Archive for May, 2011
BEIJING, May 16, 2011 /PRNewswire/ — eLong, Inc. (NASDAQ: LONG), a leading online travel service provider in China, today announced a strategic investment by Tencent Holdings Limited (SEHK 00700), one of the largest providers of Internet, mobile and telecommunication value-added services in China, as well as by Expedia, Inc. (NASDAQ: EXPE), the world’s largest online travel company and eLong’s controlling shareholder.
Tencent has acquired approximately 16% of the outstanding shares for a total purchase price of $84.4 million and becomes the second largest shareholder of eLong. Expedia has acquired approximately 8% of the outstanding shares for $41.2 million and now holds 56% of the outstanding shares.
The strategic investment in eLong represents the first significant investment in the travel market by Tencent. eLong and Tencent plan to deepen their cooperation in the future, including forming a business partnership to develop online travel products and distribute eLong’s hotel supply to Tencent’s online community of 674 million(1) active user accounts in China. eLong’s hotel supply portfolio now covers over 150,000 hotel properties worldwide, including more than 19,000 hotels in China, and more than 130,000 internationally through its seamless connection with Expedia.
“We at eLong could not be more excited about working with China’s online market leader to develop new travel offerings and give more Internet users access to the largest global selection of hotels in the world,” said Guangfu Cui, CEO of eLong. “Given Tencent’s user base and its reach across multiple platforms, including portal, mobile, instant messaging and social networking, we believe consumers throughout China will benefit from this partnership, while eLong and Expedia supply partners will enjoy incremental access to significant internet traffic and customers in China.”
“Tencent is focused on creating value for our users. We believe this partnership will combine our online platforms with eLong’s online travel expertise to bring innovative and quality online travel services to our users. Through the implementation of our open platform strategy, we will continue to enhance our service offering to fulfill users’ various lifestyle needs online,” said Martin Lau, President of Tencent Holdings Limited.
“China is a key region for us from a strategic perspective,” said Dara Khosrowshahi, president and CEO of Expedia, Inc. “Aligning ourselves with the online industry leader in China, and increasing our own investment in eLong, strengthens our position in this critical market, and will allow eLong to strengthen its outstanding online hotel services and provide air and hotel products to more and more customers in China.”
About eLong
eLong, Inc. (NASDAQ: LONG) is a leading online travel company in China. Headquartered in Beijing, eLong has a national presence across China, and uses web-based distribution technologies and a 24-hour call center to provide consumers with accurate travel information and high quality online and offline hotel and air booking services. eLong’s products offer business and leisure customers meaningful savings and a worry-free travel booking experience by empowering consumers to make informed travel decisions by providing convenient, easy to use online features such as maps, destination guides, photographs, virtual tours, user reviews and search tools. In addition to a selection of more than 19,000 hotels in 700 cities across China, eLong also offers consumers the ability to make bookings at over 135,000 international hotels in more than 100 countries worldwide, and can fulfill domestic and international air ticket reservations in over 80 major cities across China. eLong operates websites including http://www.elong.com, http://www.elong.net, and http://www.xici.net.
About Tencent
Tencent aims to enrich the interactive online experience of Internet users by providing a comprehensive range of Internet and wireless value-added services. Through its various online platforms, including Instant Messaging QQ, web portal QQ.com, the QQ Game platform under Tencent Games, multi-media social networking service Qzone and wireless portal, Tencent services the largest online community in China and fulfills the user’s needs for communication, information, entertainment and e-Commerce on the Internet. Tencent has three main streams of revenues: Internet value-added services, mobile and telecommunications value-added services and online advertising. Shares of Tencent Holdings Limited are traded on the Main Board of the Stock Exchange of Hong Kong Limited, under stock code 00700. The Company became one of the 43 constituents of the Hang Seng Index (HSI) on June 10, 2008. For more information, please visit www.tencent.com/ir.
About Expedia, Inc.
Expedia, Inc. is the largest online travel company in the world, with an extensive brand portfolio that includes more than 90 localized Expedia.com®- and Hotels.com®-branded sites; leading U.S. discount travel site Hotwire®; leading agency hotel company Venere.com™; Egencia®, the world’s fifth largest corporate travel management company; the world’s largest travel community TripAdvisor® Media Group; destination activities provider ExpediaLocalExpert®; luxury travel specialist Classic Vacations®; and China’s second largest booking site eLong™. The company delivers consumers value in leisure and business travel, drives incremental demand and direct bookings to travel suppliers, and provides advertisers vast opportunity to reach the most valuable audience of in-market travel consumers anywhere through TripAdvisor Media Group and Expedia Media Solutions. Expedia also powers bookings for some of the world’s leading airlines and hotels, top consumer brands, high traffic websites, and thousands of active affiliates through Expedia® Affiliate Network. For more information, visit www.expediainc.com.
Forward-Looking Statements
Statements in this press release concerning the future business, plans, strategies, operating results, financial condition and objectives of management for future operations of Tencent, eLong, Inc. and/or Expedia, Inc. are “forward-looking” statements within the meaning of Section 27A of the Securities Act of 1933, as amended, Section 21E of the Securities Exchange Act of 1934, as amended, and as defined in the Private Securities Litigation Reform Act of 1995. Words such as “anticipate,” “believe,” “estimate,” “expect,” “forecast,” “intend,” “may,” “plan,” “project,” “predict,” “should” and “will” and similar expressions as they relate to any of Tencent, eLong, Inc. or Expedia are intended to identify such forward-looking statements, but are not the exclusive means of doing so. These forward-looking statements are based upon management’s current views and expectations with respect to future events and are not a guarantee of future performance. Furthermore, these statements are, by their nature, subject to a number of risks and uncertainties that could cause Tencent’s, eLong’s and/or Expedia’s actual results, performance, time frames or achievements to be materially different from any future results, performance, time frames or achievements expressed or implied by the forward-looking statements. Given these risks, uncertainties and other factors, you should not place undue reliance on these forward-looking statements. In evaluating these statements, you should specifically consider the risks described in Tencent’s filings with the Hong Kong Stock Exchange and eLong’s and Expedia’s filings with the United States Securities and Exchange Commission, as applicable. Except as required by law, none of Tencent, eLong or Expedia assumes any obligation to update these forward-looking statements publicly, or to update the reasons actual results could differ materially from those anticipated in these forward-looking statements, even if new information becomes available in the future. All forward-looking statements contained in this press release are qualified by reference to this cautionary statement.
THE WOODLANDS, Texas, May 16, 2011 (GLOBE NEWSWIRE) — Repros Therapeutics Inc.(R) (Nasdaq:RPRX – News) today announced financial results for the first quarter ended March 31, 2011.
Financial Results
Net loss for the three-month period ended March 31, 2011, was ($2.1) million or ($0.20) per share as compared to a net loss of ($1.1) million or ($0.17) per share for the same period in 2010. The increase in loss for the three month period ended March 31, 2011 as compared to the same period in 2010 was primarily due to increased expenses in clinical development for Androxal(R) and Proellex(R).
Research and development (“R&D”) expenses increased 223% or approximately $1.0 million to $1.5 million for the three month period ended March 31, 2011 as compared to $458,000 for the same period in the prior year. Our primary R&D expenses for the three month periods ended March 31, 2011 and 2010 are shown in the following table (in thousands):
| Research and Development |
Three Months
Ended
March 31, 2011 |
Three Months
Ended
March 31, 2010 |
Variance |
Change (%) |
| Operating and occupancy |
$193 |
$177 |
$16 |
9% |
| Payroll and benefits |
191 |
120 |
71 |
59% |
| Androxal(R) clinical development |
871 |
14 |
857 |
6,121% |
| Proellex(R) clinical development |
225 |
147 |
78 |
53% |
| Total |
$1,480 |
$458 |
$1,022 |
223% |
The increase in R&D expenses is primarily due to the increased clinical development expenses related to Androxal(R) as a result of the initiation of the Phase 2 study as a potential treatment for Type 2 diabetes in hypogonadal men and the Phase 2B study in men with secondary hypogonadism. R&D expenses were further increased due to the ongoing dose escalating study being conducted on Proellex(R) initiated in the third quarter of 2010. Additionally, payroll and benefits expenses increased due to increased headcount and the discontinuation of the salary reduction program put in place in August 2009 for all salaried R&D employees.
