86,821,002 74,544,565  80,167,110 73,950,274
   -Diluted                    86,830,685 78,170,327  80,176,793 77,576,036

   Net income                       5,996     (2,172)      1,354        965

   Less: Option holder
    preference dividend                                              (2,717)

   Undistributed Earnings           5,996     (2,172)      1,354     (1,752)



                              PUDA COAL, INC.
                 RECONCILIATION OF NON-GAAP FINANCIAL DATA


   Adjusted Net income                 Q4 2006         Q4 2005
   ($ in thousands except per share
    data)
                                     Net    Diluted  Net      Diluted
   Net Income (Loss) Diluted EPS    Income    EPS   Income      EPS
   Adjusted Amount                   3,957    0.05   2,509       0.03
   Adjustments
      Non cash debt financing
       costs (1)                       773    0.01   4,964       0.06
      Unrealized derivative fair
       value gain/Loss (2)          (4,565)  (0.05)   (700)     (0.01)
      Discount on converted shares
       and exercised warrants(3)     1,753    0.02     417       0.01
   Amount per consolidated
    statement of operations          5,996    0.07  (2,172)     (0.03)

   (1) Non cash debt financing costs for Q4 2006 includes amortization of
       debt issue costs of $17,000, amortization of discount on convertible
       notes and warrants of $756,000, Non cash debt financing costs for Q4
       2005 includes amortization of debt issue costs of $739,000,
       amortization of discount on convertible notes and warrants of
       $4,225,000
   (2) Derivative unrealized fair value gain for Q4 2006 was 4,564,000,
       Derivative unrealized fair value gain for Q4 2005 was 700,000
   (3) Discount on converted shares and exercised warrants for Q4 2006 was
       1,753,000, Discount on converted shares and exercised warrants for Q4
       2005 was 417,000

   Adjusted Net income                 FY 2006          FY 2005
   ($ in thousands except per share
    data)
                                     Net    Diluted  Net      Diluted
   Net Income (Loss) Diluted EPS    Income    EPS   Income      EPS
   Adjusted Amount                  12,480    0.16   5,646       0.07
   Adjustments
      Non cash debt financing
       costs (1)                     9,465    0.12   4,964       0.06
      Unrealized derivative fair
       value gain/Loss (2)          (1,237)  (0.02)   (700)     (0.01)
      Discount on converted shares
       and exercised warrants(3)     2,898    0.04     417       0.01
   Amount per consolidated
    statement of operations          1,354    0.02     965       0.01

   (1) Non cash debt financing costs for FY 2006 includes amortization of
       debt issue costs of $838,000, amortization of discount on convertible
       notes and warrants of $8,627,000, Non cash debt financing costs for FY
       2005 includes amortization of debt issue costs of $739,000,
       amortization of discount on convertible notes and warrants of
       $4,225,000
   (2) Derivative unrealized fair value gain for FY 2006 was 1,237,000,
       Derivative unrealized fair value gain for FY 2005 was 700,000
   (3) Discount on converted shares and exercised warrants for FY 2006 was
       2,898,000, Discount on converted shares and exercised warrants for
       FY 2005 was 417,000



                              PUDA COAL, INC.
                         CONSOLIDATED BALANCE SHEET
                   (In thousand of United States dollars)


                                                December 31,     December 31,
                                                      2006             2005
   ASSETS
   CURRENT ASSETS
   Cash and cash equivalents                        24,943           12,067
   Restricted cash                                     233              615
   Accounts receivable, net                          7,186            4,224
   Other receivables
     - Related parties                                   9               17
   -  Third parties                                     40               36
   Advances to suppliers
     - Related parties                                 602            2,959
     - Third parties                                   538
   Deferred charges                                    171            4,594
   Inventories                                      15,663            7,559

   Total current assets                             49,385           32,071

   PROPERTY, PLANT AND EQUIPMENT, NET                9,870           10,823

   INTANGIBLE ASSETS, NET                            3,729            3,807

   TOTAL ASSETS                                     62,984           46,701

   LIABILITIES AND STOCKHOLDERS'
   EQUITY
   CURRENT LIABILITIES
   Current portion of long-term debt
     - Related party                                 1,300            1,300
   Accounts payable
     - Related party                                   221              154
     - Third parties                                 2,531            1,172
   Other payables
     - Related party                                   901              874
     - Third parties                                 2,113              708
   Accrued expenses                                    951              363
   Income taxes payable                              2,485            1,397
   VAT payable                                       1,204              317
   Distribution payable                              1,026              992
   Penalty payable                                     204               --

