LOS ANGELES & HANOI, Vietnam--(BUSINESS WIRE)--Cavico Corp. (“Cavico” or “the Company”) (OTCBB: CVIC.OB), a leading infrastructure development company in Vietnam, today announced financial results for the second quarter ended June 30, 2009.

Second Quarter 2009 Results

Gross profit for the second quarter of 2009 was $3.2 million or 23.3% of sales compared to $3.5 million or 17.9% of sales for the three months ended June 30, 2008. The growth in gross profit was attributable to increase in profitability from Dong Nai 4 and Algeri project. Also contributing to the significant growth in gross profit percentage was the decrease in cost of fuel, steel, and replacement parts.

Revenues for the second quarter of 2009 were $13.9 million, down 28.9% from $19.5 million in the second quarter of 2008. On a sequential basis, revenue increased 13.2% compared with the first quarter of 2009 as a result of additions of several new projects and an adverse effect from National Holiday in Vietnam in the first quarter of 2009.

Operating expenses totaled $2.0 million, an increase of 19.9% from $1.7 million. The increase in operating expenses was primarily due to the increase in administrative costs for the corporate office such as professional fees related to audit, legal, consulting services and other administrative costs.

The Company reported an operating income of $1.2 million in the second quarter of 2009, compared to $1.8 million in the second quarter of 2008.

Net income in the second quarter of 2009 was $0.6 million, compared to net income of $1.1 million in the same period a year ago.

Financial Condition

As of June 30, 2009, the Company has $3.8 million in cash, accounts receivable of $10.8 million and construction work in progress of $39.7 million. Total current liabilities were $99.0 million, which includes advance from customers of $19.5 million. As of June 30, 2009, shareholders' equity reached $21.1 million, up 12.5% from shareholder's equity of $18.8 million as of December 31, 2008. During the six months ended June 30, 2009, the Company used $2.9 million in operating activities.

Business Environment

Vietnam’s GDP grew at 6.2% in 2008 and 3.9% in the first half of 2009. The stimulus package rolled out by the Vietnamese economy in December 2008 will help boost the overall economy and result in construction and infrastructure growth.

On June 18, 2009, Cavico announced that Cavico Energy Construction JSC (“Cavico Energy”), a wholly own subsidiary of Cavico Corp, won the contract bid involving construction of an overfill spillway (Package 4) for Da Ban Irrigation Dam. Cavico also has received the investment license, an important document for the development of its planned wind farm project. The Company has also completed the construction of the three ground levels of its high-tech APEX tower, successfully establishing a critical foundation for the whole tower.

“While we saw a decline in our year-over-year results during the second quarter, we are pleased to report net income growth compared with the first quarter of 2009. Our plans include acquiring mine ownership in Vietnam and Laos to expand our scope of business and diversify sources of revenue. Our future strategy includes expanding into the alternative energy sector with an investment in a wind power farm in Vietnam.” said Mr. Hung Manh Tran, Vice President of Cavico Corp. “We are progressing towards completing a reverse stock split and upgrading the listing of our common stock to NASDAQ.”

On June 11, 2009, Cavico announced that the Company has filed an application to list its common stock on the NASDAQ Capital Market. Upon approval, Cavico will become the first Vietnamese company to list on a U.S. national securities exchange.

About Cavico Corp. (OTCBB: CVIC.OB)

Cavico Corp. is focused on large infrastructure projects, which include the construction of hydropower facilities, dams, bridges, tunnels, roads, mines and urban buildings. Cavico is also making investments in hydropower facilities, cement production plants and urban developments in Vietnam. The company employs more than 3000 employees on projects worldwide, with offices throughout Vietnam and a satellite office in Australia.

Founded in 2000, Cavico is a major infrastructure construction, infrastructure investment and natural resources conglomerate headquartered in Hanoi, Vietnam. Cavico is highly respected for its core competency in the construction of mission-critical infrastructure including hydroelectric plants, highways, bridges, tunnels, ports and urban community developments. One of the Company’s primary competitive advantages is its ability to nurture a project “from concept through completion” with a vertical portfolio of interrelated investment, permitting, design, construction management and facility maintenance services. Cavico’s project partners include top multi-national corporations and government organizations. The Company employs more than 3,000 full-time, part-time, and seasonal workers. For more information, visit http://www.cavicocorp.com. Information on the Company’s Web site or any other Web site does not constitute a portion of this release.