General and administrative expenses, (“G&A”), decreased 5% or approximately $34,000 to $635,000 for the three month period ended March 31, 2011 as compared to $669,000 for the same period in the prior year. Our primary G&A expenses for the three month period ended March 31, 2011 and 2010 are shown in the following table (in thousands):
General and Administrative |
Three Months
Ended
March 31, 2011 |
Three Months
Ended
March 31, 2010 |
Variance |
Change (%) |
| Payroll and benefits |
$196 |
$153 |
$43 |
28% |
| Operating and occupancy |
439 |
516 |
(77) |
(15)% |
| Total |
$635 |
$669 |
($34) |
(5)% |
G&A payroll and benefits expenses include a charge for non-cash stock option expense of $78,000 for the three month period ended March 31, 2011 as compared to $74,000 for the same period in the prior year. Additionally, salaries for the three month period ended March 31, 2011 were $104,000 as compared to $63,000 for the same period in the prior year. The increase in salaries is primarily due to the discontinuation of the salary reduction program put in place in August 2009 for all salaried employees other than Mr. Podolski, the Company’s President and CEO, and Mr. Podolski’s salary was revised to a 25% reduction.
G&A operating and occupancy expenses, which include expenses to operate as a public company, decreased 15% or approximately $77,000 to $439,000 for the three month period ended March 31, 2011 as compared to $516,000 for the same period in the prior year. The decrease is primarily due to a decrease in professional services.
As of March 31, 2011 we had 11,976,209 shares of common stock outstanding.
About Repros Therapeutics Inc.
Repros Therapeutics Inc. focuses on the development of new drugs to treat hormonal and reproductive system disorders.
The Repros Therapeutics Inc. logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=7738
Any statements made by the Company that are not historical facts contained in this release are forward-looking statements that involve risks and uncertainties, including the ability to raise additional needed capital on a timely basis in order for it to continue its operations, have success in the clinical development of its technologies and such other risks which are identified in the Company’s most recent Annual Report on Form 10-K and in any subsequent quarterly reports on Form 10-Q. These documents are available on request from Repros Therapeutics or at www.sec.gov. Repros disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
For more information, please visit the Company’s website at http://www.reprosrx.com.
| REPROS THERAPEUTICS INC. AND SUBSIDIARY |
| (A Development Stage Company) |
|
|
|
| CONSOLIDATED STATEMENTS OF OPERATIONS |
| (unaudited and in thousands except per share amounts) |
|
|
|
|
Three Months Ended |
|
March 31, |
|
2011 |
2010 |
|
|
|
|
|
|
| Revenues and other income |
$ — |
$ — |
|
|
|
| Expenses |
|
|
| Research and development |
1,480 |
458 |
| General and administrative |
635 |
669 |
| Total expenses |
2,115 |
1,127 |
|
|
|
| Net loss |
$ (2,115) |
$ (1,127) |
|
|
|
| Net loss per share – basic and diluted |
$ (0.20) |
$ (0.17) |
|
|
|
| Weighted average shares used in loss per share calculation: |
|
|
| Basic |
10,790 |
6,457 |
| Diluted |
10,790 |
6,457 |
|
|
|
|
|
|
| CONSOLIDATED BALANCE SHEETS |
| (unaudited and in thousands) |
|
|
|
|
March 31,
2011 |
December 31,
2010 |
|
|
|
|
|
|
| Cash and cash equivalents |
$ 12,630 |
$ 2,957 |
| Prepaid expenses and other currents assets |
305 |
328 |
| Fixed assets (net) |
5 |
7 |
| Patents (net) |
1,197 |
1,173 |
| Total assets |
$ 14,137 |
$ 4,465 |
|
|
|
| Accounts payable and accrued expenses |
$ 1,451 |
$ 1,298 |
| Stockholders’ equity |
12,686 |
3,167 |
| Total liabilities and stockholders’ equity |
$ 14,137 |
$ 4,465 |
Contact:
Joseph S. Podolski
Chief Executive Officer
(281) 719-3447
Pyramid Oil Company (NYSE Amex: PDO) today announced financial results for its first quarter ended March 31, 2011.
Revenue increased 33% to $1.3 million from $1.0 million in the first quarter last year. The increase was largely attributable to higher average crude oil prices, which increased $21.57 per barrel of oil equivalent (BOE) to $97.12 from $75.55 per average BOE in the 2010 first quarter. Revenue also benefitted from a 3% increase in production volumes during the quarter.
Operating income increased 65% to $376,000 from $229,000 in last year’s first quarter. Operating margin in the first quarter was 28%, up from 23% in the comparable year-ago quarter. Net income improved 77% to $320,000, or $0.07 per share, from $181,000, or $0.04 per share, in the comparable year-ago quarter.
Pyramid generated operating cash flow of $1.4 million, up sharply from $176,000 during the first three months of fiscal 2010. At March 31, 2011, the Company’s balance sheet included $4.9 million in cash, cash equivalents and short-term investments; total current assets of $6.3 million and working capital of $4.5 million.
“Our first quarter financial performance reflects the benefits of a strong price environment and our lean cost structure,” said John Alexander, president and CEO. “During the quarter we maintained our focus on increasing production volumes in an effort to capitalize on our strong business model.”
“Much of our attention was devoted to drilling operations on the Pike 1-H, our first Joint Venture well with Victory Oil Company. We received very encouraging test results during the drilling operations on this horizontal well, and moved in a pumping unit as we prepared to put it into production. However, in the weeks following completion, the well has generated significant water volumes, and we believe this has interrupted the initial flow of oil. We are currently working with several outside consultants in hopes of identifying and overcoming these technical issues.”
Mr. Alexander said the Company has established a roster of additional drilling targets on its core properties in Kern County, California, and plans to drill up to two sidetrack wells and one potential new well during the latter half of the year. “Given the tight supply of contract rigs, we anticipate drilling on our next well will commence sometime this fall. In the meantime, we will continue to evaluate projects and opportunities that could accelerate our growth and enhance shareholder value.”
About Pyramid Oil Company
Pyramid Oil Company has been in the oil and gas business continuously since incorporating in 1909. Pyramid acquires interests in land and producing properties through acquisition and lease, and then drills and/or operates crude or natural gas wells in an effort to discover or produce oil and/or natural gas. More information about the Company can be found at: http://www.pyramidoil.com.
Safe Harbor Statement
Certain statements and information included in this press release constitute “forward-looking statements” within the meaning of the Federal Private Securities Litigation Reform Act of 1995, including statements regarding the completion and testing of wells. Forward-looking statements involve known and unknown risks and uncertainties, which may cause the Company’s actual results in future periods to differ materially from forecasted results. Factors that could cause or contribute to such differences include, but are not limited to the value of crude oil or the performance of wells.
