Financial Highlights -- Net revenue increased 66.6% year-over-year to a quarterly record $27 million; -- Gross profit increased 51.3% year-over-year to $9.6 million; -- Net income increased 64.9% year-over-year to a quarterly record $5.7 million; -- Fully diluted earnings per share were $0.81 compared with $0.56 in the 2008 third quarter; -- Almost 34,000 metric tons of organic granular fertilizer sold during the quarter; -- Cash and cash equivalents were $19.0 million with a current ratio of 5.7 to 1 and no long-term liabilities; and -- Revised 2009 guidance to net revenues $70 million and net income of $15.6 million
Mr.
"Our 'Green Vitality' compound organic granular fertilizer products are a premium line. Green Vitality is an innovative and versatile organic granular fertilizer which can improve the yields of a large variety of crops. On the production front, we have already seen timely contributions from two of our three new production facilities for organic granular fertilizers, and we expect to have the Xinjiang facility commence commercial production by the end of 2009 which will add to our presence in the western markets of China," Mr. Chang concluded.
Third Quarter 2009 Results
Revenue for the third quarter of 2009 grew by 66.6%, or by
Gross profit for the third quarter of 2009 increased 51.3%, or by
Selling expenses during the third quarter of 2009 were
Operating and administrative expenses during the quarter were
Income from operations was approximately
The tax rate in the third quarter of 2009 was 20.5% and was lower than the 24.4% tax rate in the third quarter of 2008. The reduced tax rate is due mainly to a subsidiary that generated net income this quarter, but was exempt from Chinese income taxes.
Net income attributable to China Agritech's common shareholders for the
third quarter of 2009 was
Nine Month Results
For the first nine months ended
Financial Condition
As of
Recent Developments
On
On
On
Other Events
On
China Agritech began trading on the NASDAQ Global Market starting on
Business Outlook
The Company is now expecting net revenue for the year 2009 to be
approximately
These targets are based on the Company's current views on the operating and market conditions, which are estimates and subject to change.
"In the first nine months of 2009, we have generated over
Conference Call
The Company will host a conference call, to be simultaneously web cast, on
To participate, please call the following phone numbers: United States 1-866-519-4004 China, Domestic 800-819-0121-Landline Hong Kong 852-2475-0994 Canada 1-800-407-1908 International Toll Dial-In Number: 656-735-7955 Conference ID # 41129467
A live web cast of the conference call will be available on China Agritech's website at http://www.chinaagritechinc.com . Please visit the website at least 15 minutes early to register for the web cast and download any necessary audio software.
A web cast replay will be available on the Company's website, and the call
replay will be available through
United States Dial-In #: 1-866-214-5335 Canada Dial-In #: 1-800-301-5423 China North Dial-In #: 10-800-714-0386 China South Dial-In #: 10-800-140-0386 Hong Kong Dial-In #: 800-901-596 International Dial-In #: +61 2 8235 5000 Conference ID # 41129467
About China Agritech, Inc.
China Agritech, Inc. is engaged in the development, manufacture and distribution of liquid and granular organic compound fertilizers and related products in China. The Company has developed proprietary formulas that provide a continuous supply of high-quality agricultural products while maintaining soil fertility. The Company sells its products to farmers located in 28 provinces of China.
For more information about the Company, please visit http://www.chinaagritechinc.com .
Safe Harbor Statement
This release may contain certain "forward-looking statements" relating to the business of China Agritech and its subsidiary companies, which can be identified by the use of forward-looking terminology such as "believes," "expects," "anticipates," "estimates" or similar expressions , including, but not limited to, statements regarding the continued demand for China Agritech's products, China Agritech's ability to sustain growth for the balance of the year and China Agritech's ability to generally meet all of its objectives. Such forward-looking statements involve known and unknown risks and uncertainties, including all business uncertainties relating to product development, marketing, concentration in a single customer, raw material costs, market acceptance, future capital requirements, and competition in general and other factors that may cause actual results to be materially different from those described herein as anticipated, believed, estimated or expected. Certain of these risks and uncertainties are or will be described in greater detail in our filings with the SEC. Except as required by law, China Agritech is under no obligation to update or alter its forward-looking statements whether as a result of new information, future events or otherwise.
