China Gerui Advanced Materials Group announced unaudited consolidated earnings results for the fourth quarter and twelve months ended December 31, 2013. Revenue decreased 27.7% to $46.2 million in the fourth quarter of 2013 from $63.9 million in the fourth quarter of 2012. The decrease in revenue was primarily due to a 15.0% decrease in the company's average selling price to $661 per ton for the fourth quarter of 2013 as compared to an average selling price of $778 for the fourth quarter of 2012 as well as a 13.8% decrease in sales volume to approximately 70,000 tons for the fourth quarter of 2013 as compared to approximately 81,200 tons for the same quarter of 2012. Operating loss was $6.9 million in the fourth quarter of 2013, decreasing from operating income of $0.7 million for the fourth quarter of 2012. The decrease in operating income in the fourth quarter 2013 as compared to the operating income in the fourth quarter last year is primarily due to a 140.2% decrease in gross profit in the fourth quarter of 2013 as compared to the same period of 2012. Net loss was $6.2 million in the fourth quarter of 2013, compared to a net loss of $0.5 million in the fourth quarter of 2012. Net loss per diluted share was $0.10 against $0.01 of prior year period. Non-GAAP EBITDA was $2.8 million in the fourth quarter of 2013, compared to $3.7 million, in the fourth quarter of 2012. Loss before income taxes was $6.2 million against $169,477 of prior year period.

Revenue decreased 37.5% to $165.8 million for the fiscal year ended December 31, 2013, from $265.5 million for fiscal year 2012. The decrease in revenue was primarily due to a 13.9% decrease in the company's average selling price to $690 per ton for fiscal year 2013 as compared to $801 per ton for fiscal year 2012, and a 27.5% decrease in sales volume to 240,300 metric tons for fiscal year 2013 as compared to approximately 331,500 metric tons for fiscal year 2012. Operating loss was $6.3 million for the fiscal year ended December 31, 2013, decreasing from operating income of $42.3 million for fiscal year 2012. Net loss was $11.5 million for fiscal year ended December 31, 2013, as compared to net profit of $26.1 million for fiscal year 2012. Net loss per diluted share for fiscal year 2013 decreased to $0.19, including the impact of stock-based compensation expense of $0.03 million, from net income per fully diluted share of $0.45 for fiscal year 2012. Non-GAAP Adjusted EBITDA was $7.0 million adjusting for non-cash stock compensation expense, was down 87.8% from $57.6 million in the same period of 2012. The net cash provided by operating activities for the twelve months ended December 31, 2013 was $37.5 million compared to net cash used in operating activities of $2.1 million as of fiscal year 2012. Loss before income taxes was $11.3 million against income before income taxes of $38 million of prior year period. Cash paid for property, plant and equipment amounted to $10.1 million against $30.6 million of prior year.


The company provided revenue guidance for 2014. The company provided full year 2014 revenue guidance in the range of $175 million to $180 million.