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Yongye International Announces First Quarter 2010 Results


发布时间:2019-02-01 编辑:918

BEIJING, China, May 13 /PRNewswire-Asia/ -- Yongye International, Inc. (Nasdaq: YONG), ("Yongye" or the "Company") a leading developer, manufacturer, and distributor of Shengmingsu brand plant and animal nutrient products in the People's Republic of China ("PRC"), today announced its financial results for the quarter ended March 31, 2010.

First Quarter 2010 Highlights

-- Revenue increased 100.5% to $24.9 搜狐财经million from the first quarter of

2009

-- Gross profit increased 112.1% to $13.9 million

-- Gross margin increased 304 basis points to 55.6%

-- Income from operations increased 71.3% to $5.6 million

-- Net income increased 32.2% to $4.4 million, or $0.10 per diluted share,

compared to $3.3 million, or $0.12 per diluted share, in the first

quarter of 2009

-- Adjusted net income, which excludes the impact of the non-cash change

in fair value of derivative liabilities of $12,534, increased 40.7% to

$4.4 million, or $0.10 per diluted share, compared to $3.1 million, or

$0.12 per diluted share, in the same period last year(*)

-- Cash flow from operations increased to $0.5 million from negative

$1.7 million, while doubling revenue

-- Signed an agreement to acquire the development rights for a lignite

coal resource project in Inner Mongolia, PRC for $35.1 million

"Our strong first quarter growth was driven by our successful geographic expansion via our retail-oriented distribution model," said Mr. Zishen Wu, Chairman and Chief Executive Officer. "We increased the number of independently-owned, Yongye branded stores in our distribution network by over 50% during the first three months of the year, pushing our geographic reach further into central and Southern China. In addition, our aggressive and integrated marketing strategy continues to yield positive results. Our rapid sales growth, rising brand recognition, and growing store network are a testament to the strength of our Shengmingsu brand, the uniqueness of our sales and marketing model, and the strong local support of our distribution partners."

First Quarter 2010 Results

Revenue for the three months ended March 31, 2010 was $24.9 million compared to $12.4 million for the same period in 2009, an increase of 100.5%. The increase in revenue was due to higher sales penetration in existing markets and the rapid expansion of the Company's distribution network. As of March 31, 2009, Yongye had 13,880 branded stores in its network, compared to 9,110 stores at the end of 2009, and 1,125 stores at the end of 2008.

Gross profit was $13.9 million for the three months ended March 31, 2010 compared to $6.5 million for the three months ended March 31, 2009, an increase of 112.1%. Gross margin was 55.6% compared to 52.5% in the same period last year. The increase in gross margin was primarily the result of the Company transitioning its manufacturing process in house during the fourth quarter of last year and increasing economies of scale.

Selling, general and administrative expenses were $8.1 million, or 32.6% of sales, in the first quarter of 2010, compared to $3.0 million, or 23.8% of sales, in the same period last year. The increase in margin was primarily due to additional expenses related to advertising and promotional activities and, to a lesser extent, increases in freight expenses, salaries, professional fees and travel expenses. Operating income was $5.6 million compared to $3.3 million in the same period last year.

Net income was $4.4 million, or $0.10 per diluted share, in the first quarter of 2010, compared to net income of $3.3 million, or $0.12 per diluted share, in the first quarter of 2009. The Company recorded a non-cash change in fair value of derivative liabilities of $12,534 in the first quarter of 2010. Excluding the impact of this non-cash item, adjusted net income was $4.4 million, or $0.10 per diluted share, compared to adjusted net income of $3.1 million, or $0.12 per diluted share in the same period last year.(*)

(*) See the table following this press release for a reconciliation of net

income and diluted EPS to exclude the non-cash change in fair value of

derivative liabilities.

Financial Condition

As of March 31, 2010, the Company had $51.0 million in cash, compared to $65.5 million as of December 31, 2009. Working capital was $98.9 million, compared to $107.7 million at the end of 2009. As of year-end 2009, the Company had only $0.5 million in long-term debt. Stockholders' equity totaled $145.8 million as of March 31, 2010, compared to $132.6 million at the end of 2009.

