Shiner International, Inc. Announces Results for the First Quarter of 2012
HAIKOU, China, May 21, 2012 /PRNewswire-Asia/ -- Shiner International, Inc. (Nasdaq: BEST) ("Shiner" or the "Company"), an emerging global supplier of packaging solutions for food, tobacco, and consumer products, today announced its financial results for the quarter ended March 31, 2012.
Total revenue for the three months ended March 31, 2012 were $17.4 million, an increase of 9.2% compared to total revenue of $15.9 million for the same quarter ended March 31, 2011. This increase was mainly attributable to an increase sales in BOPP film and advanced film. BOPP tobacco revenue increased 24.9%, or $2.0 million, in the three months ended March 31, 2012 to $10.0 million as compared to $8.0 million for the same period in 2011, which is benefited from the operation of our new BOPP tobacco film line resulting in better quality and powerful competitiveness. Coated film revenue decreased 16.3%, or $0.8 million, to $4.1 million in the three months ended March 31, 2012 as compared to $4.9 million for the same period in 2011. Our advanced film revenue increased 67.1%, or $0.9 million, to $2.2 million in the three months ended March 31, 2012 as compared $1.3 million for the same period in 2011, this strong growth tendency was mainly driven by our increased exportation to Vietnam market. Our color printing segment revenues decreased 37.8%, or $0.6 million, to $1.0 million in the three months ended March 31, 2012 as compared to $1.7 million for the same period in 2011.
Internationally, we sell three lines of products: advanced film (anti-counterfeit film), coated film, and color printing. International sales for the three months ended March 31 2012 were $3.0 million, or 17.2%, of our revenues in 2012 as compared to $2.8 million or 18.0% of revenue for the corresponding period in the fiscal year ended 2011. The figures presented that international sales remained steady with little increase. All international sales are indirectly using a network of distributors and converters.
Shiner's gross profit for the three months ended March 31, 2012 was $2.2 million, the gross profit margin decreased to 12.5% compared to 14.9% of total revenue for the same quarter of 2011. The decrease in gross profit margin was primarily a consequence of an increase in overhead unit rates as a result of increased labor costs and depreciation of the new property.
Operating loss for the three months ended March 31, 2012 was $0.1 million compared to operating income of $1.2 million for the same quarter ended March 31, 2011. Selling, general and administrative ("SG&A") expenses increased by 98.1%, or $1.1 million, to $2.3 million for 2012 compared to $1.2 million in 2011. The increase in SG&A expense mainly due to increased R& D expenses, increased labor costs, depreciation of the new property, as compared to the same period of 2011.
Shiner reported net income of $(0.6) million for the three months ended March 31, 2012, compared to $1.0 million in the same period of 2011. Earnings per share for the quarter were $(0.02), compared to earnings of $0.04 per share for the same period of 2011.
Management Comments
Mr. Qingtao Xing, the CEO and President of Shiner stated, "We are very pleased with the improved sales and margins in our BOPP tobacco film and anti-countered film segment. As our new BOPP tobacco film line is put into operation, the market competitiveness of our company further is expected to be strengthened. I expect this growth trend will continue in the next quarters and believe this will positively affect to our revenue and profit. Our coated films experienced lower sales due to its higher sensitivity to prude oil price and labor rates.
Mr. Xing continued, "We're focusing on driving our R&D innovation, a key competitive advantage for us, and we expect to develop new products to satisfy customers' needs. I expect our performance to be further improved in the coming quarter."
About Shiner International, Inc.,
Shiner International, Inc. is engaged in the research and development, manufacture and sale of flexible packaging material and advanced film. Its products include coated packaging film, shrink-wrap film, common packaging film, anti-counterfeit laser holographic film and color-printed packaging materials. The Company's products are used by manufacturers in the food and consumer products industry to preserve the texture, flavor, hygiene, and convenience and safety of their products. The Company was founded in 1990 and is headquartered in Haikou, China.
Approximately 80% of Shiner's current customers are located in China, with the remainder spanning Southeast Asia, Europe, the Middle East and North America. Shiner holds 19 patents on products and production equipment, and has an additional 10 patent applications pending. The Company's flexible packaging meets U.S. FDA requirements, as well as the requirements for food packaging sold in the EU. Shiner's product manufacturing process is certified under ISO 9001:2000. Additional information on Shiner is available at http://www.shinerinc.com.