PYRAMID OIL COMPANY
STATEMENTS OF OPERATIONS
(UNAUDITED)
Three months ended March 31,
2011 2010
-------------- --------------
REVENUES:
Oil and gas sales $ 1,326,298 $ 1,001,739
Gain on sale of fixed assets 1,012 0
-------------- --------------
1,327,310 1,001,739
-------------- --------------
COSTS AND EXPENSES:
Operating expenses 413,656 339,920
General and administrative 224,720 207,367
Taxes, other than income and payroll taxes 36,855 27,820
Provision for depletion, depreciation and
amortization 185,528 149,387
Valuation allowances 48,533 25,141
Accretion expense 16,335 6,213
Other costs and expenses 25,487 17,240
-------------- --------------
951,114 773,088
-------------- --------------
OPERATING INCOME 376,196 228,651
-------------- --------------
OTHER INCOME (EXPENSE):
Interest income 13,352 7,953
Other income 500 2,797
Interest expense (1,506) (181)
-------------- --------------
12,346 10,569
-------------- --------------
INCOME BEFORE INCOME TAX PROVISION 388,542 239,220
Income tax provision
Current 46,200 20,000
Deferred 22,700 38,550
-------------- --------------
68,900 58,550
-------------- --------------
NET INCOME $ 319,642 $ 180,670
============== ==============
BASIC INCOME PER COMMON SHARE $ 0.07 $ 0.04
============== ==============
DILUTED INCOME PER COMMON SHARE $ 0.07 $ 0.04
============== ==============
Weighted average number of common shares
outstanding 4,679,770 4,677,728
============== ==============
Diluted average number of common shares
outstanding 4,687,030 4,686,018
============== ==============
PYRAMID OIL COMPANY
BALANCE SHEETS
ASSETS
March 31, December 31,
2011 2010
(Unaudited) (Audited)
-------------- --------------
CURRENT ASSETS:
Cash and cash equivalents $ 1,841,418 $ 1,535,532
Short-term investments 3,069,270 3,058,528
Trade accounts receivable (net of reserve
for doubtful accounts of $4,000 in 2011
and 2010) 629,833 508,457
Joint interest billing receivable 192,433 --
Crude oil inventory 95,736 86,361
Prepaid expenses and other assets 195,098 230,876
Deferred income taxes 245,100 245,100
-------------- --------------
TOTAL CURRENT ASSETS 6,268,888 5,664,854
-------------- --------------
PROPERTY AND EQUIPMENT, at cost:
Oil and gas properties and equipment
(successful efforts method) 19,219,961 18,101,529
Capitalized asset retirement costs 389,463 389,463
Drilling and operating equipment 1,946,805 1,946,805
Land, buildings and improvements 1,073,918 1,066,571
Automotive, office and other property and
equipment 1,195,396 1,182,613
-------------- --------------
23,825,543 22,686,981
Less: accumulated depletion, depreciation,
amortization and valuation allowance (18,886,570) (18,687,908)
-------------- --------------
TOTAL PROPERTY AND EQUIPMENT 4,938,973 3,999,073
-------------- --------------
OTHER ASSETS
Deferred income taxes 685,800 708,500
Deposits 250,000 250,000
Other Assets 17,380 7,380
-------------- --------------
TOTAL OTHER ASSETS 953,180 965,880
-------------- --------------
TOTAL ASSETS $ 12,161,041 $ 10,629,807
============== ==============
PYRAMID OIL COMPANY
BALANCE SHEETS
LIABILITIES AND STOCKHOLDERS' EQUITY
March 31, December 31,
2011 2010
(Unaudited) (Audited)
-------------- --------------
CURRENT LIABILITIES:
Accounts payable $ 1,200,689 $ 73,374
Accrued professional fees 98,235 122,506
Accrued taxes, other than income taxes 61,701 63,361
Accrued payroll and related costs 78,562 60,365
Accrued royalties payable 211,390 193,052
Accrued insurance 46,840 86,888
Accrued income taxes 59,000 12,800
Current maturities of long-term debt 31,660 13,473
-------------- --------------
TOTAL CURRENT LIABILITIES 1,788,077 625,819
-------------- --------------
LONG TERM DEBT, net of current maturites 59,944 26,946
-------------- --------------
LIABILITY FOR ASSET RETIREMENT OBLIGATIONS 1,251,528 1,235,193
-------------- --------------
TOTAL LIABILITIES 3,099,549 1,887,958
-------------- --------------
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS' EQUITY:
Preferred stock-no par value; 10,000,000
authorized shares; no shares issued or
outstanding -- --
Common stock-no par value; 50,000,000
authorized shares; 4,683,853 shares
issued and outstanding 1,639,228 1,639,228
Retained earnings 7,422,264 7,102,621
-------------- --------------
TOTAL STOCKHOLDERS' EQUITY 9,061,492 8,741,849
-------------- --------------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 12,161,041 $ 10,629,807
============== ==============
CONTACTS:
John H. Alexander
President and CEO
Pyramid Oil Company
661-325-1000
Geoff High
Principal
Pfeiffer High Investor Relations, Inc.
303-393-7044
MILWAUKEE, WI — (Marketwire) — 05/16/11 — ZBB Energy Corporation (NYSE Amex: ZBB), a leading developer of intelligent, renewable energy power platforms, today reported its results of operations for the quarter ended March 31, 2011
“The efficient completion of the Tier acquisition by the end of the quarter was an essential milestone during the quarter for achieving our overall business plan,” said Eric Apfelbach, CEO and President. “With Tier completely on-board, we now have much better control of our product development as we begin to enter our targeted commercial markets. In addition to closing Tier, we continue to grow our backlog and expand our global reach particularly into Asia. I elaborate on these and other aspects of our business plan later on in the press release.”
Net loss on the basis of accounting principles generally accepted in the United States (GAAP) was $2,868,789 or $0.12 per share in the three months ended March 31, 2011, compared with $2,021,704 or $0.16 per share in the quarter ended March 31, 2010. Net loss in the latest quarter was greater due to increased expenses including Tier Electronics consolidation, acquisition and depreciation and amortization expenses of $832,000. Offsetting these costs was a $180,000 benefit recognized for a refundable research and development tax credit we expect to receive from the Australian Tax Organization (ATO) related to qualified expenditures we incurred during the nine month period ended March 31, 2011. Net loss was $6,741,364 or $0.33 per share in the nine months ended March 31, 2011, compared with $6,859,085 or $0.56 per share in the quarter ended March 31, 2010.
Revenues for the three months ended March 31, 2011 and 2010 were $205,971 and $188,780. This revenue increase resulted from power electronics products shipped during the quarter. Revenues for the nine months ended March 31, 2011 and 2010 were $440,652 and $1,556,148, respectively. The revenue difference of $1,115,496 for the nine months ending March 31, 2011 is due to the delay in certain orders that require PECC inverter certification to UL standard 1741 and an order that requires field commissioning completion. The decrease in engineering and development revenues for this quarter and for the preceding nine months is due to the Company completing the entire Advanced Electricity Storage Technologies project (“AEST”) with the Commonwealth of Australia.
Total costs and expenses for the three months ended March 31, 2011 and 2010 were $3,179,828 and $2,178,498, respectively. The increase of $1,001,330 in the three months ended March 31, 2011 was primarily due to the following:
-- A net increase in cost of product sales of $221,000.
-- Consolidation, acquisition and amortization expenses of $832,000 due to
the acquisition of Tier Electronics.
-- A net increase to Advanced Engineering and Development expense of
$200,000 due to an increase in the Company's engineering and
development activities for its next generation battery module and PECC
systems.
-- Reduction of impairment and other charges of $48,000.
Total costs and expenses for the nine months ended March 31, 2011 and 2010 were $7,212,991 and $8,347,682, respectively. This decrease of $1,134,691 in the nine months ended March 31, 2011 was primarily due to the following:
-- decreased costs of product sales of $598,766 due to a decrease in
product shipments and a decrease in cost of engineering and development
revenues of $1,293,110 due to the completion of activities required
under the AEST contract during the year ended June 30, 2010 and a
decrease in other engineering and development contracts.
-- increases in advanced engineering and development expenses of
$1,492,762 primarily due to an increase in the Company's engineering
and development activities for its next generation battery module and
the PECC systems, less decreases in rework expense of approximately
$200,000.
-- $0 of impairment and other charges during the 2011 period compared to
$828,089 of costs of impairment and other charges during the 2010
period.
Stockholders’ equity increased during the quarter to $3.1 million, exceeding the minimum NYSE AMEX requirement of $2.0 million. The Company’s cash balance at the end of the quarter without the additional Honam funding or ATO R&D credit was $1.9 million. Current backlog exceeds $3 million.
Highlights for the quarter include:
-- Tier acquisition complete. First power electronics products shipped
during the quarter.
-- Booked first two orders from China. These orders came from a large,
global PV manufacturer and from a large industrial company both
located in China.
-- Signed the Sunpower contract announced last fall officially placing
it in backlog.
-- Completed an equity financing of $2 million priced at market with no
warrants or investment banking fees.
-- Completed our third and fourth Socius tranches pursuant to which
Socius purchased a total of $2.5 million of Series A preferred stock
and 2,491,185 shares of common stock for $3.4 million (average of
$1.38 per share).
-- UL 1741 certification in process (see below).
-- Prepared and submitted our proposed compliance plan to the NYSE Amex on
January 3, 2011. Our plan was accepted by the NYSE Amex on February 4,
2011.
-- Prepared and submitted our application for certification of our 48c
tax credit program on January 7, 2011. The current upgrade of our
facility to manufacture the V3 battery system is directly applicable
to the 48C tax credit we were awarded in 2010.
Subsequent to the end of quarter:
-- Closed a strategic partnership with Honam Petrochemical of South Korea
that includes $3 million in payments over four quarters and royalty
payments for sales. Received the first $1 million payment in April
2011.
-- ZBB Awarded Contract from Eaton Corporation to Deliver 500kWH Energy
Storage System to Fort Sill (Army)
-- Shipped the ruggedized transportable military PECC system to a major
defense contractor.
-- Determined eligibility for refundable Australian R&D credit for fiscal
year 2011 estimated to be approximately $250,000 in cash.
-- The new V3 prototype entered the test phase ahead of schedule.
“Let me add just a little more business plan color to the above list,” said Eric Apfelbach, President and CEO.
-- "With the orders coming from China, we are evaluating long-term
strategies for pursuing the large potential market that exists in
China. A Company our size requires developing partnerships in China
that make sense for us as well as our Chinese partners. This
opportunity exists now and we're moving forward quickly and carefully.
-- The Tier acquisition has gone smoothly; however, the increased workload
at Tier due to UL 1741 certification priorities and additional ZBB
related orders has stretched our resources. We are hiring necessary
personnel to accelerate the power electronics development schedule.
The UL 1741 certification process is going well, however the downside
of being "first" at UL, is that it is taking longer to test and
document our system than anticipated. We expect to be able to ship the
30 kW orders related to UL 1741 certification in backlog when the
certification process is completed later this quarter or early next
quarter. This creates a bulge in our backlog situation, but not enough
to exceed our electronics or battery manufacturing capability.