   Total current liabilities                        12,936            7,277

   LONG-TERM LIABILITIES
   Long-term debt
     - Related party                                10,400           11,700
   Convertible notes                                 3,108            1,917
   Derivative conversion feature                     2,406            5,720
   Derivative warrants                               8,380           11,288

   Total long-term liabilities                      24,294           30,625

   TEMPORARY EQUITY
   Option to buy-out Shanxi Coal                     2,717            2,717

   STOCKHOLDERS' EQUITY
   Preferred stock, authorized 5,000,000
    shares, par value $0.01, issued and
    outstanding Nil                                     --               --
   Common stock, authorized 150,000,000
    shares, par value $0.001, issued and
    outstanding 92,881,301                              93               75
   Paid-in capital                                  16,506            4,625
   Statutory surplus reserve fund                    1,366            1,366
   Retained earnings                                 3,933            2,579
   Accumulated other comprehensive income            1,139              154
   Total stockholders' equity                       23,037            6,082

   TOTAL LIABILITIES AND STOCKHOLDERS'
        EQUITY                                     $62,984          $46,701



                              PUDA COAL, INC.
                   CONSOLIDATED STATEMENTS OF CASH FLOWS
               For the years ended December 31, 2006 and 2005
                   (In thousand of United States dollars)


                                                    Years ended December 31,
                                                           2006        2005
   CASH FLOWS FROM OPERATING ACTIVITIES:
   Net income                                             1,354         965
   Adjustments to reconcile net income to  net cash
    provided by operating activities

      operating activities
   Amortization of land-use rights                           78           9
   Depreciation                                             953         183
   Provision for doubtful debts                              10           5
   Amortization of debt issue costs                         838         739
   Amortization of discount on convertible notes and
    warrants                                              8,627       4,225
   Derivative unrealized fair value gain                 (1,237)       (700)
   Discount on converted shares and exercised
    warrants                                              2,898         417
   Issue of common stock for services                        21          --
   Issue of common stock for penalty                      1,000          --
   Changes in operating assets and liabilities:
     Decrease in short-term investments                      --         117
     Increase in accounts receivable                     (2,972)     (1,507)
     Decrease in notes receivable                            --         638
     Decrease in other receivables                            4       2,251
     Decrease/(increase) in advances to suppliers         1,819      (2,430)
     Increase in inventories                             (8,104)     (3,994)
     Increase in accounts payable                         1,426         610
     Increase in accrued expenses                           588         115
     Increase in other payables                           1,432       1,094
     Increase/(decrease) in income tax payable            1,088        (611)
     Increase in VAT payable                                887          66
     Increase in penalty payable                            204          --
     Decrease/(increase) in restricted cash                 382        (615)

   Net cash provided by operating activities             11,296       1,577

   CASH FLOWS FROM FINANCING ACTIVITIES:
   Exercise of warrants                                   1,860          --
   Repayment of long-term debt                           (1,300)         --

   Issue of convertible notes                                --      12,500
   Debt issue costs                                          --      (1,583)
   Shareholder contribution                                  --          50
   Distribution paid to owners of a subsidiary               --        (947)

   Net cash provided by financing activities                560      10,020

   Effect of exchange rate changes on cash                1,020         157

   Net increase in cash and cash equivalents             12,876      11,754
   Cash and cash equivalents at beginning of year        12,067         313

   Cash and cash equivalents at end of year             $24,943     $12,067


   For more information, please contact:

   Investor Relations Contact:
    Crocker Coulson, President
    CCG Elite
    Tel:   +1-646-213-1915
    Email: [email protected]

   Company Contact:
    Wenwei Tian, Director of Investor Relations
    Puda Coal, Inc.
    Tel:   +86-351-228-1302
    Email: [email protected]


Source: Puda Coal, Inc.

[kpusan]

Very nice earnings

Added yesterday @$1.17 and more today on the dip $1.34  Seems to be hitting a wall at $1.50.  If you are in good luck.