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995

This press release contains "forward-looking statements" within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact in this announcement are forward-looking statements, including but not limited to, the Company's ability to obtain the necessary financing to continue and expand operations, to market its construction services in new markets and to offer construction services at competitive pricing, to attract and retain management, and to integrate and maintain technical information and management information systems; the effects of currency policies and fluctuations, general economic conditions and other factors detailed from time to time in the Company's filings with the United States Securities and Exchange Commission and other regulatory authorities. These statements include, without limitation, statements regarding our ability to prepare the Company for growth, the Company's planned expansions, and predictions and guidance relating to the Company's future financial performance. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

CAVICO CORP. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET
(Unaudited)
		June 30, 2009					December 31, 2008
ASSETS
Current Assets:
Cash		$	3,846,194				$	3,148,985
Investments, available for sale			3,312,507					1,820,406
Accounts receivable -trade- net			10,835,116					9,184,339
Receivable - other			10,861,635					7,491,803
Inventory			5,211,268					3,940,768
Construction work in process			39,741,524					29,606,602
Receivables and advances from related parties			457,071					1,088,596
Other current assets			2,644,575					1,602,272
Total current assets			76,909,890					57,883,771
Fixed Assets:
Land and building development costs			9,715,222					8,925,718
Temporary housing assets			569,181					548,642
Machinery and equipment			27,842,834					26,411,441
Vehicles			12,725,029					12,211,356
Office and computer equipment			824,658					780,756
			51,676,924					48,877,913
Less accumulated depreciation			(19,537,552	)				(16,973,105	)
Net fixed assets			32,139,372					31,904,808
Intangible Assets:
Goodwill			857,159					855,947
Licenses - net			284,269					301,885
Net Intangible Assets			1,141,428					1,157,832
Other Non Current Assets:
Investments, non-consolidated companies & JVs			2,903,720					3,065,516
Long-term retention receivables			13,462,060					14,933,897
Prepaid expenses			2,405,151					2,530,944
Long-term work in process			521,008					547,693
Other assets			1,005,164					763,604
Total other assets			20,297,103					21,841,654
TOTAL ASSETS		$	130,487,793				$	112,788,065
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current Liabilities:
Accounts payable		$	14,745,818				$	10,214,130
Accounts payable – related parties			27,168					20,520
Accrued expenses			5,499,708					4,485,336
Advances from customers			19,516,872					15,102,331
Payable to employees			2,691,886					4,220,124
Notes payable - current			56,294,251					50,141,069
Notes payable - related parties			205,607					208,667
Current portion of capital lease obligations			112,776					112,617
Total current liabilities			99,094,086					84,504,794
Long-Term Debt:
Capital lease obligations – long-term			214,159					269,307
Long-term debt			10,055,006					9,240,394
Total long-term debt			10,269,165					9,509,701
TOTAL LIABILITIES			109,363,251					94,014,495
Commitments and Contingencies			—					—
Stockholders’ Equity:
Preferred stock:$.001 par value - Class B, 100,000,000 authorized, none issued and outstanding			—					—
Common stock, $.001 par value; 300,000,000 shares authorized; 130,997,693 shares issued, 121,911,793 shares outstanding			121,912					121,912
Additional paid-in capital			13,501,001					13,501,001
Accumulated deficit			(6,243,708	)				(6,547,740	)
Accumulated other comprehensive loss			(2,609,700	)				(3,864,303	)
Total Cavico Corp. stockholders’ equity			4,769,505					3,210,870
Noncontrolling interest			16,355,037					15,562,700
Total stockholders’ equity			21,124,542					18,773,570
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY		$	130,487,793				$	112,788,065

