Fourth Quarter Financial Highlights -- Quarterly net revenue increased 149.7% year-over-year to $20.7 million; -- Gross profit increased 80.9% year-over-year to $7.0 million; -- Excluding non-cash charges reflecting the change in fair value of warrants issued and stock compensation, Non-GAAP net income increased 252.5% year-over-year to $3.8 million, or Non-GAAP fully diluted EPS $0.22, up 144.4% from $0.09 in 2008, on a greater share count; -- GAAP net loss was $6.6 million, or $0.39 loss per diluted share; -- Receivables declined from third quarter of 2009; -- Cash and cash equivalents were $20.3 million. Fiscal Year 2009 Financial Highlights -- Annual net revenue increased 68.3% year-over-year to $76.1 million, exceeding revised guidance; -- Gross margin was 37.9% due to the introduction of granular fertilizers in 2009; -- Operating income rose to $21.0 million from $13.7 million in 2008; -- Excluding non-cash charges reflecting the change in fair value of warrants issued, Non-GAAP net income attributable to common stockholders in 2009 was $16.2 million, with diluted net earnings per share of $1.14, up 62% from fiscal year 2008; -- GAAP net income was $5.7 million, or $0.40 earning per diluted share.
Mr.
China Agritech advises that it expects to file its Form 10K for the 2009
year with the U.S. Securities and Exchange Commission on or before
Fourth Quarter 2009 Results Summary of Financial Results (Thousand US dollars except earnings per share) For the Three Months Ended December 31, 2009 2008 Total revenue $20,750 $8,310 GAAP Net income (Loss) (6,663) 1,064 Stock-based compensation 564 13 Loss on change in fair value of warrants 9,894 -- Adjustments to the Net Income 10,458 13 Non-GAAP Net Income 3,795 1,077 GAAP Diluted earnings (loss) per share (0.39) 0.09 Adjustment to diluted EPS 0.61 0.00 Non-GAAP diluted EPS 0.22 0.09 Diluted avg. number of common shares 17,162,827 12,349,808
Net revenue for the fourth quarter of 2009 grew by 149.7% to
Gross profit increased 80.9% year-over-year to approximately
Selling expenses were
Income from operations was approximately
GAAP net loss was
Excluding non-cash charges for the change in fair value of warrants issued
and stock compensation, Non-GAAP net income attributable to common
shareholders for the fourth quarter of 2009 was
Fiscal Year 2009 Results Summary of Financial Results (Thousand US dollars except earnings per share) Fiscal year 2009 2008 Total revenue $76,130 $45,240 GAAP Net income (Loss) 5,690 8,642 Stock-based compensation 567 13 Loss on change in fair value of warrants 9,894 -- Adjustments to the Net Income 10,461 13 Non-GAAP Net Income 16,151 8,655 GAAP Diluted earnings per share 0.40 0.70 Adjustment to diluted EPS 0.74 0.00 Non-GAAP diluted EPS 1.14 0.70 Diluted avg. number of common shares 14,228,943 12,349,808
For the fiscal year 2009, net revenue increased year-over-year by 68.3% to
a record annual net sales of
Gross profit increased 41.9% to
Selling expenses increased 11.4% year-over-year to
Operating and administrative expenses were
Operating income in 2009 rose 52.8% to
Income taxes were
GAAP net income attributable to common shareholders was
As of
Highlights
On
Business Outlook
The Company's guidance for fiscal year 2010 includes revenues of
approximately
Mr.
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 866-386-1016 International Toll Dial-In Number: 656-723-9381 Conference ID # 63746799
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 # 63746799
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 .
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.
Use of Non-GAAP Financial Measures
The Company makes reference to Non-GAAP financial measures in portions of
"Management's Discussion of Financial Condition and Results of Operations."
Management believes that investors may find it useful to review our financial
results that exclude the non-cash expenses of stock based compensation and
changes in fair value of warrants, shown in the below chart, of
Management believes that these Non-GAAP financial measures are useful to investors in that they provide supplemental information to possibly better understand the underlying business trends and operating performance of the Company. The Company uses these Non-GAAP financial measures to evaluate operating performance. However, Non-GAAP financial measures should not be considered as an alternative to net income or any other performance measures derived in accordance with GAAP.