[fous]

in at 1.20 and 1.35 as well

Article i wrote:
http://biz.yahoo.com/seekingalpha/070419/32813_id.html?.v=1

[cipisek]

PUDC

[kpusan]

AMAZING end of day run with large volume 

I have three positions now $1.17 .. $1.34 .. and bought more when it took out that $1.50 wall in more at $1.57.

I am done buying. If this holds looking for $2.50 for now

Good Luck

BTW also in KDKN in since $2.27 .. scratching my head regarding recent article giving this one a $49.00 price target LOL

http://biz.yahoo.com/bw/070425/20070425005313.html?.v=1

Makes me wonder if this is a scam

[vivdcosta]

Check out Puda !!!  up 25%
Someone's buying big. the last 5 million shares were bought in the last 1 hour. Maybe some big news coming. Any ideas anyone?

[tokyopua]

Very nice move today, I wasnt watching it for the last few hours, but what a great surprise when I checked again at the end of the day, Im up over 70% in just a few days on this one

Yesterday was a G-spot breakout, and wow did it prove that theory today!  I actually thought it might move down today because there were mulitiple shareholder sell registrations that happenend today, but the G-spot stimulation won out lol. 

Looks like it has more juice given the strong marubozu it posted today.  Its also a Three White Soldiers candle pattern which is bullish as well, so more upside from here.

Go PUDC!  And mondo applauds to Fous for pointing this stock out to me on his site 

[la-onda]

in @ 2.01$

fyi:
China's Puda Coal eyes Nasdaq listing
Mon Apr 30, 2007 8:53AM BST
By Kirby Chien
BEIJING, April 30 (Reuters) - Puda Coal Inc. (PUDC.OB: Quote, Profile,
Research, a leading supplier of coking coal in China, said on Monday it plans to raise $40-$50 million by the end of 2007 through a U.S. listing as it seeks to acquire a coal mine and a steel maker.
The company has not yet hired an underwriter for the deal but is in consultations and looking to list on either the Nasdaq or the American Stock Exchange, Tian Wenwei, a company vice president, told Reuters in an interview.
"We hope to raise between $40-$50 million before the end of the year," said Tian. In addition to a possible acquisition of a coal mine to help secure a steady supply of the black rock, the company was also looking downstream at steel makers. Puda planned to invest $50-$60
million both this year and in 2008, mostly on acquisitions, said Tian. "Our investment will remain high in 2008 about the same as the $50-$60 million we plan to spend this year," he said. The executive said Puda was focusing on acquisitions in its home-base of Shanxi, but would not exclude suitable targets in other provinces. Puda is 56 percent owned by Chairman Zhao Ming, while another 14 percent is owned by his older brother Zhao Yao. The elder Yao also owns a coal mine in Shanxi, which supplies Puda with about 15 percent of its coking coal needs, said Tian.

FOREIGNER INVESTORS

Puda's remaining 30 percent of shares are owned by foreigners, mostly funds such as Crestview Capital, Silicon Prairie and Barron Partners, said Tian. Puda expects net profit this year to jump 60 percent to $20 million, as the country's demand for steel remains strong. Puda Coal supplies premium grade coking coal to companies for making coke, which is then used to produce steel. China's clampdown on illegal coal mines and high polluting industries bodes well for companies such as Puda, which uses mostly imported equipment from Germany to process coking coal, said Tian. "Our technology can lower the level of pollution," he said. The company is based in Shanxi province and has the capacity to process 4.0 million metric tonnes of coking coal annually. It aims to boost capacity to 5-6 million metric tonnes in the next couple of years. Shanxi accounts for about a quarter of China's coal output and supplies nearly half of the country's coke. China's economy grew at 11.1 percent in the first quarter, fueled by spending on huge infrastructure projects and property development, both of which require large amounts of steel. (US$=7.72 yuan)
link:
http://uk.reuters.com/article/oilRpt/idUKPEK8822020070430

[la-onda]

nice BO 

PUDC chart & slides update (please download)

[la-onda]

fyi:
PUDC: Q1 EPS 4c vs (9c) EPS +144% Y/Y
Monday , May 21, 2007 15:21ET

QUARTER RESULTS
Puda Coal, Incorporated (PUDC) reported Q1 results ended March 2007. Q1 Revenues were $37.42M; +80.16% vs yr-ago. Q1 EPS was 4c; +144.44% vs yr-ago.