Additional certification of other sizes currently in backlog will take
a bit longer. These short-term delays have not impacted order
prospects requiring UL 1741 certification.
-- The Honam partnership and the Australian R&D credit are providing
multi-million dollar alternative funding sources. These and other
non-equity funding opportunities that we are pursuing are
substantially minimizing future equity financings and shareholder
dilution.
-- We're increasingly encouraged with the quality of our sales pipeline,
particularly, the commercial segments. While we continue to work
military and government orders, the value proposition in the commercial
sectors we are targeting continues to improve due to increased use of
renewables, increased diesel fuel expense, and demand for truly smart
storage. These value propositions are significant drivers in our power
electronics and battery product development. We believe our current
product trajectory with the UL 1741 PECC and the V3 module will deliver
the industry leading storage solution.
-- Our V3 prototype is currently under test ahead of schedule."
Investor Conference Call – 10:00 a.m. Central time, Monday, May 16, 2011
A conference call to discuss the financial and operating results and company’s outlook will be held on Monday, May 16, 2011, at 10:00 a.m. US Central (11:00 a.m. Eastern). The conference call will be hosted by Eric Apfelbach, President and CEO. A brief presentation by Mr. Apfelbach will be followed by a question and answer period.
To participate in the conference call, callers from within the United States and Canada, dial the toll free number (888) 567-1602. For international callers, dial the toll number (201) 604-5049. The conference call reference is “ZBB.”
For support during a call press *0 on your phone and a conferencing coordinator will assist you. The presentation will be posted on the Company’s web site at www.zbbenergy.com following the conference call.
About ZBB Energy Corporation
ZBB Energy Corporation (NYSE Amex: ZBB) provides advanced electrical power management platforms targeted at the growing global need for distributed renewable energy, energy efficiency, power quality, and grid modernization. ZBB and its power electronics subsidiary, Tier Electronics, LLC have developed a portfolio of intelligent power management platforms that directly integrate multiple renewable and conventional onsite generation sources with rechargeable zinc bromide flow batteries and other storage technology. The company also offers advanced systems to directly connect wind and solar equipment to the grid and systems that can form various levels of micro-grids. Tier electronics participates in the energy efficiency markets through their hybrid vehicle control systems, and power quality markets with their line of regulation solutions. Together, these platforms solve a wide range of electrical system challenges in global markets for utility, governmental, commercial, industrial and residential end customers. A developer and manufacturer of its modular, scalable and environmentally friendly power systems (“ZESS POWR™”), ZBB Energy was founded in 1998 and is headquartered in Wisconsin, USA with offices also located in Perth, Western Australia.
Safe Harbor Statement
Certain statements made in this press contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities and Exchange Act of 1934, as amended, that are intended to be covered by the “safe harbor” created by those sections. Forward-looking statements, which are based on certain assumptions and describe our future plans, strategies and expectations, can generally be identified by the use of forward-looking terms such as “believe,” “expect,” “may,” “will,” “should,” “could,” “seek,” “intend,” “plan,” “estimate,” “anticipate” or other comparable terms. Forward-looking statements in this press release may address the following subjects among others: statements regarding the sufficiency of our capital resources, expected operating losses, expected revenues, expected expenses and our expectations concerning our business plans and strategy. Forward-looking statements involve inherent risks and uncertainties which could cause actual results to differ materially from those in the forward-looking statements, as a result of various factors including those risks and uncertainties described in the Risk Factors and in Management’s Discussion and Analysis of Financial Condition and Results of Operations sections of our most recently filed Annual Report on Form 10-K and our subsequently filed Quarterly Reports on Form 10-Q. We urge you to consider those risks and uncertainties in evaluating our forward-looking statements. We caution readers not to place undue reliance upon any such forward-looking statements, which speak only as of the date made. Except as otherwise required by the federal securities laws, we disclaim any obligation or undertaking to publicly release any updates or revisions to any forward-looking statement contained herein (or elsewhere) to reflect any change in our expectations with regard thereto or any change in events, conditions or circumstances on which any such statement is based.
ZBB ENERGY CORPORATION
Condensed Consolidated Balance Sheets
March 31, 2011
(Unaudited) June 30, 2010
-------------- --------------
Assets
Current assets:
Cash and cash equivalents $ 1,924,537 $ 1,235,635
Accounts receivable 175,072 7,553
Inventories 1,890,089 702,536
Prepaid and other current assets 89,356 149,098
Refundable income taxes 180,000 -
-------------- --------------
Total current assets 4,259,054 2,094,822
-------------- --------------
Long-term assets:
Property, plant and equipment, net 4,099,961 3,568,823
Intangible assets, net 1,988,264 -
Goodwill 803,079 803,079
-------------- --------------
Total assets $ 11,150,358 $ 6,466,724
============== ==============
Liabilities and Shareholders' Equity
Current liabilities:
Bank loans and notes payable $ 809,352 $ 395,849
Accounts payable 1,079,034 869,179
Accrued expenses 823,800 539,100
Deferred revenues 931,241 325,792
Accrued compensation and benefits 308,422 765,106
-------------- --------------
Total current liabilities 3,951,849 2,895,026
-------------- --------------
Long-term liabilities:
Bank loans and notes payable 4,050,174 2,120,421
Total liabilities 8,002,023 5,015,447
-------------- --------------
Shareholders' equity
Series A preferred stock ($0.01 par value,
$10,000 face value) 10,000,000 authorized
355.4678 and 0 shares issued 3,626,791 -
Common stock ($0.01 par value);
150,000,000 authorized
26,787,952 and 14,915,389 shares issued 267,880 149,155
Additional paid-in capital 58,127,616 49,770,987
Notes receivable - common stock (3,620,214) -
Treasury stock - 13,833 shares (11,136) (11,136)
Accumulated other comprehensive (loss) (1,606,561) (1,563,052)
Accumulated (deficit) (53,636,041) (46,894,677)
-------------- --------------
Total shareholders' equity 3,148,335 1,451,277
-------------- --------------
Total liabilities and shareholders'
equity $ 11,150,358 $ 6,466,724
============== ==============
ZBB ENERGY CORPORATION
Condensed Consolidated Statements of Operations (Unaudited)
Three months ended Nine months ended
March 31, March 31,
-------------------------- --------------------------
2011 2010 2011 2010
------------ ------------ ------------ ------------
Revenues
Product sales and
revenues $ 205,971 $ 29,669 $ 255,713 $ 967,455
Engineering and
development
revenues - 159,111 184,939 588,693
------------ ------------ ------------ ------------
Total Revenues 205,971 188,780 440,652 1,556,148
------------ ------------ ------------ ------------
Costs and Expenses
Cost of product
sales 221,463 - 300,521 899,287
Cost of
engineering and
development
revenues - 170,594 - 1,293,110
Advanced
engineering and
development 1,311,994 735,355 2,737,849 1,245,087
Selling, general,
and
administrative 1,425,886 1,141,069 3,782,875 3,748,839
Depreciation and
amortization 220,485 83,622 391,746 333,270
Impairment and
other equipment
charges - 47,858 - 828,089
------------ ------------ ------------ ------------
Total Costs and
Expenses 3,179,828 2,178,498 7,212,991 8,347,682
------------ ------------ ------------ ------------
Loss from
Operations (2,973,857) (1,989,718) (6,772,339) (6,791,534)
------------ ------------ ------------ ------------
Other Income
(Expense)
Interest income 2,021 8,074 6,231 55,163
Interest expense (76,953) (54,261) (155,829) (117,155)
Other income
(expense) - 14,201 573 (5,559)
------------ ------------ ------------ ------------
Total Other
Income
(Expense) (74,932) (31,986) (149,025) (67,551)
------------ ------------ ------------ ------------
Loss before
provision for
Income Taxes (3,048,789) (2,021,704) (6,921,364) (6,859,085)
Provision (benefit)
for Income Taxes (180,000) - (180,000) -
------------ ------------ ------------ ------------
Net Loss $ (2,868,789) $ (2,021,704) $ (6,741,364) $ (6,859,085)
============ ============ ============ ============
Net Loss per share-
Basic and diluted $ (0.12) $ (0.16) $ (0.33) $ (0.56)
Weighted average
shares-basic and
diluted:
Basic 24,384,459 12,933,506 20,343,159 12,285,867
Diluted 24,384,459 12,933,506 20,343,159 12,285,867
ZBB ENERGY CORPORATION
Condensed Consolidated Statements of Cash Flows (Unaudited)
Nine Months Ended March 31,
--------------------------
2011 2010
------------ ------------
Cash flows from operating activities
Net loss $ (6,741,364) $ (6,859,085)
Adjustments to reconcile net loss to net cash
used in operating activities:
Depreciation of property, plant and equipment 258,088 333,270
Amortization of intangible assets 133,658 -
Change in inventory allowance - 29,699
Impairment and other equipment charges - 828,089
Stock-based compensation 602,003 303,791