For more information, please contact: In China: Mr. Gareth Tang Chief Financial Officer China Agritech, Inc. Email: gareth@chinaagritech.com In the U.S.: Mr. Kevin Theiss Investor Relations Grayling Tel: +1-646-284-9409 Email: kevin.theiss@us.grayling.com UNAUDITED CONSOLIDATED INCOME STATEMENTS FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2009 and 2008 AND FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2009 and 2008 THREE MONTHS ENDED NINE MONTHS ENDED SEPT. 30, SEPT. 30, 2009 2008 2009 2008 Net revenue $27,043,952 $16,236,573 $55,379,939 $36,929,747 Cost of revenue (17,447,653) (9,896,393)(33,460,130) (20,429,067) Gross profit 9,596,299 6,340,180 21,919,809 16,500,680 Operating expenses Selling expenses (727,593) (646,861) (1,758,305) (1,862,586) General and administrative expenses (1,694,715) (808,710) (3,550,228) (2,732,601) Total operating expenses (2,422,308) (1,455,571) (5,308,533) (4,595,187) Income from operations 7,173,991 4,884,609 16,611,276 11,905,493 Other income (expense) Interest income 9,065 22,006 15,089 85,902 Exchange gain (loss) 299 127,277 (2,757) (47,562) Total other income (expense) 9,364 149,283 12,332 38,340 Income before income taxes 7,183,355 5,033,892 16,623,608 11,943,833 Provision for income taxes (1,473,260) (1,225,991) (3,789,496) (3,375,985) Net income 5,710,095 3,807,901 12,834,112 8,567,848 Net income attributable to non-controlling interest in a subsidiary -- (345,579) (481,452) (990,577) Net income attributable to common stockholders 5,710,095 3,462,322 12,352,660 7,577,271 Other comprehensive income Foreign currency translation adjustment 110,815 158,711 (13,526) 3,273,889 Comprehensive income 5,820,910 3,621,033 12,339,134 10,851,160 Comprehensive income attributable to non-controlling interest in a subsidiary -- (43,610) 8,403 (378,513) Comprehensive income $5,820,910 $3,577,423 $12,347,537 $10,472,647 Basic and diluted weighted average shares outstanding 7,048,063 6,174,904 6,619,803 6,174,904 Basic and diluted net earnings per share $0.81 $0.56 $1.87 $1.23 CHINA AGRITECH, INC. AND SUBSIDIARIES UNAUDITED CONSOLIDATED BALANCE SHEETS AS OF SEPTEMBER 30, 2009 AND DECEMBER 31, 2008 SEPTEMBER DECEMBER 30, 2009 31, 2008 (Unaudited) (Audited) ASSETS Current Assets Cash and cash equivalents $ 19,013,822 $ 11,952,235 Accounts receivable, net 46,411,842 34,773,115 Inventories 15,191,194 6,452,618 Advances to suppliers 5,667,032 10,795,357 Prepayments and other receivables 1,908,293 2,484,346 Total Current Assets 88,192,183 66,457,671 Property and equipment, net 6,629,315 4,496,045 Deposit for equipment -- 749,799 Construction in progress 387,262 961,551 Total Assets $ 95,208,760 $ 72,665,066 LIABILITIES AND STOCKHOLDERS' EQUITY Current Liabilities Accounts payable $ 11,284,462 $ 3,327,281 Accrued expenses and other payables 2,308,092 221,954 Taxes payable 2,265,549 1,388,897 Total Current Liabilities 15,858,103 4,938,132 Stockholders' Equity Common stock; $0.001 par value, 100,000,000 shares authorized, 7,048,063shares issued and outstanding 7,048 24,700 Additional paid-in capital 30,579,555 26,148,879 Statutory reserves 6,629,315 5,425, 407 Accumulated other comprehensive income 5,824,391 5, 837,917 Retained earnings 36,510,349 25,361,597 Total China Agritech's stockholders' equity 79,550,658 62,798,500 Non-controlling interest in a subsidiary -- 4,928,434 Total stockholders' equity 79,550,658 67,726,9 34 Total Liabilities and Stockholders' Equity $ 95,208,760 $ 72,665,066 CHINA AGRITECH, INC. AND SUBSIDIARIES UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS FOR NINE MONTHS ENDED SEPTEMBER 30, 2009 AND 2008 SEPTEMBER 30, 2009 2008 Cash flows from operating activities: Net income $ 12,834,112 $ 8,567,850 Adjustments to reconcile net income to net cash provided (used) in operating activities: Stock based compensation 2,703 -- Depreciation 508,312 470,198 Provision for doubtful debts 452,958 -- (Increase) decrease in current assets: Accounts receivable (12,080,214) (22,235,689) Inventories (8,731,639) (6,146,191) Advances to suppliers 5,874,503 7,994,813 Prepayments and other receivables 579,412 (740,955) Increase (decrease) in current liabilities: Accounts payable 7,950,480 3,256,144 Taxes payable 875,900 714,935 Accrued expenses and other payable 1,880,903 171,714 Net cash provided (used) in operating activities 10,147,430 (7,947,183) Cash flows from investing activities: Acquisition of 10% interest in Pacific Dragon (1,000,000) -- Restricted cash -- 11,415 Acquisition of property & equipment (2,201,642) (1,299,156) Construction in progress 155,780 (877,800) Net cash used in investing activities (3,045,862) (2,165,541) Cash flows from financing activities: Net cash provided by financing activities -- -- Net increase (decrease) in cash and cash equivalents 7,101,568 (10,112,724) Effect of exchange rate change on cash and cash equivalents (39,981) 3,536,977 Cash and cash equivalents, beginning of period 11,952,235 11,841,221 Cash and cash equivalents, end of period $ 19,013,822 $ 5,265,474 Supplemental disclosure of cash flow information: Income taxes paid $ 3,013,389 $ 3,362,504 Non-cash Investment and Financing Activity: Offset of amounts due to/from stockholders $ -- $ 330,032
SOURCE China Agritech, Inc.