Q1 RESULTS      Reported      Year-Ago     Y/Y Chg      Estimate    SURPRISE
----------  ------------  ------------  ----------  ------------  ----------
Revenues:        $37.42M       $20.77M     +80.16%           N/A         N/A
----------  ------------  ------------  ----------  ------------  ----------
EPS:                  4c          (9c)                 +144.44%           N/A         N/A


Puda Coal Announces First Quarter 2007 Earnings
Tuesday , May 22, 2007 08:30ET

TAIYUAN, Shanxi, China, May 22 /Xinhua-PRNewswire-FirstCall/ -- Puda Coal, Inc. (OTC Bulletin Board: PUDC) (''Puda'' or ''the Company''), a leading supplier of China's high grade metallurgical coking coal used to make coke for the purposes of steel manufacturing, today announced its financial results for the first quarter ended on March 31, 2007.

    First Quarter 2007 Highlights
    -- First quarter revenue reached a record $37.4 million, up 80% from the
       first quarter of 2006
    -- Operating income totaled $6.3 million, up 66% from the first quarter of
       2006
    -- Net income rose to $3.8 million, or $0.04 per diluted share, compared
       to a net loss of $6.4 million in the first quarter of 2006
    -- Adjusted net income totaled $4.0 million, or $0.04 per diluted share,
       up 79% from adjusted net income of $2.2 million in the first quarter of
       2006
    -- Sales of cleaned coal totaled 467,000 tons, up 75% from the first
       quarter of 2006
    -- Average selling price of cleaned coal was $80 per ton, slightly down
       from $81 per ton in the comparable period of 2006
    -- Renewed sales contract with the largest two clients: Baotou Steel Group
       and Xuanhua Steel Group

First Quarter 2006 Results

''While the first quarter is one of our seasonally slowest quarters, our results reflected favorable cleaned coal market conditions and the positive impact of renewed contracts with several of our customers. Our margins were impacted by slightly higher prices of raw coal, but the average selling prices of our cleaned coal product were relatively stable. During the quarter, we increased our inventory of raw coal in order to mitigate the impact of higher raw coal price,'' said Mr. Zhao Ming, chairman and chief executive officer of Puda Coal, Inc.

''During the first quarter, we began implementing our advanced mix control technology and management systems at our Zhongyang plant, which will help reduce our costs while maintaining high quality,'' stated Mr. Zhao.

Net revenue for the first quarter was $37.4 million, an increase of 80.0% from $20.8 million in the first quarter of 2006. The increase in net revenue was the result of strong market demand for high grade cleaned coal and relatively stable selling prices for cleaned coal. Sales of cleaned coal increased approximately 200,000 MT from approximately 267,000 MT in the three months ended March 31, 2006 to approximately 467,000 MT in the three months ended March 31, 2007. The increase in tonnage sales was primarily due to increased orders of cleaned coal from existing customers. The selling price of cleaned coal was approximately $80 per ton (after adjusting for exchange rate differences), down slightly from $81 per ton in the comparable period of 2006.

Gross profit for the first quarter was US$7.5 million, an increase of 66% from the comparable period in 2006. Gross margin for the first quarter of 2007 was 20.1%, slightly lower than the gross margin of 21.7% in the first quarter of 2006. The decrease was due to an increase in the average price of raw coal from $44 per ton in the three months ended March 31, 2006 to approximately $47 per ton in the three months ended March 31, 2007.

Operating expenses for the first quarter were $1.2 million, up 68% from $0.7 million in the first quarter of 2006. The increase was due to higher selling and marketing expenses related to new market development and expansion of the Company's sales force. As a percentage of revenue, operating expenses were 3.2% in the first quarter of 2007, compared to 3.4% in the same quarter last year, reflecting operational efficiencies as the Company has grown in scale.

Operating income was $6.3 million, up 66% from $3.8 million in the first quarter of 2006.

Net income for the first quarter of 2007 was $3.9 million or $0.04 per basic and diluted basis, versus a net loss of $6.4 million, or $0.09 per share per basic and diluted share in the comparable period of 2006. Adjusting net income to exclude non-cash debt financing and other expenses related to the Company's convertible debt and warrants, adjusted net income was $4.0 million, or $0.04 per fully diluted share, in the first quarter of 2007, up 79% from adjusted net income of $2.2 million, or $0.03 per diluted share in the first quarter of 2006.