Changes in assets and liabilities, net of the
effects of business acquisition
Accounts receivable 56,737 288,746
Inventories (337,621) 562,017
Prepaids and other current assets 59,742 89,410
Other receivables-interest - 19,746
Refundable income taxes (180,000) -
Accounts payable 68,853 (252,245)
Accrued compensation and benefits (140,851) 402,360
Accrued expenses 35,333 423,835
Deferred revenues 245,587 (655,819)
------------ ------------
Net cash used in operating activities (5,939,835) (4,486,186)
------------ ------------
Cash flows from investing activities
Expenditures for property and equipment (772,892) (156,284)
Acquisition of business, net of cash acquired (225,922) -
Bank certificate of deposit - 1,000,000
------------ ------------
Net cash (used in) provided by investing
activities (998,814) 843,716
------------ ------------
Cash flows from financing activities
Proceeds from bank loans and notes payable 1,300,000 156,000
Repayments of bank loans and notes payable (306,744) (342,367)
Proceeds from issuance of debenture notes
payable 517,168 -
Proceeds from issuance of Series A preferred
stock 3,030,000 -
Proceeds from issuance of common stock net of
issuance costs 3,077,582 3,777,670
Purchase of treasury stock - (11,136)
------------ ------------
Net cash provided by financing activities 7,618,006 3,580,167
------------ ------------
Effect of exchange rate changes on cash and
cash equivalents 9,545 17,444
------------ ------------
Net increase (decrease) in cash and cash
equivalents 688,902 (44,859)
Cash and cash equivalents - beginning of period 1,235,635 2,970,009
------------ ------------
Cash and cash equivalents - end of period $ 1,924,537 $ 2,925,150
============ ============
Cash paid for interest $ 126,914 $ 111,927
Supplemental schedule of non-cash investing and
financing activities:
Conversion of debenture notes payable to
Series A preferred stock $ 524,678 $ -
Issuance of common stock for discounted notes
receivable 3,529,644 -
Issuance of common stock as consideration for
equity issuance costs 683,634 -
Conversion of cash settled RSU's to stock
settled RSU's 315,833 -
Issuance of warrants for purchase of property
and equipment 11,834 -
MALVERN, PA — (Marketwire) — 05/16/11 — Orthovita, Inc. (NASDAQ: VITA), a spine and orthopedic biosurgery company, announced today that it has agreed to be acquired by Stryker Corporation for $3.85/share in cash in a transaction that results in the largest single upfront payment for an orthobiologics company. The purchase price represents a 58% and 67% premium to the 30 day and 60 day volume weighted average prices, for a total value transaction value of approximately $318 million.
In July 2007, Essex Woodlands Health Ventures Fund VII, LP (Essex Woodlands), managed a multi-faceted deal, which was spearheaded by Partner Scott Barry. Essex Woodlands proactively contacted the company about a transaction that would address a number of issues hindering the company’s growth and development. Essex Woodlands led an equity financing of $32.5M to remove the company’s capital overhang and became the largest shareholder of the company at the time. In addition, Essex Woodlands played a key role in negotiating the repurchase of an ongoing revenue interest obligation and in securing a $45M debt facility used to repurchase the revenue interest obligation. Essex Woodlands also recruited two highly experienced senior executives in Bill Tidmore, former president and chairman of Depuy, and Paul Thomas, former CEO of LifeCell Corporation, to the Board of Directors. During the 3 ½ years of Essex Woodlands’ investment, Orthovita became the leading independent orthobiologic company with its revenues growing from $58M to $94.7M and the company turned EBITDA and cash flow positive.
Antony Koblish, Orthovita President and CEO stated, “With the innovative financing initiatives which assisted our restructuring and recapitalization efforts exhibited by Essex Woodlands in general, and Scott Barry in particular, we aggressively and successfully pursued this transaction. Scott continued to significantly contribute to the company with his strong leadership and commitment to the Company, helping us work towards this successful outcome.”
Scott Barry commented, “At Orthovita, Inc., the team was committed to maximizing the value of Orthovita’s orthobiologic and surgery platforms. With this acquisition by Stryker Corporation, Orthovita will have in place an unprecedented level of resources that in combination with Stryker’s industry-leading sales and marketing team will allow for maximizing the potential of their products and existing pipeline.”
The acquisition of Orthovita, Inc. marks the third announced exit for Essex Woodlands within the past 30 days. The first exit was announced on April 18, 2011 for Prism Pharmaceuticals, an Essex Woodlands Health Ventures Fund VI, LP investment, which merged with Baxter International for $338M. Prism, which is owned 55% by Essex Woodlands and was formed in 2004, develops drugs for cardiovascular conditions. A second exit was announced by Essex Woodlands Health Ventures Fund VII, LP on April 21, 2011 by Healthcare Brands International (HBI). HBI, which develops OTC products, sold its Swedish subsidiary, Antula Healthcare, to Meda AB for SEK 1.8B (US$288M).
Stryker Corporation’s acquisition of Orthovita, Inc. marks the fourth growth equity exit and sixth overall exit of Essex Woodlands’ portfolio over the past 15 months. Prior growth equity exits include BioForm, which was acquired by Merz Pharma Group on February 16th, 2010 for an enterprise value of $300M, followed by ATS Medical, which was acquired by Medtronic on April 29th, 2010 for an enterprise value of $370M. Growth equity investments in China also exhibited strong results: China Cord Blood Corporation went public November 30th, 2009 and MicroPort Scientific Corporation completed its IPO on the Hong Kong Stock Exchange, raising $200M on September 24, 2010.
About Essex Woodlands
With $2.5 billion under management, Essex Woodlands is one of the largest and oldest venture capital and private equity firms pursuing investments in pharmaceuticals, biotechnology, medical devices, health care services, and health information technology. Since its founding in 1985, Essex Woodlands has maintained its singular commitment to the healthcare industry and has been involved in the founding, investing, and/or management of over 100 healthcare companies ranging across all sectors, stages and geography. The team is comprised of 25 senior investment professionals with offices in Palo Alto, Houston, New York and London.
TEL AVIV, Israel, May 16, 2011 (GLOBE NEWSWIRE) — Top Image Systems™ (TIS™), Ltd. (Nasdaq:TISA) (TASE:TISA), the leading ECM (Enterprise Content Management) solutions provider, announced today that it has launched mobile banking solutions that allows financial institutions to better respond to customer demand for mobile based capabilities using smart phones. TIS’s new solutions offer a variety of applications addressed to meet the unique needs of Banks, including check deposit, utility bill payment and invoice payment.
These new applications address the banking industry’s need to offer customers value-added services that will result in a significant advantage in today’s competitive banking market. Checks, utility bills and invoices are easily and securely sent to the bank for deposit or payment using a camera-equipped smart phone.
TIS solutions comply with financial regulations and provide banks with cutting edge and appealing technology to offer customers. TIS’s banking customers are able to recognize considerable cost savings as document receipt and processing are fully automated and processed more quickly and accurately. In turn, financial institutions can deliver a better banking experience to their customers, saving them valuable time while maintaining the high security standards they have come to expect from their bank.
“Launching our mobile banking solutions platform demonstrates our commitment to the banking sector as well as highlights our increasing influence in the segment as we remain focused on executing our growth strategy,” commented Clive Williams Senior Vice President of TIS Business Banking Unit.
“The impact of smart phone technology on everyday life is undeniable and developing applications that make the most of this trend is imperative. The momentum behind mobile banking has financial institutions looking to accelerate adoption of mobile banking solutions. As a key player in ECM banking solutions, it is only natural that we offer innovative smart phone technology as part of our eFLOW™ product suite that improves our banking customers ability to attract and retain their customers,” added Clive Williams Senior Vice President of TIS Business Banking Unit.
TIS MOBILE BANKING SOLUTIONS
The new mobile banking solutions are part of TIS’s successful eFLOW Banking Platform — a unique solution designed to address the specific needs of local and global banks. Any information entering the bank, whether paper based or digital, in the front or back office is processed, understood, classified and delivered fully automated through the business processing chain with minimal errors.
For over a decade, TIS has been solving the real life challenges that come with MRC, with the many satisfied customers serving as a testament to effectiveness of TIS and its solutions. TIS MRC solutions are able to overcome all of the most pressing digital content management issues facing banks today, including: processing for wrong image orientation, skewed documents, dark shadows, document compression and conversion to enable automation or straight through processing.