Safe Harbor Statement
All statements in this press release that are not historical are forward- looking statements made pursuant to the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. You are cautioned not to place undue reliance on any forward-looking statements in this press release as they reflect Shiner International, Inc.'s current expectations with respect to future events and are subject to risks and uncertainties that may cause actual results to differ materially from those contemplated. Potential risks and uncertainties include, but are not limited to, the risks described in Shiner's filings with the Securities and Exchange Commission. The information contained in this press release is made as of the date of the press release, even if subsequently made available by Shiner on its website or otherwise
Contact:
Cindy Gong
Tel: 86-898-6858 1104
Fax: 86-898-6858 1513
Email: [email protected]: [email protected]
Web: http://www.shinerinc.com
| SHINER INTERNATIONAL, INC. AND SUBSIDIARIES |
||||||
| CONSOLIDATED BALANCE SHEETS |
||||||
| March 31, |
December 31, |
|||||
| 2012 |
2011 |
|||||
| (unaudited) |
||||||
| ASSETS |
||||||
| CURRENT ASSETS: |
||||||
| Cash & equivalents |
$ |
2,022,029 |
$ |
2,831,808 |
||
| Restricted cash |
- |
57,613 |
||||
| Accounts receivable, net of allowance for doubtful |
||||||
| accounts of $146,055 and $121,017 at 2012 and 2011 |
7,866,576 |
7,744,377 |
||||
| Advances to suppliers |
7,860,571 |
10,042,214 |
||||
| Notes receivable |
- |
7,865 |
||||
| Inventory, net |
13,737,011 |
10,252,955 |
||||
| Prepaid expenses & other current assets |
936,502 |
1,072,326 |
||||
| Total current assets |
32,422,689 |
32,009,158 |
||||
| Property and equipment, net |
36,291,261 |
27,836,253 |
||||
| Construction in progress |
4,316,566 |
12,037,154 |
||||
| Advance for the purchase of equipment |
852,303 |
763,427 |
||||
| Intangible assets, net |
3,024,048 |
3,063,646 |
||||
| Goodwill |
2,036,205 |
2,023,342 |
||||
| TOTAL ASSETS |
$ |
78,943,072 |
$ |
77,732,980 |
||
| LIABILITIES AND STOCKHOLDERS' EQUITY |
||||||
| CURRENT LIABILITIES: |
||||||
| Accounts payable |
$ |
7,523,788 |
$ |
5,133,835 |
||
| Other payables |
7,382,944 |
7,021,179 |
||||
| Unearned revenue |
706,951 |
1,313,320 |
||||
| Accrued payroll |
162,000 |
193,884 |
||||
| Short-term loans |
8,973,908 |
10,684,625 |
||||
| Total current liabilities |
24,749,591 |
24,346,843 |
||||
| Long-term loans |
11,081,000 |
9,957,090 |
||||
| Total Liabilities |
35,830,591 |
34,303,933 |
||||
| Commitments and contingencies |
||||||
| EQUITY: |
||||||
| Shiner stockholders' equity: |
||||||
| Common stock, par value $0.001; 75,000,000 shares authorized, |
||||||
| 27,603,336 shares issued and 27,541,491 shares outstanding |
27,603 |
27,603 |
||||
| Additional paid-in capital |
14,333,408 |
14,332,392 |
||||
| Treasury stock (61,845 shares) |
(58,036) |
(58,036) |
||||
| Other comprehensive income |
5,693,864 |
5,426,393 |
||||
| Statutory reserve |
3,542,707 |
3,523,273 |
||||
| Retained earnings |
17,904,664 |
18,478,618 |
||||
| Total Shiner stockholders' equity |
41,444,210 |
41,730,243 |
||||
| Noncontrolling interest |
1,668,271 |
1,698,804 |
||||
| Total equity |
43,112,481 |
43,429,047 |
||||
| TOTAL LIABILITIES AND EQUITY |
$ |
78,943,072 |
$ |
77,732,980 |
||
| The accompanying notes are an integral part of these consolidated financial statements. |
||||||
| SHINER INTERNATIONAL, INC. AND SUBSIDIARIES |
||||||||
| CONSOLIDATED STATEMENTS OF OPERATIONS AND OTHER COMPREHENSIVE INCOME (LOSS) |
||||||||
| FOR THE THREE MONTHS ENDED MARCH 31, 2012 AND 2011 |
||||||||
| (unaudited) |
||||||||
| 2012 |
2011 |
|||||||
| Net Revenue |
$ |
17,370,024 |
$ |
15,906,845 |
||||
| Cost of goods sold |
15,199,083 |
13,539,738 |
||||||
| Gross profit |
2,170,941 |
2,367,107 |
||||||
| Operating expenses |
||||||||
| Selling |
654,531 |
444,676 |
||||||
| General and administrative |
1,646,477 |
717,039 |
||||||
| Total operating expenses |