Financial Condition

As of March 31, 2007, Puda Coal had $27.4 million in cash and cash equivalents, approximately $40.4 million in working capital and a current ratio 4.0:1. Puda Coal generated $2.4 million in cash flow from operations in the quarter ended at March 31, 2007, compared to $5.6 million in the first quarter of 2006. Inventory increased $1.9 million to $17.5 million from $15.7 million at December 31, 2006, as the Company increased its purchases of raw coal in an effort to minimize the impact of rising prices. Long-term debt totaled $10.1 million, excluding current portion, and shareholders' equity stood at $28.7 million at March 31, 2007.

Business Outlook

The Company anticipates continued strong demand for high grade metallurgic cleaned coal driven by large infrastructure projects, a prosperous national real estate market as well as the ongoing western development plan. Puda Coal plans to increase its annual production capacity to 4.0 million by the end of 2007 and conduct technical upgrades to all coal washing plants.
''During the first quarter, we began implementing our advanced mix control technology and management system at our Zhongyang plant, which will help reduce our costs without sacrificing quality. These improvements should help us maintain our margins at current levels despite increases in the price of coal,'' stated Mr. Zhao. ''In the coming months, we plan to acquire another coal mine to increase our capacity to meet demand and increase our market share.'' Puda Coal expects revenues for the full year 2007 to be in the range of $210 to $220 million, and full year 2007 operating income between $34 million and $36 million.

[la-onda]

fyi:
PUDC: Short Interest UP 233.5% to 355.5K in May 2007
Friday , May 25, 2007 01:19ET

According to new short interest data from OTCBB.com, short interest for Puda Coal, Incorporated (OTCBB: PUDC) INCREASED 233.5% to 355,502 shares for the month ended mid-May, 2007.

SYMBOL          APRIL             MAY          CHANGE           %CHANGE       DAYS/COVER
--------   -------------   -------------   -------------  ------------  ----------
PUDC             106,583         355,502        +248,919      +233.54%           1

Based on PUDC's 20-day average daily share volume of 2,674,760, it would require approximately 1 day(s) of buying to cover this short interest.


nice rebound 

[hellenkeller]

trying to break out of 2.50. If it does it can be at 3 dollars real quick

[la-onda]

is this the bottom?

Puda Coal Announces Third Quarter Results
Friday , November 16, 2007 08:29ET

TAIYUAN, China, Nov. 16 /Xinhua-PRNewswire-FirstCall/ -- Puda Coal, Inc. (OTC Bulletin Board: PUDC) (''Puda Coal'' or the ''Company''), a leading supplier of China's high grade metallurgical coking coal used to make coke for the purposes of steel manufacturing, today announced its financial results for the quarter ended September 30, 2007.

    Third Quarter 2007 Highlights
    -- Third quarter revenue was  $40.5 million, down 5% from the third
       quarter of 2006
    -- Operating income totaled $5.5 million, down 23% from the third quarter
       of 2006
    -- Net income was $3.4 million, or $0.03 per fully diluted share, up 55%
       from the third quarter of 2006
    -- Sales of cleaned coal totaled 492,000 metric tons (MT), down 10% from
       the third quarter of 2006
    -- Average selling price of cleaned coal was $81 per ton, unchanged from
       the third quarter of 2006
    -- Streamlined corporate structure at recommendation of independent Audit
       committee
    -- Enhanced corporate governance by establishing Compensation and
       Nominating and Corporate Governance committees
    -- Signed letter of intent to acquire Jingle Muguashan coal mine in Jingle
       County
    -- Engaged Deloitte & Touche to assist with Sarbanes-Oxley compliance

''We achieved modest growth in revenue and operating income from the second quarter of 2007. However, we faced significant competition during the quarter, which resulted in lower tonnage sales year-over-year. This, combined with higher raw coal prices negatively impacted our margins,'' commented Mr. Zhao Ming, Chairman and Chief Executive Officer of Puda Coal.

Results for the Third Quarter 2007

For the quarter ended September 30, 2007, net revenue was $40.5 million, down 5.0% from $42.7 million in the third quarter of 2006. The revenue decline was mainly due to increased competition. Sales of cleaned coal were 492,000 MT in the third quarter of 2007, down from 546,000 MT in the same period last year. The average selling price was approximately $81 (after adjusting for exchange rate differences), unchanged from the same quarter of 2006.