The eFLOW Banking Platform handles all the heavy lifting, in the background, and without the involvement of the bank or its customers. For example, a customer can capture the upside down image of a check from anywhere – even in places with low ambient lighting – simply hit the “Send” from a smart phone, and know that the data will be sent securely and will readable by the bank. Behind the scene, TIS’s eFLOW Banking Platform is capturing the image, rotating it, “cleaning” shadows and automatically adjusting contrast; it then extracts the check’s MICR line, compares the amount, verifies the signature, and reads the account number and balance before sending it on to bank’s system for clearing.
About Top Image Systems (TIS)
Top Image Systems (TIS) is a leading innovator of enterprise solutions for managing and validating content entering organizations from various sources. Whether originating from mobile, electronic, paper or other sources, TIS solutions deliver the content to applications that drive the organization. TIS’s eFLOW Platform is a common platform for the company’s solutions. TIS markets its platform in more than 40 countries through a multi-tier network of distributors, system integrators and strategic partners. Visit the company’s website www.topimagesystems.com for more information.
The Top Image Systems logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=4212
Caution Concerning Forward-Looking Statements
Certain matters discussed in this news release are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause our actual results to be materially different from any future results expressed or implied in those forward looking statements. Words such as “will,” “expects,”, “anticipates,” “estimates,” and words and terms of similar substance in connection with any discussion of future operating or financial performance identify forward-looking statements. These statements are based on management’s current expectations or beliefs and are subject to a number of risks and uncertainties that could cause actual results to differ materially including, but not limited to, risks in product development, approval and introduction plans and schedules, rapid technological change, customer acceptance of new products, the impact of competitive products and pricing, the lengthy sales cycle, proprietary rights of TIS and its competitors, risk of operations in Israel, government regulation, litigation, general economic conditions and other risk factors detailed in the Company’s most recent annual report on Form 20-F and other subsequent filings with the United States Securities and Exchange Commission. We are under no obligation to, and expressly disclaim any obligation to, update or alter our forward-looking statements, whether as a result of new information, future events or otherwise.
CONTACT: Dana Rubin
Director of Corporate Marketing and Investor Relations
dana.rubin@topimagesystems.com
+972 3 767 9114
HAIKOU, China, May 13, 2011 /PRNewswire-Asia-FirstCall/ — China Pharma Holdings, Inc. (NYSE AMEX: CPHI) (“China Pharma” or the “Company”), a leading fully-integrated specialty pharmaceutical company in China, today announced that the Company’s Chief Financial Officer, Mr. Frank Waung, has been invited to present at Piper Jaffray’s Eighth Annual China Growth Conference in New York City on May 17, 2011. Conference details are as follows:
|
Conference:
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Piper Jaffray Eighth Annual China Growth Conference
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Date:
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Tuesday, May 17, 2011
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Presentation time:
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3:30 p.m. ET
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|
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Location:
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Le Parker Meridien
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118 West 57th Street
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New York, NY, 10019
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Mr. Waung will be available to meet with investors throughout the conference. Please contact your respective institutional sales representative for further details.
About China Pharma Holdings, Inc.
China Pharma Holdings, Inc. is a rapidly growing specialty pharmaceutical company that develops, manufactures and markets a diversified portfolio of products focused on conditions with a high incidence and high mortality rates in China, including cardiovascular, CNS, infectious, and digestive diseases. The Company’s cost-effective, high margin business model is driven by market demand and supported by eight scalable GMP-certified product lines covering the major dosage forms. In addition, the Company has a broad and expanding nationwide distribution network across 30 provinces, municipalities and autonomous regions. The Company’s wholly owned subsidiary, Hainan Helpson Medical & Biotechnology Co., Ltd., is located in Haikou City, Hainan Province. For more information about China Pharma Holdings, Inc., please visit www.chinapharmaholdings.com .
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Contact:
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China Pharma Holdings, Inc.
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CCG Investor Relations
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Phone: +86-898-6681-1730 (China)
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Kalle Ahl, CFA, Account Manager
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Email: hps@chinapharmaholdings.com
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Phone: (646) 833-3417 (New York)
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Email: kalle.ahl@ccgir.com
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Vivian Chen, Sr. Market Intelligence Exec.
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Phone: (646) 701-7445 (New York)
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Email: vivian.chen@ccgir.com
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SOURCE China Pharma Holdings, Inc.
HOUSTON, May 13, 2011 /PRNewswire/ — Adams Resources & Energy, Inc., (NYSE Amex: AE), announced first quarter 2011 unaudited net earnings of $5,583,000 or $1.32 per common share on revenues of $697,188,000. This compares to unaudited first quarter 2010 net earnings of $1,794,000 or $.43 per common share. Net cash provided by operating activities totaled $718,000 for the three month period ended March 31, 2011.
Chairman, K. S. “Bud” Adams, Jr., indicated the improved results were from a $2.8 million pre-tax gain on the sale of certain oil and gas producing interests coupled with $3.2 million in pre-tax inventory liquidation gains as the Company sold its crude oil inventories into a rising market. The Company has also experienced earnings improvement in its transportation segment as demand for the Company’s petrochemical hauling services has improved substantially. Adams added that the Company continues to avoid bank debt and other forms of debenture obligations and the total of cash balances and short-term marketable securities stood at $21,566,000 as of March 31, 2011.
A summary of operating results follows:
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|
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First Quarter
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|
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2011
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2010
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|
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Operating Earnings (Expense)
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|
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Marketing
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$ 6,546,000
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$ 3,662,000
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Transportation
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1,992,000
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861,000
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Oil and gas
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2,046,000
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316,000
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Administrative expenses
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(2,109,000)
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(2,264,000)
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|
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8,475,000
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2,575,000
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|
|
|
|
|
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Interest income (expense), net
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48,000
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(20,000)
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Income tax (provision) benefit
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(2,940,000)
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(761,000)
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|
|
|
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Net earnings
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$ 5,583,000
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$ 1,794,000
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The information in this release includes certain forward-looking statements that are based on assumptions that in the future may prove not to have been accurate. A number of factors could cause actual results or events to differ materially from those anticipated. Such factors include, among others, (a) general economic conditions, (b) fluctuations in hydrocarbon prices and margins, (c) variations between commodity contract volumes and actual delivery volumes, (d) unanticipated environmental liabilities or regulatory changes, (e) counterparty credit default, (f) inability to obtain bank and/or trade credit support, (g) availability and cost of insurance, (h) changes in tax laws, (i) the availability of capital, (j) changes in regulations, (k) results of current items of litigation, (l) uninsured items of litigation or losses, (m) uncertainty in reserve estimates and cash flows, (n) ability to replace oil and gas reserves, (o) security issues related to drivers and terminal facilities, (p) commodity price volatility, (q) demand for chemical based trucking operations, (r) successful completion of drilling activity, (s) financial soundness of customers and suppliers and (t) adverse world economic conditions. These and other risks are described in the Company’s reports that are on file with the Securities and Exchange Commission.
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UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF EARNINGS
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|
|
(In thousands, except per share data)
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|
|
|
|
|
|
March 31,
|
March 31,
|
|
|
2011
|
2010
|
|
|
|
|
|
|
Revenues
|
$ 697,188
|
$ 533,785
|
|
|
|
|
|
|
Costs, expenses and other
|
(688,665)
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(531,230)
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|
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Income tax (provision)
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(2,940)
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(761)
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|
|
|
|
|
|
Net earnings
|
$ 5,583
|
$ 1,794
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|
|
|
|
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Basic and diluted net earnings
|
|
|
|
|
per common share
|
$ 1.32
|
$ .43
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|
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|
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Dividends per common share
|
$ –
|
$ –
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|
|
|
|
|
|
|
|
|
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEET
|
|
|
(In thousands)
|
|
|
March 31,
|
December 31,
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|
|
2010
|
2010
|
|
|
|
|
|
|
ASSETS
|
|
|
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Cash and marketable securities
|
$ 21,566
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$ 29,032
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|
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Other current assets
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264,264
|
217,944
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|
|
Total current assets
|
285,830
|
246,976
|
|
|
|
|
|
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Net property & equipment
|
56,862
|
47,589
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|
|
Deposits and other assets
|
3,265
|
6,740
|
|
|
$ 345,957
|
$ 301,305
|
|
|
|
|
|
|
LIABILITIES AND EQUITY
|
|
|
|
|
Total current liabilities
|
$ 243,734
|
$ 206,998
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|
|
Other long-term liabilities
|
6,485
|
4,152
|
|
|
Shareholders’ equity
|
95,738
|
90,155
|
|
|
$ 345,957
|
$ 301,305
|
|
|
|
|
|
|
Contact:
Rick Abshire
(713) 881-3609
CHENGDU, China, May 13, 2011 /PRNewswire-Asia-FirstCall/ — Tianyin Pharmaceutical Co., Inc. (NYSE Amex: TPI), a pharmaceutical company that specializes in patented biopharmaceutical medicine, modernized traditional Chinese medicine, branded generics and other pharmaceuticals today announced that TPI has received the China’s SFDA’s approval for its anti-diabetic drug Gliclazide Tablets (80 mg formulation).