Recent Developments

-- In May 2010, Yongye announced that the Company started the construction

of a new production facility in Wuchuan County, Hohhot Municipal City,

Inner Mongolia Autonomous Region.

-- In March 2010, Yongye announced that both the Company's plant and

animal nutrient products won the "Special Houji Award" at the 16th

annual China Yangling Agricultural Hi-Tech Fair (the "CAF") in December

2009.

-- In March 2010, Yongye signed an agreement to acquire the development

rights for a lignite coal resource project in Inner Mongolia, PRC for

$35.1 million.

Business Outlook

From 2010 to 2012, Yongye expects to achieve at least a 50% annual growth rate in revenue. The Company also reaffirms its previously issued guidance. The Company expects 2010 annual revenues of between $160 million and $165 million, representing an increase of between 63% and 68% over last year's revenue of $98.1 million. The Company expects adjusted net income, which excludes the impact of certain non-cash expenses such as the change in fair value of warrants and share-based compensation, of between $42 million and $45 million, representing an increase of between 60% and 72% over 2009 adjusted net income of $26.2 million. The Company also reaffirms its previously announced estimate that the number of independently-owned, branded stores selling Yongye's Shengmingsu products will increase to at least 20,000 by the end of 2010, which represents a 120% increase over the 2009 year-end figure of 9,110.

The Company recently announced its intention to acquire development right of a lignite coal resource project and construct a new production facility nearby. Acquiring this mine is of great strategic importance as humic acid, which is extracted from lignite coal, accounts for the largest percentage of the Company's cost of goods sold and it is important for Yongye to secure this crucial resource at a cost effective price. This acquisition will help the Company ensure that its fast growing Shengmingsu business won't be subject to fluctuations in market price, quality or delivery of this key raw material.

The new production facility that the Company began construction recently will help the Yongye continue to meet the strong demand for its products in the domestic agricultural market in China. In addition, Yongye expects the new facility, once complete, to lead to significant cost savings as a result of the increasing vertical integration of the Company's business. Upon completion, the new facility will expand annual production capacity for Yongye's Shengmingsu plant nutrient product from 10,000 tons per annum currently to 30,000 tons per annum, and that for its Shengmingsu animal nutrient product from 1,000 tons per annum currently to 11,000 tons per annum. The new facility is expected to be operational by the end of the third quarter of 2010.

Capital expenditures for the new production facility are expected to be between $15 million to $20 million. The Company plans to use proceeds from its December 2009 financing towards the construction.

Mr. Wu added, "We expect to continue to see strong organic growth in our business driven by geographic expansion into new markets, increased penetration in existing markets, additional marketing and brand building efforts, and expanded production capacity. We look forward to completing the construction of our new production facility in the third quarter and expect to increase gross and operating margins over time by pursuing this vertical integration strategy."

Conference Call

The Company will host a conference call at 10:00 a.m. Eastern Time on May 14, 2010, to discuss its first quarter 2010 results.

To participate in the live conference call, please dial the following number five to ten minutes prior to the scheduled conference call time: (877) 407-5374. International callers should dial +1 (702) 894-2288. The conference pass code is 74617871.

For those who are unable to participate on the live conference call, a replay will be available for fourteen days. To access the replay, please dial (800) 642-1687. International callers should dial +1 (706) 645-9291. The replay pass code is 74617871.

Use of Adjusted Financial Measures

GAAP results for the three months ended March 31, 2010 include a non-cash change in fair value of derivative liabilities. To supplement the Company's condensed consolidated financial statements presented on a GAAP basis, the Company has provided adjusted financial information excluding the impact of this item in this release. It is a departure of U.S. GAAP; however, the Company's management believes that this adjusted measure provides investors with a better understanding of how the results relate to the Company's historical performance. A reconciliation of the adjustments to GAAP results appears in the table accompanying this press release. This additional adjusted information is not meant to be considered in isolation or as a substitute for GAAP financials. The adjusted financial information that the Company provides also may differ from the adjusted information provided by other companies.