CAVICO CORP. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME
(Unaudited)
		Three Months Ended June 30,							Six Months Ended June 30,
		2009			2008				2009			2008
Revenues:
Civil construction		$	12,271,649		$	17,480,817			$	22,501,289		$	24,421,927
Mining construction			991,666			1,222,557				2,012,247			2,131,644
Commercial activities			601,855			802,523				1,595,324			1,195,558
Total revenue			13,865,170			19,505,897				26,108,860			27,749,129
Cost of Goods Sold:
Civil construction			9,326,747			14,337,928				17,285,338			19,605,492
Mining construction			808,743			1,027,055				1,592,723			1,699,779
Commercial activities			501,955			644,277				1,353,218			792,551
Total cost of goods sold			10,637,445			16,009,260				20,231,279			22,097,822
Gross Profit			3,227,725			3,496,637				5,877,581			5,651,307
Operating Expenses:
Selling expenses			150,882			26,557				169,201			40,241
Bad debt			108,904			—				108,904			—
General & administrative expenses			1,728,706			1,632,501				3,296,257			3,089,088
Total operating expenses			1,988,492			1,659,058				3,574,362			3,129,329
Total income from operations			1,239,233			1,837,579				2,303,219			2,521,978
Other income (expenses):
Gain on disposal of assets			8,699			(1,143	)			16,892			50,330
Other income			65,307			1,223				46,863			(6,554	)
Loss on foreign currency exchange			(119,192	)		—				(53,692	)		—
Interest income			189,230			176,818				230,250			428,753
Interest expense			(648,642	)		(462,005	)			(1,164,534	)		(970,379	)
Total other income (expense)			(504,598	)		(285,107	)			(924,221	)		(497,850	)
Income before income taxes and minority interest			734,635			1,552,472				1,378,998			2,024,128
Income taxes expenses			(177,429	)		(437,024	)			(421,890	)		(643,102	)
Net income			557,206			1,115,448				957,108			1,381,026
Less net income attributable to noncontrolling interest			(393,378	)		(580,643	)			(653,076	)		(784,912	)
Net income attributable to Cavico Corp.		$	163,828		$	534,805			$	304,032		$	596,114
Other comprehensive income:
Unrealized gain (loss) on investments available for sale			1,375,138			(4,406,157	)			1,275,768			(4,171,993	)
Foreign currency translation adjustment			67,762			(390,488	)			118,097			(302,524	)
Comprehensive income (loss)		$	2,000,106		$	(3,681,197	)		$	2,350,973		$	(3,093,491	)
Less comprehensive income (loss) attributable to the noncontrolling interest			(965,676	)		(580,643	)			(1,273,339	)		(784,912	)
Comprehensive income (loss) attributable to Cavico Corp		$	1,034,430		$	(4,261,840	)			1,077,634			(3,878,403	)
Per Share Information:
Weighted average number of common shares outstanding -basic and diluted			121,911,793			116,844,211				121,911,793			116,803,002
Net income per common share-basic and diluted		$	0.00			0.00			$	0.00			0.01

CAVICO CORP. AND SUBSIDIARIES
Consolidated Statements of Cash Flows
(Unaudited)
		Six Months Ended June 30,
		2009					2008
Cash Flows From Operating Activities:
Net income		$	957,108				$	1,381,026
Adjustments to reconcile net income to net cash used in operating activities:
Depreciation and amortization			2,956,812					3,014,904
Changes in provisions			108,904					—
Gain on sale of fixed assets			(16,892	)				(50,330	)
Loss on foreign currency exchange			53,692					—
Stock issued for services			—					75,000
Changes in assets and liabilities:
Increase in accounts receivable and other current assets			(4,902,430	)				(8,637,606	)
Increase in inventory			(1,098,035	)				(665,069	)
Increase in construction work in progress			(10,120,083	)				(3,714,782	)
(Increase) decrease in other assets			131,911					(190,098	)
Increase in advances from customer			4,391,504					3,430,237
Increase (decrease) in payable to employees			(1,533,760	)				546,375
Increase in accounts payables and accrued expenses			6,147,346					1,838,125
Net Cash Used in Operating Activities			(2,923,923	)				(2,972,218	)
Cash Flows from Investing Activities:
Purchase of property, equipment and intangible assets			(3,784,551	)				(7,165,756	)
Purchase of investments in nonconsolidated companies and joint venture			(69,790	)				(691,774	)
Proceed from sale of available-for-sale securities			27,128					—
Proceeds from sales of fixed assets			673,378					421,155
Net Cash Used in Investing Activities			(3,153,835	)				(7,436,375	)
Cash Flow From Financing Activities:
Proceeds from contribution by minority interests			212,171					5,087,069
Payments of dividend to minority interest			(211,233	)				(267,200	)
Proceeds from notes payable			47,461,073					33,802,593
Proceeds from notes payable - related parties			50,605					1,175,014
Payments of notes payable			(40,632,840	)				(29,237,334	)
Payments of notes payable- related parties			(53,954	)				(679,452	)
Payments of capital leases obligations			(55,513	)				(44,502	)
Net Cash Provided By Financing Activities			6,770,309					9,836,188
Increase (decrease) in Cash			692,551					(572,405	)
Cash at Beginning of period			3,148,985					1,412,201
Effect of foreign currency translation			4,658					(18,999	)
Cash at End of period		$	3,846,194				$	820,797
Supplemental Cash Flow Information:
Interest paid		$	3,529,639				$	1,422,656
Taxes paid		$	20,102				$	22,583

Cavico, Corp.
Timothy Pham, Vice President and Director
714-843-5456
cavicohq@cavico.us
or
CCG Investor Relations Inc.
Roger Ellis, Senior Vice-President
310-477-9800
Roger.ellis@ccgir.com
http://www.ccgir.com