Gliclazide is an oral anti-diabetic drug that is used for the control of hyperglycemia in gliclazide-response diabetes mellitus of stable, mild, non-ketosis prone, maturity-onset. It is used when diabetes could not be managed by proper dietary adjustment and exercise or when not suitable for insulin therapy.
TPI is anticipating that its Gliclazide Tablets to make its market entry in July this year.
About Diabetes Mellitus
Diabetes Mellitus, or Diabetes, is a group of metabolic diseases that are featured with high blood sugar with lack of insulin, or due to cells do not respond to the insulin that is produced. This high blood sugar causes the classical symptoms: polyuria (frequent urination), polydipsia (increased thirst) and polyphagia (increased hunger). Later complications include vascular disease, peripheral neuropathy, and predisposition to infection. Treatment for Diabetes includes diet, exercise, and drugs that reduce glucose levels, such as insulin and oral antihyperglycemic drugs. Prognosis for Diabetes varies with degree of glucose control. There are two main categories of diabetes — type 1 and type 2, which can be distinguished by a combination of features. The terms including the age of onset (juvenile or adult) or type of treatment (insulin- or non-insulin–dependent) are no longer accurate because of overlap in age groups and treatments between disease types (www.merckmanuals.com).
About Gliclazide
Gliclazide is an oral anti-diabetic (hypoglycemic) drug which is classified as a sulfonylurea. It has been marketed as Glyloc and Reclide in India and Diamicron in Canada. Gliclazide is used for control of hyperglycemia in gliclazide-responsive diabetes of stable, mild, non-ketosis prone, maturity-onset or adult type. It is used when diabetes cannot be controlled by proper dietary management and exercise or when insulin therapy is not appropriate. Gliclazide binds to sulfonylurea receptors on the surface of the Beta islet cells found in the pancreas. This binding effectively closes the potassium ion channels. This decreases the efflux of potassium from the cell which leads to the depolarization of the cell. This causes voltage dependent calcium ion channels to open increasing the calcium influx. The calcium can then bind to and activate calmodulin which leads to exocystosis of insulin vesicles leading to insulin release (http://en.wikipedia.org/wiki/Gliclazide).
About Diabetes in China
Diabetes is one of the most common endocrine disorders in the world. The World Health Organization (WHO) estimates that worldwide, there are currently 220 million people living with diabetes. Diabetes is becoming an important chronic disease in China. In 2010, there were 95 million cases of diabetes in China, of which, 52 million and 43 million were found in rural and urban areas, respectively. By the end of 2020, it is estimated that the prevalence will increase to 117 million. The urbanization rates, obesity and population aging are several major drivers for the increasing type 2 diabetes incidence in China (http://www.researchandmarkets.com).
About TPI
Headquartered at Chengdu, China, TPI is a pharmaceutical company that specializes in the development, manufacturing, marketing and sales of patented biopharmaceutical, modernized traditional Chinese medicines, branded generics and other pharmaceuticals. TPI currently manufactures a comprehensive portfolio of 56 products, 23 of which are listed in the highly selective national medicine reimbursement list, 7 are included in the essential drug list of China. TPI’s pipeline targets various high incidence healthcare indications. TPI has an extensive nationwide distribution network with a sales force of 730 sales representatives out of totaled 1,365 employees.
For more information about TPI, please visit: http://www.tianyinpharma.com.
Safe Harbor Statement
The Statements which are not historical facts contained in this press release are forward-looking statements that involve certain risks and uncertainties including but not limited to risks associated with the uncertainty of future financial results, additional financing requirements, development of new products, government approval processes, the impact of competitive products or pricing, technological changes, the effect of economic conditions and other uncertainties detailed in the Company’s filings with the Securities and Exchange Commission.
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For more information, please contact:
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James Jiayuan Tong M.D. Ph.D.
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Chief Financial Officer, Chief Business & Development Officer
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Director
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Tianyin Pharmaceutical Co., Inc.
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Web: http://www.tianyinpharma.com
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Email: Dr.Tong@tianyinpharma.com
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Tel: +86-28-8551-6696 (Chengdu, China)
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+86-134-3655-0011 (China)
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+1-949-350-6999 (U.S.)
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Address: 23rd Floor, Unionsun Yangkuo Plaza
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No. 2, Block 3, South Renmin Road
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Chengdu, 610041
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China
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SOURCE Tianyin Pharmaceutical Co., Inc.
CHARLOTTE, N.C., May 12, 2011 /PRNewswire/ — Tree.com, Inc. (NASDAQ: TREE), today announced that it has reached a definitive agreement to sell substantially all of the operating assets of its Home Loan Center subsidiary to Discover Financial Services (NYSE: DFS), headquartered in Riverwoods, Illinois for a net purchase price of approximately $55.9 million.
Home Loan Center, which operates as LendingTree Loans, a correspondent lending company, originates and processes consumer mortgage loans in all fifty states and the District of Columbia. The sale will add a home loan component to Discover’s direct-to-consumer banking products, which include credit cards, personal loans, private student loans, certificates of deposit, savings accounts and Roth individual retirement accounts.
“We believe this transaction is a significant step forward for Tree.com,” said Doug Lebda, chairman and chief executive officer of Tree.com. “This move enables us to bring more focus to our core lead generation business at a time when demand for LendingTree leads is particularly strong. In addition to the purchase price, this transaction will unlock significant cash that can be used to invest in our other verticals as we continue towards revenue diversification.”
“Discover is acquiring a proven operating platform that we can scale by leveraging our brand and lending expertise,” said Carlos Minetti, president of consumer banking and operations for Discover. “This will enable us to expand our line of banking products and provide home loans to consumers.”
The transaction is subject to various closing conditions and the approval of the stockholders of Tree.com. The acquisition is expected to close by the end of 2011.
About Tree.com, Inc.
Tree.com, Inc. (NASDAQ: TREE) is the parent of several brands and businesses that provide information, tools, advice, products and services for critical transactions in our customers’ lives. Tree.com, Inc. is the parent company of wholly owned operating subsidiaries: LendingTree, LLC and Home Loan Center, Inc., which does business as LendingTree Loans. Our family of brands includes: LendingTree.com®, LendingTree Loans, GetSmart.com®, RealEstate.com®, DegreeTree.com, HealthTree.com, LendingTreeAutos.com, DoneRight.com, and InsuranceTree.com. These brands serve as an ally for consumers who are looking to comparison shop for loans, real estate and other services from multiple businesses and professionals who will compete for their business.
Tree.com, Inc. is headquartered in Charlotte, N.C. and maintains operations solely in the United States. For more information, please visit www.tree.com.
Additional Information and Where to Find It
This press release may be deemed to be solicitation material in respect of the proposed transaction discussed above. In connection with the proposed transaction, Tree.com plans to file a proxy statement with the Securities and Exchange Commission. STOCKHOLDERS ARE ADVISED TO READ THE PROXY STATEMENT AND ANY OTHER RELEVANT DOCUMENTS FILED WITH THE SEC WHEN THEY BECOME AVAILABLE BECAUSE THOSE DOCUMENTS WILL CONTAIN IMPORTANT INFORMATION ABOUT THE PROPOSED TRANSACTION. The final proxy statement will be mailed to our stockholders. Stockholders may obtain a free copy of the proxy statement when it becomes available, and other documents filed by us with the SEC, at the SEC’s web site at http://www.sec.gov. Free copies of the proxy statement, when it becomes available, and our other filings with the SEC may also be obtained from us. Free copies of our filings may be obtained by directing a request to Tree.com, Inc., 11115 Rushmore Drive, Charlotte, North Carolina 28277, Attention: Secretary.
Forward-Looking Statements
This press release contains statements that are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on current expectations about future events. These statements are not guarantees of future events and involve risks, uncertainties and assumptions that are difficult to predict. Therefore, actual events may differ materially from what is expressed in such forward-looking statements due to numerous factors. These include uncertainties as to the timing of the closing of the sale transaction; uncertainties as to whether stockholders will approve the sale transaction; the possibility that competing offers for the assets will be made; the possibility that various closing conditions for the transaction may not be satisfied or waived; and the effects of disruption from the transaction making it more difficult to maintain relationships with employees, customers and other business partners. Further information and risks regarding factors that could affect our business, operations, financial results or financial positions are discussed from time to time in Tree.com’s SEC filings and reports, and will be discussed in the proxy statement that Tree.com will provide to stockholders in connection with a special meeting to approve the transaction. We want to caution you not to place undue reliance on any forward-looking statements. We undertake no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise.
