BioPharm Asia Announces Preliminary Unaudited Third Quarter 2011 Results
Revenue Increases 5.6% to $47.2 Million; Net Income Up 6% to $6.9 Million
NEW YORK, NY and TONGHUA, CHINA, Dec 05, 2011 (MARKETWIRE via COMTEX) -- BioPharm Asia, Inc. (OTCBB: BFAR), a producer, distributor and retailer of medical products in China, today announced its financial results for the three months and nine months ended September 30, 2011.
Third Quarter 2011 Financial Highlights:
-- Revenue in the third quarter of 2011 rose to $47.2 million, an
increase of $2.5 million, or 5.6%, over last year's comparable period
revenue of $44.7 million.
-- Gross profit in the third quarter was $14.6 million, an increase of
$1.7 million or 13%, as compared to the $12.9 million for the same
period in 2010.
-- Net income increased to $6.9 million, compared to $6.5 million in the
third quarter of 2010.
-- Fully diluted earnings per share for the quarter increased to $0.138
from $0.13 in the prior year period.
The Company's revenue increased by $2.5 million during the third quarter of 2011 over the comparable 2010 period largely as the result of the $ 4.9 million increase in the Company's Herbal Planting segment, and a revenue increase of $0.5 million from the Company's Hospital Management segment.
The revenue for nine months ended September 30, 2011 was $115.3 million, reflecting an increase of $13.3 million, or 13% from the comparable 2010 period. This primarily resulted from the Company's herbal planting segment, which realized a 643% revenue increase of $9 million, due to the increased profitability of Tonghua Tianbao Wood Frog Cultivation Limited Company. The overwhelming market demand of wood frog for its wide usage in vitamins and traditional Chinese medicines drove the profit margin over 70% higher than the year prior.
Gross profit for three months ended September 30, 2011 was $14.6 million, up 13% from $12.9 million in the third quarter of 2010. Gross margin as a percentage of revenue increased to 31% for the third quarter 2011 from 29% for the same period in 2010. The Gross margin is virtually steady, however the Retail segment's revenue was decreased to $18.7 million, down 13% from $21.4 million in the third quarter of 2010. The retail segment's reduced sales was attributable in part to PRC government-mandated price reductions for products included in the national essential drug list, compounded by product cost increases during the period caused in part by the national inflation rate of 6.1% in the third quarter. Gross profit for nine months ended September 30, 2011 was $38.6 million, up from the prior year's level of $31.2 million. Gross margin was 33.5%, slightly higher than the prior year's gross margin of 30.6%.
Operating expenses for the third quarter of 2011 totaled $4.2 million, slightly higher than the comparable 2010 period. For the nine months ended September 30, 2011, operating expenses were $13.4 million, a $3.1 million increase from last year's nine month results. This increase resulted primarily from additional expenses related to the hospital management segment, reflecting the cost structure associated with health care management, higher professional insurance and rental costs.
The Company's improved revenue and gross profit resulted in net income for the third quarter 2011 of $6.9 million, or $0.14 per share, up 6% from the $6.5 million, or $0.13 per share, in the same period in 2010. For the nine months ended September 30, 2011, net income increased 11% to $17.3 million, or $0.35 per share, from $15.6 million, or $0.31 per share, in the comparable 2010 period.
As of September 30, 2011, the Company's cash and cash equivalents were $19.4 million as compared to $17.1 million as of December 31, 2010.
About BioPharm Asia, Inc.
BioPharm Asia, Inc. is engaged in the retail sale of medical products in China, complemented by vertically integrated supporting functions that include the cultivation of Chinese herbal medicines, pharmaceutical production and wholesale medicine distribution. For more information, please visit http://www.biopharmasiainc.com.
Forward-looking statement: Except for certain historical information contained herein, the matters discussed in this news release contain forward-looking statements, including, but not limited to, statements relating to future expansion plans and growth in sales. These forward-looking statements involve a number of risks and uncertainties. Actual results may differ materially from those implied herein due to a number of factors, including, but not limited to, uncertainties in product demand, risks related to doing business in China, the impact of competitive products and pricing, changing economic conditions around the world, release and sales of new products and other risk factors discussed in the company's most recent annual report and other filings with the U. S. Securities and Exchange Commission.
BIOPHARM ASIA, INC. AND SUBSIDIARIES
CONDENSED BALANCE SHEETS
($ in Millions)
(unaudited)
September
30, December 31,
2011 2010
ASSETS
Cash and cash equivalents
$ 19.4 17.1
Accounts receivable, net 33.7 32.5
Inventories 17.2 18.3
Other current assets 13.6 13.0
Property and equipment, net 14.9 14.0
Other assets 1.7 1.6
Total Assets 100.5 96.5
LIABILITIES AND STOCKHOLDERS' EQUITY
Short-term loans 7.5 5.0
Accounts payable and accrued liabilities 30.1 23.7
Other current liabilities 10.9 16.4
Total Liabilities 48.5 45.1
Stockholders' Equity 52.0 51.4
Total Liabilities and Stockholders' Equity 100.5 96.5
BIOPHARM ASIA, INC. AND SUBSIDIARIES
CONDENSED STATEMENTS OF OPERATIONS
(UNAUDITED)
For the Three Months For the Nine Months
Ended September 30, Ended September 30,
2011 2010 2011 2010
Revenues $ 47.2 $ 44.7 115.3 102.0
Cost of Goods Sold 32.6 31.8 76.7 70.8
Gross Profit 14.6 12.9 38.6 31.2
Operating Expenses 4.2 3.9 13.4 10.3
Income from Operations 10.4 9.0 25.2 20.9
Interest Expenses 0.2 0.1 0.6 0.3
Provision for Income Taxes 3.3 2.3 7.3 4.9
Net Income 6.9 6.5 17.3 15.6
Earnings per common share 0.14 0.13 0.35 0.31
Shares outstanding 50,000,000 50,000,000 50,000,000 50,000,000
Revenue by Segment for
($ in Millions)
(unaudited)
For the Three Months For the Nine Months
Ended September 30, Ended September 30,
2011 2010 2011 2010
----------- ----------- ----------- -----------
Herbal Planting 4.9 - $ 9.3 1.4
Drug Manufacturing 10.6 11.0 26.7 27.6
Distribution 12.5 12.3 37 34.1
Retail 18.7 21.4 34.1 38.9
Hospital Mgmt 0.5 - $ 1.3 - $
Total $ 47.2 $ 44.7 $ 108.4 $ 102.0
Numbers may not add due to rounding
Contact:
BioPharm Asia, Inc.
Missy Zhang
+1-646-203-3666
Email Contact
SOURCE: BioPharm Asia, Inc.
CONTACT: http://www2.marketwire.com/mw/emailprcntct?id=9435C90B44783549
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SUBJECT CODE: Pharmaceuticals and Biotech:Biotech
Pharmaceuticals and Biotech:Trials
Pharmaceuticals and Biotech:Equipment and Supplies
Pharmaceuticals and Biotech:Drugs |
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