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@grayling.com CHINA AGRITECH, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS AS OF DECEMBER 31, 2009 AND 2008 (US Dollars) 2009 2008 ASSETS (Unaudited) (Audited) Current Assets Cash and cash equivalents $20,313,089 $11,952,235 Accounts receivable, net 39,256,098 34,773,115 Inventories 6,606,095 6,452,618 Advances to suppliers 25,348,687 10,795,357 Prepayments and other receivables 2,287,220 2,484,346 Total Current Assets 93,811,189 66,457,671 Property, plant and equipment, net 5,980,696 4,496,045 Construction in progress 424,006 961,551 Deposit for equipment -- 749,799 Intangible assets, net 397,507 -- Total Assets $100,613,398 $72,665,066 LIABILITIES AND STOCKHOLDERS'S EQUITY Current Liabilities Accounts payable $62,616 $3,327,281 Accrued expenses and other payables 1,394,357 221,954 Taxes payable 1,695,665 1,388,897 Warrant liabilities 20,157,869 -- Total Current Liabilities 23,310,507 4,938,132 Commitments and Contingencies Stockholders' Equity Preferred stock: $0.001 par value, 10,000,000 shares authorized, none issued -- -- Common stock: $0.001 par value; 100,000,000 shares authorized, 17,002,542* and 12,351,126* shares issued and outstanding as of December 31, 2009 and 2008 17,003 12,351 Additional paid in capital 34,698,080 26,161,228 Statutory reserves 2,195,818 5,425,407 Accumulated other comprehensive income 5,723,265 5,837,917 Retained earnings 34,668,725 25,361,597 Total China Agritech stockholders' equity 77,302,891 62,798,500 Noncontrolling Interest -- 4,928,434 Total Equity 77,302,891 67,726,934 Total Liabilities and Stockholders' Equity $100,613,398 $72,665,066 * as retroactively adjusted for the 1-for-4 reverse stock split on September 8, 2009 and the 2-for-1 forward stock split on February 1, 2010. CHINA AGRITECH, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME FOR THE YEARS ENDED DECEMBER 31, 2009 AND 2008 (US Dollars) 2009 2008 (Unaudited) (Audited) Net revenue $76,129,839 $45,240,212 Cost of revenue (47,244,887) (24,889,387) Gross profit 28,884,952 20,350,825 Operating expenses: Selling expenses (2,638,800) (2,369,763) Operating and administrative expenses (5,289,845) (4,265,655) Total operating expenses (7,928,645) (6,635,418) Income from operations 20,956,307 13,715,407 Other income/(expenses): Other income/(expense), net (7,225) (56,165) Interest income 27,688 91,984 Exchange (loss)/gain, net (3,788) 231,326 Changes in fair value of warrants classified as derivatives (9,894,410) -- Total other income/(expense), net (9,877,735) 267,145 Income before income taxes 11,078,572 13,982,552 Provision for income taxes (4,907,474) (4,151,782) Net income 6,171,098 9,830,770 Net income attributable to noncontrolling interest (481,452) (1,189,029) Net income attributable to China Agritech stockholders $5,689,646 $8,641,741 Earnings per share attributable to China Agritech common stockholders*: - Basic $0.41 $0.70 - Diluted $0.40 $0.70 Weighted average shares outstanding*: - Basic 14,039,152 12,349,808 - Diluted 14,228,943 12,349,808 * as retroactively adjusted for the 1-for-4 reverse stock split on September 8, 2009 and the 2-for-1 forward stock split on February 1, 2010. CHINA AGRITECH, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEARS ENDED DECEMBER 31, 2009 AND 2008 (US Dollars) 2009 2008 Cash flows from operating activities: (Unaudited) (Audited) Net income $6,171,098 $9,830,770 Adjustments to reconcile net income to net cash used in operating activities: Share-based compensation 566,807 12,965 Depreciation and amortization of property, plant and equipment 695,703 549,341 Amortization of intangible assets 41,826 -- Bad debts expense 320,960 195,616 Changes in fair value of warrants classified as derivatives 9,894,410 -- Decrease / (Increase) in current assets: Accounts receivable (4,858,975) (11,306,241) Inventories (164,082) (2,638,273) Advances to suppliers (14,566,555) 1,668,798 Prepayments and other receivable 185,291 (1,503,874) (Decrease) / Increase in current liabilities: Accounts payable (3,258,407) 3,226,288 Tax payables 308,913 (375,076) Accrued expenses and other payables 1,127,753 (553,730) Net cash used in operating activities (3,535,258) (893,416) Cash flows from investing activities: Acquisition of property, plant and equipment (881,685) (951,588) Acquisition of intangible assets (439,170) -- Payment for construction in progress -- (966,168) Acquisition of noncontrolling interest (1,000,000) -- Restricted cash -- 11,415 Net cash used in investing activities (2,320,855) (1,906,341) Cash flows from financing activities: Amount held in escrow account -- 2,000,000 Issuance of common stock for cash 2,410,096 -- Issuance of warrants for cash 11,805,632 -- Net cash provided by financing activities 14,215,728 2,000,000 Effect of exchange rate change on cash and cash equivalents 1,239 910,771 Net increase in cash and cash equivalents 8,360,854 111,014 Cash and cash equivalents, beginning of year 11,952,235 11,841,221 Cash and cash equivalents, end of year $20,313,089 $11,952,235 Supplement disclosure of cash flow information: Cash paid for interest $ -- $ -- Cash paid for income tax $ 4,481,792 $ 4,437,384 Noncash Investment and Financing Activity Acquisition of noncontrolling interest funded by issuance of stock $ 4,410,321 $ -- Options issued to directors and officers for services $ 566,807 $ 12,965 Offset of amounts due to/from stockholders $ -- $ 320,666 Three Months Ended Fiscal Year Ended December 31 December 31 2009 2008 2009 2008 Adjusted Net Income available to Common shareholders - non-GAAP $3,795,500 $1,077,435 $16,150,863 $8,654,706 Subtract (Add Back): Change in fair value of warrants $9,894,410 $-- $9,894,410 $-- Stock based compensation $564,104 $12,965 $566,807 $12,965 Net Income (Loss) - GAAP $(6,663,014) $1,064,470 $5,689,646 $8,641,741 Adjusted basic earning per share - non-GAAP $0.23 $0.09 $1.15 $0.70 Subtract: Change in fair value of warrant $0.61 $-- $0.70 $-- Stock based compensation $0.03 $0.00 $0.04 $0.00 Basic earning per share - GAAP $(0.41) $0.09 $0.41 $0.70 Adjusted diluted earning per share - non-GAAP $0.22 $0.09 $1.14 $0.70 Subtract: Change in fair value of warrant $0.58 $-- $0.70 $-- Stock based compensation $0.03 $0.00 $0.04 $0.00 Diluted earning per share - GAAP $(0.39) $0.09 $0.40 $0.70 Weighted average number of shares - GAAP Basic 16,411,685 12,349,808 14,039,152 12,349,808 Diluted 17,162,827 12,349,808 14,228,943 12,349,808 Weighted average number of shares - non-GAAP Basic 16,411,685 12,349,808 14,039,152 12,349,808 Diluted 17,162,827 12,349,808 14,228,943 12,349,808
SOURCE China Agritech, Inc.