About Yongye International, Inc.

Yongye International is a Chinese organic agricultural nutrient company headquartered in Beijing, with its production facilities located in Hohhot, Inner Mongolia, China. Yongye markets two lines of organic nutrient products: a liquid nutrient product which is sprayed on plants and a powder nutrient product which is added to animal feed. Both products are sold under the brand name "Shengmingsu," which means "life essential" in Chinese. The Company's patented and patent pending formulas and proprietary extraction processes allow it to create products that increase crop yields and improve the health of livestock. The Company sells its products to provincial or regional distributors, who then channel those products to a carefully selected network of independently-owned Yongye branded stores in China. For more information, please visit the Company's website at http://www.yongyeintl.com .

Safe Harbor Statement

This press release contains certain statements that may include

"forward-looking statements." All statements other than statements of historical fact included herein are "forward-looking statements." These forward-looking statements are often identified by the use of forward-looking terminology such as "believes," "expects" or similar expressions, involving known and unknown risks and uncertainties. Although the Company believes that the expectations reflected in these forward-looking statements are reasonable, they do involve assumptions, risks and uncertainties, and these expectations may prove to be incorrect. You should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company's actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of factors, including the risk factors discussed in the Company's periodic reports that are filed with the Securities and Exchange Commission and available on the SEC's website (http://www.sec.gov ). All forward-looking statements attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by these risk factors. Other than as required under the securities laws, the Company does not assume a duty to update these forward-looking statements.

YONGYE INTERNATIONAL, INC. AND SUBSIDIARIES

UNAUDITED CONSOLIDATED STATEMENTS OF INCOME

For the Three Months Ended

March 31, 2010 March 31, 2009

Sales $24,934,716 $12,435,775

Cost of sales 11,077,957 5,902,607

Gross profit 13,856,759 6,533,168

Selling expenses 6,288,003 2,620,298

Research & development expenses 100,565 288,572

General and administrative expenses 1,851,254 345,157

Income from operations 5,616,937 3,279,141

Other expenses/(income)

Interest expense, net 7,458 5,958

Other expenses, net 48,783 441

Decrease in fair value of derivative

liabilities (12,534) (208,011)

Total other expenses/(income), net 43,707 (201,612)

Earnings before income tax expense 5,573,230 3,480,753

Income tax expense 944,488 155,447

Net income 4,628,742 3,325,306

Less: Net income attributable to the

noncontrolling interest 257,449 18,522

Net income attributable to Yongye

International, Inc. 4,371,293 3,306,784

Earnings per share:

Basic $0.10 $0.12

Diluted $0.10 $0.12

Weighted average shares used in

computation:

Basic 44,532,241 26,760,258

Diluted 44,696,427 26,760,258

YONGYE INTERNATIONAL, INC. AND SUBSIDIARIES

UNAUDITED CONSOLIDATED BALANCE SHEETS

March 31, 2010 December 31, 2009

Current assets

Cash $50,989,166 $65,518,181

Accounts receivable, net of allowance

for doubtful accounts 8,774,317 6,161,796

Inventories 46,174,371 42,033,261

Prepayments 6,023,486 6,211,896

Prepaid expenses 343,106 112,879

Other receivables 323,532 383,841

Total Current Assets 112,627,978 120,421,854

Property, plant and, equipment, net 9,048,876 9,156,915

Intangible asset, net 82,414 85,058

Land use right, net 4,145,645 4,166,987

Deposits for assets acquisition 20,019,163 --

Other assets 4,426,209 2,029,012

Goodwill 9,947,462 9,945,862

Total Assets $160,297,747 $145,805,688

Current liabilities

Short-term bank loan $-- $2,925,174

Long-term loans and payables -

current portion 431,041 331,693

Accounts payable - related party 880,167 880,026

Accounts payable - third parties 4,033,650 344,774

Income tax payable 4,901,251 4,082,424

Advance from customers 31,311 29,157

Accrued expenses 894,985 479,609

Due to a related party 785,765 1,663,191

Other payables 411,182 553,286

Derivative liabilities - fair value

of warrants 1,367,671 1,380,205

Total Current Liabilities 13,737,023 12,669,539

Long-term loans and payables 769,737 545,327

Total Liabilities 14,506,760 13,214,866

Equity

Yongye International, Inc.