Gross profit for the quarter was $6.7 million, down 25.4% from gross profit of $9.0 million in the third quarter of 2006. Gross margin was 16.4% in the quarter, down from 20.9% in the same period last year. The decrease was due to an increase in the average price of raw coal from $47 per ton in the third quarter of 2006 to approximately $50 per ton in the current quarter.

Operating expenses for the third quarter of 2007 were $1.1 million, down 35.7% from the same period last year, due to lower legal and professional fees. Selling expenses also declined, due to lower shipping charges from decreased tonnage sales to customers outside Shanxi Province in the third quarter of 2007. As a percentage of revenue, operating expenses were 2.8% in the third quarter of 2007, compared to 4.2% in the same quarter last year.

Operating income was $5.5 million, or 13.6% of revenue, down 22.9% from $7.1 million, or 16.8% of revenue, in the third quarter of 2006.

Net income was $3.4 million, or $0.03 per fully diluted share, compared to a net income of $2.2 million, or $0.02 per fully diluted share, in the third quarter of 2006. Adjusting net income to exclude non-cash debt financing and other expenses related to the Company's convertible debt and warrants, adjusted net income was $3.0 million, or $0.03 per fully diluted share, in the third quarter of 2007, down from adjusted net income of $4.0 million, or $0.03 per diluted share, in the same period of 2006.

Results for the Nine Months ended Sep 30, 2007

Net revenue was $116.0 million in the first nine months of 2007, up 23.0% from $94.4 million in the same period last year. Gross profit was $20.8 million, or 17.9% of revenue, up 6.8% from $19.5 million, or 20.6% of revenue in the same period last year. Operating income was $17.1 million, or 14.7% of revenue, up 9.3% from $15.6 million, or 16.6% of revenue in the same period last year. Net income was $6.5 million, or $0.07 per fully diluted share, compared to a net loss $4.6 million, or $(0.06) per fully diluted share, in the same period last year. Adjusting net income to exclude non-cash debt financing and other expenses related to the Company's convertible debt and warrants, adjusted net income was $9.2 million, or $0.10 per fully diluted share, in the first nine months of 2007, up 8.2% from $8.5 million, or $0.11 per fully diluted share, in the same period last year.

Financial Condition

As of September 30, 2007, Puda Coal had $1.8 million in cash and cash equivalents, $39.6 million in working capital and a current ratio 3.5:1. Puda Coal used $17.4 million in cash flow from operations in the first nine months of 2007, which includes a $20.0 million increase in raw coal inventory in an effort to mitigate rising raw materials prices. Long-term debt, excluding current portion, was $18.8 million and shareholders' equity stood at $39.5 million.

Business Outlook

Management anticipates that China's strong economic growth will continue in 2007 and believes that this will drive the demand for steel and high-grade metallurgical coking coal. Despite the strong demand, Puda Coal is experiencing higher raw coal prices and increased competition as the larger steel groups have begun sourcing a more of their coal washing needs from internal coke mills and many coal mining companies have begun to integrate downstream by establishing coal washing operations.

As a result, the company has modified its strategy and is seeking to acquire coal mines in an effort to vertically integrate its coal washing operations. In September 2007, the Company entered into an agreement to purchase the Jingle Muguashan coal mine in Jingle County, Shanxi Province. The Jingle Muguashan agreement is contingent on the Company's receipt of a mining permit.

''While we expect the market to remain competitive over the next several quarters, we will actively seek to increase our sales while attempting to preserve our margins," said Mr. Zhao. ''Given the current environment, we are seeking to acquire coal mines to take advantage of the strong demand for raw coal in China and improve profitability. We have already identified one potential acquisition and are carefully reviewing a number of other opportunities.''

For fiscal 2007 Puda Coal expects revenues of approximately $160 million and operating income of approximately $22 million.

[wrangler]

is this the bottom?

Hi La-onda
Chart you use is very similar to what I use for bottom playing. It gave a weak buy signal Friday and would watch trading Monday for stronger signal which would be higher low with higher high and would probably be a good bottom play for the bounce.
I use RSI 5 crossing 30 line for buy signal and most bottom plays will bounce back when 20 MA gets hit or close to it. Usually if it goes above 20 MA and stays next test will be 32 MA.
Usually using 5 minute daily chart for trading day will give some indication of how it might trade the next day. It is looking good for Monday..JMO
Goodluck trading

[la-onda]

not started with a position