2,301,008 |
1,161,715 |
||||||
| Income (loss) from operations |
(130,067) |
1,205,392 |
||||||
| Non-operating income (expense): |
||||||||
| Other income, net |
(101,183) |
194,611 |
||||||
| Interest income |
8,829 |
6,273 |
||||||
| Interest expense |
(288,669) |
(142,951) |
||||||
| Exchange (loss) |
(5,873) |
(55,795) |
||||||
| Total non-operating income (expense) |
(386,896) |
2,138 |
||||||
| Income (loss) before income tax |
(516,963) |
1,207,530 |
||||||
| Income tax expense |
78,943 |
210,836 |
||||||
| Net income (loss) |
(595,906) |
996,694 |
||||||
| Net loss attributed to noncontrolling interest |
(41,386) |
(8,310) |
||||||
| Net income (loss) attributed to Shiner |
$ |
(554,520) |
$ |
1,005,004 |
||||
| Comprehensive income (loss) |
||||||||
| Net income (loss) |
$ |
(595,906) |
$ |
996,694 |
||||
| Foreign currency translation gain |
278,324 |
226,514 |
||||||
| Comprehensive income (loss) |
$ |
(317,582) |
$ |
1,223,208 |
||||
| Weighted average shares outstanding : |
||||||||
| Basic |
27,541,491 |
27,541,491 |
||||||
| Diluted |
27,541,491 |
27,546,675 |
||||||
| Earnings (loss) per share attributed to Shiner common stockholders |
||||||||
| Basic |
$ |
(0.02) |
$ |
0.04 |
||||
| Diluted |
$ |
(0.02) |
$ |
0.04 |
||||
| The accompanying notes are an integral part of these consolidated financial statements. |
||||||||
| SHINER INTERNATIONAL, INC. AND SUBSIDIARIES |
|||||||||
| CONSOLIDATED STATEMENTS OF CASH FLOWS |
|||||||||
| FOR THE THREE MONTHS ENDED MARCH 31, 2012 AND 2011 |
|||||||||
| (unaudited) |
|||||||||
| 2012 |
2011 |
||||||||
| CASH FLOWS FROM OPERATING ACTIVITIES: |
|||||||||
| Net income (loss) |
$ |
(595,906) |
$ |
996,694 |
|||||
| Adjustments to reconcile net income (loss) to net cash |
|||||||||
| provided by (used in) operating activities: |
|||||||||
| Depreciation |
676,373 |
518,462 |
|||||||
| Amortization |
59,148 |
1,809 |
|||||||
| Stock compensation expense |
1,016 |
695 |
|||||||
| Change in working capital components: |
|||||||||
| Accounts receivable |
(73,060) |
589,310 |
|||||||
| Inventory |
(3,423,193) |
(1,526,012) |
|||||||
| Advances to suppliers |
2,248,321 |
(4,456,522) |
|||||||
| Other assets |
136,476 |
(74,521) |
|||||||
| Accounts payable and accrued expenses |
2,360,516 |
(2,287,552) |
|||||||
| Unearned revenue |
(612,876) |
844,269 |
|||||||
| Other payables |
319,373 |
14,066 |
|||||||
| Accrued payroll |
(33,158) |
(6,377) |
|||||||
| Net cash provided by (used in) operating activities |
1,063,030 |
(5,385,679) |
|||||||
| CASH FLOWS FROM INVESTING ACTIVITIES |
|||||||||
| Issuance of notes receivable |
- |
(173,074) |
|||||||
| Payment on note receivable |
7,925 |
- |
|||||||
| Payments for property and equipment |
(1,242,044) |
(9,089,081) |
|||||||
| Payments for construction in progress |
- |
(738,208) |
|||||||
| (Increase)/decrease in restricted cash |
58,052 |
- |
|||||||
| Net cash used in investing activities |
(1,176,067) |
(10,000,363) |
|||||||
| CASH FLOWS FROM FINANCING ACTIVITIES: |
|||||||||
| Repayment of short-term loans |
(8,555,000) |
(6,848,001) |
|||||||
| Proceeds from short-term loans |
6,774,112 |
16,602,598 |
|||||||
| Proceeds from long-term loans |
1,061,950 |
- |
|||||||
| Net cash provided by (used in) financing activities |
(718,938) |
9,754,597 |
|||||||
| Effect of exchange rate changes on cash and cash equivalents |
22,196 |
31,785 |
|||||||
| NET DECREASE IN CASH AND EQUIVALENTS |
(809,779) |
(5,599,660) |
|||||||
| CASH AND EQUIVALENTS, BEGINNING BALANCE |
2,831,808 |
8,622,035 |
|||||||
| CASH AND EQUIVALENTS, ENDING BALANCE |
$ |
2,022,029 |
$ |
3,022,375 |
|||||
| SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: |
|||||||||
| Interest paid |
$ |
- |
$ |
142,784 |
|||||
| Income taxes paid |
$ |
- |
$ |
219,128 |
|||||
| The accompanying notes are an integral part of these consolidated financial statements. |
|||||||||
SOURCE Shiner International, Inc.
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