shareholders' equity:

Common stock: par value $.001;

75,000,000 shares authorized;

44,532,241 shares issued and

outstanding at March 31, 2010 and

December 31, 2009 44,532 44,532

Additional paid-in capital 118,583,308 118,583,308

Subscription receivable -- (8,550,000)

Retained earnings 19,877,738 15,506,445

Accumulated other comprehensive

income 349,491 329,139

Total Yongye International, Inc.

shareholders' equity 138,855,069 125,913,424

Noncontrolling interest 6,935,918 6,677,398

Total Equity 145,790,987 132,590,822

Total Liabilities and Equity $160,297,747 $145,805,688

YONGYE INTERNATIONAL, INC. AND SUBSIDIARIES

UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS

For the Three Months Ended

March 31, 2010 March 31, 2009

CASH FLOWS FROM OPERATING ACTIVITIES

Net income $4,628,742 $3,325,306

Adjustments to reconcile net income

to net cash provided by / (used in)

operating activities:

Depreciation and amortization 357,170 107,236

Reversal of bad debt provision -- (73,701)

Decrease in fair value of derivative

liabilities (12,534) (208,011)

Changes in operating assets and

liabilities:

Accounts receivable (2,611,556) (3,302,662)

Inventories (4,134,389) (1,466,830)

Prepayments 132,734 (18,828)

Due from a related party -- (72,763)

Prepaid expenses (230,217) 97,734

Other receivables 60,371 424,992

Other assets (2,563,580) --

Accounts payable- related party -- 43,366

Accounts payable- third parties 3,688,858 --

Income tax payable 818,179 140,799

Advance from customers 2,149 (1,789,453)

Accrued expenses 415,120 1,051,410

Other payables (38,885) 70,298

Net Cash Provided by / (Used in)

Operating Activities 512,162 (1,671,107)

CASH FLOWS FROM INVESTING ACTIVITIES

Deposits made for assets acquisition (20,019,368) --

Proceeds from sale of property, plant

and equipment 92,629 --

Purchase of property, plant and

equipment (1,068,030) (1,446,782)

Net Cash Used in Investing Activities (20,994,769) (1,446,782)

CASH FLOWS FROM FINANCING ACTIVITIES

Proceeds from long-term loans and

payables 400,280 89,534

Repayment of long-term loans and

payables (81,665) (29,870)

Repayment of short-term loans (2,925,675) --

Proceeds from common stock issued 8,550,000 --

Net Cash Provided by Financing

Activities 5,942,940 59,664

EFFECT OF FOREIGN EXCHANGE RATE

CHANGES ON CASH 10,652 5,016

NET DECREASE IN CASH (14,529,015) (3,053,209)

Cash and cash equivalent at beginning

of year 65,518,181 4,477,477

Cash and cash equivalent at end of

year $50,989,166 $1,424,268

Supplemental cash flow information:

Cash paid for income taxes 126,310 22,464

Cash paid for interest expense 34,962 9,833

YONGYE INTERNATIONAL, INC. AND SUBSIDIARIES

RECONCILIATION OF NON-GAAP FINANCIAL DATA

FOR THE THREE MONTHS ENDED MARCH 31, 2010 AND 2009

Three Months Ended Three Months Ended

March 31, 2010 March 31, 2009

Net Diluted Net Diluted

Income EPS Income EPS

Adjusted Amount $4,358,759 $0.10 $3,098,773 $0.12

Change in fair value of derivative

liabilities ($12,534) $0.00 ($208,011) $0.00

GAAP amount per consolidated

statement of income $4,371,293 $0.10 $3,306,784 $0.12

Weighted average number of shares -

diluted 44,696,427 26,760,258

本文源自: AG亚游集团

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