MEDIA CONTACT:
Nicole Hall
(704) 943-8463
Nicole.hall@tree.com
Brigus Gold Corp. announced that exploration drilling on the southern portion of the Black Fox Complex continues to return high-grade assays over significant widths. The most recent results confirm a new gold zone, running north south and located approximately 150 metres to the east and running parallel to the Contact Zone. Expanded drilling of this zone is now a key focus for Brigus as the company continues to delineate this new discovery.
About Brigus Gold Corp. (BRD)
Brigus Gold Corp., a high quality emerging mid-tier gold producer, is dedicated to maximizing shareholder value through ongoing development and exploration with projects in Ontario, Saskatchewan, Mexico and the Dominican Republic. With total reserves of 2.3 million ounces of gold and projects ready for development, Brigus Gold is well positioned for growth.
The company combines strong production strategies with an excellent development pipeline in primarily low-risk operating jurisdictions. The company’s Black Fox mine near Timmins, Ontario is currently producing gold and is expected to increase production in the upcoming years – generating steady cash flow for further expansion.
Brigus Gold intends to channel its resources into advancing its second flagship mine project, the Goldfields Project, near Uranium City, Saskatchewan. The Goldfields Project is set to begin production in 2013 and has documented resources, existing infrastructure and permits already in place. In addition to the properties adjacent to its flagship mine sites, the company also plans to advance the Ixhuatan and Huizopa projects in Mexico in the future.
HAIKOU CITY, China, May 11, 2011 /PRNewswire-Asia-FirstCall/ — China Pharma Holdings, Inc. (NYSE AMEX: CPHI) (“China Pharma” or the “Company”), a fully-integrated specialty pharmaceuticals company in China, today announced financial results for the quarter ended March 31, 2011.
First Quarter 2011 Highlights
- Revenue increased 20% to $18.1 million from $15.1 million in the first quarter of 2010.
- Cashflow from operations rose 23% to $1.4 million from $1.1 million in first quarter of 2010.
- Gross profit grew 12% to $6.9 million from $6.1 million in the first quarter of 2010.
- Net income, excluding the impact of change in fair value of derivative liability, increased 3% to $4.4 million, compared $4.3 million in the first quarter of 2010.
“In the first quarter of 2011 we achieved solid sales growth primarily due to strong performances by our Digestive Diseases and Anti-Viro product categories. We continue to face moderate pricing pressure across several of our product categories during the quarter, but we expect gross margin and revenue to benefit from anticipated launches of Candesartan and Rosuvastatin in the seasonally strong second half of the year,” said Ms. Zhilin Li, China Pharma’s Chairman and CEO. “In addition to the expected launch of these two higher margin products later in 2011, we continue to advance our novel cephalosporin-based combination antibiotic through Phase II clinical trials. Commercializing exciting new drugs like this, along with first-to-market generic medicines, is an important part of our strategy to enhance China Pharma’s growth and profitability.”
First Quarter 2011 Results
Revenues for the quarter ended March 31, 2011 were $18.1 million, up 20% from revenues of $15.1 million for the quarter ended March 31, 2010, reflecting higher sales across all of the Company’s product categories led by growth in the Digestive Diseases and Anti-Viro Infection & Respiratory (“Anti-Viro”) categories.
The Digestive Diseases product group was the Company’s fastest growing revenue category in the first quarter of 2011, with sales increasing 53% to $2.6 million from $1.7 million in the first quarter of 2010. The strong performance of the Digestive Diseases product group primarily reflects continued robust sales of Omeprazole, the Company’s generic gastroesophageal reflux disease drug, and Tiopronin, a drug prescribed for treatment of acute Hepatitis B and drug-induced liver damage.
Revenue from the Anti-Viro product category grew 31% to $7.1 million in the quarter ending March 31, 2011, from $5.4 million in the first quarter of 2010. We saw year-over-year sales growth in nearly all products within the Anti-Viro category.
Revenue from the Other product category increased 15% to $3.1 million in the first quarter of 2011 from $2.7 million in the same period last year, driven by strong sales of Vitamin B6.
The CNS Cerebral & Cardio Vascular (“CNS”) product group generated revenue of $5.4 million in the first quarter of 2011, roughly flat compared to revenue of $5.3 million in the first quarter of 2010. The Company expects significantly improved future sales growth and profitability in this category upon launch of Candesartan and Rosuvastatin, both of which are CNS products.
Gross profit for the quarter ended March 31, 2011 was $6.9 million, up 12% from gross profit of $6.1 million in the same period of 2010. Gross margin decreased to 37.9% in the first quarter of 2011 from 40.6% in the first quarter of 2010, reflecting pricing pressure across product lines, with the exception of the Digestive Diseases category. The Company estimates that the new tax and surcharges that became applicable recently accounted for approximately 0.8% of the decline in overall margin.
Gross margin for the Digestive Diseases product group increased to 48.4% in the first quarter of 2011 from 47.5% in the same period last year. Anti-Viro gross margin declined slightly to 27.5% in the first quarter of 2011 from 28.6% in the same period last year. Gross margin for the Other product category fell more sharply to 44.9% in the first quarter of 2011 from 49.7% in the same period last year, primarily reflecting strong sales of Vitamin B6, which is on the Essential Drug List and generates lower margin than the category average. CNS product gross margin decreased slightly to 45.3% in the first quarter of 2011 from 45.8% in the same period last year.
Selling, general and administrative expenses in the first quarter of 2011 were $1.5 million, or 8.4% of sales, compared to $1.2 million, or 8.2% of sales, in the same period of 2010. For the quarter ended March 31, 2011, the Company’s bad debt expense was $9,428, compared to bad debt expense of $70,906 in the same period of 2010.
Operating income was $5.3 million in the first quarter of 2011, up 11% from $4.8 million in the first quarter of 2010.
For the quarter ended March 31, 2011, the Company paid income tax at a rate of approximately 14%. Income tax expense for the first quarter of 2011 was $0.9 million, compared to $0.5 million for the same period last year. The Company obtained “National High-Tech Enterprise” status from the PRC government in the fourth quarter of 2010. With this designation, the Company is entitled to a preferential tax rate of 15% for the next three years (2011 to 2013), which is notably lower than the statutory income tax rate of 25%.
Net income for the first quarter of 2011 was $5.1 million, or $0.12 per basic and diluted share, compared to $4.9 million, or $0.11 per basic and diluted share, in the first quarter of 2010. Excluding the effect of change in fair value of derivative warrant liability, adjusted non-GAAP net income in the first quarter of 2011 was $4.4 million, or $0.10 per diluted share, compared to $4.3 million, or $0.10 per diluted share, in the first quarter of 2010.
Financial Condition
As of March 31, 2011, the Company had cash and cash equivalents of $3.8 million compared to $3.7 million as of December 31, 2010.
Working capital increased to $84 million at March 31, 2011 from $79 million at December 31, 2010. The current ratio rose to 7.6 times at March 31, 2011 from 7.2 times at December 31, 2010.
Accounts receivable balance rose to $64 million at the end of the first quarter of 2011 from $62 million at the end 2010. The Company’s management team continues to be sharply focused on improving accounts receivable collection and expects to make further progress in the quarters to come.
For the quarter ended March 31, 2011, cash flow from operating activities was $1.4 million, as compared to $1.1 million in the first quarter of 2010.
“In 2011, we anticipate adding new higher-margin revenue streams to our upcoming new products, which should help offset pockets of margin pressure coming from higher raw material costs and more competitive pricing due to government reform policies. Overall we are very optimistic that we have the right mix of products and pipeline opportunities to position China Pharma to benefit from China’s unprecedented $124 billion healthcare reform program,” said Ms. Li. “We believe our success in 2011 and beyond will be defined by our high-quality manufacturing facilities and promising pipeline, strong distribution relationships, and commercialization expertise.”
Pipeline Update
As of March 31, 2011, China Pharma had nine pipeline drugs in different stages of active development. The development of three of such products is highlighted below:
- The Company completed clinical trials of Candesartan, a front-line drug therapy for the treatment of hypertension. The Company has completed all testing procedures and currently awaits final SFDA production approval.
- The Company completed clinical trials of Rosuvastatin, a generic form of Crestor, in December 2010 and has submitted an application for SFDA production approval.
- The Company completed Phase I clinical trials of its novel cephalosporin-based combination antibiotic in September 2010. Phase I of the clinical trials focused on the study of clinical pharmacology as well as the evaluation of safety on the human body, while observing tolerance and pharmacokinetics to provide support for dosage and drug delivery design. The Company has entered Phase II clinical trials for this drug.
Conference Call
The Company will hold a conference call at 8:30 a.m. ET on May 11, 2011 to discuss first quarter fiscal year 2011 results. Listeners may access the call by dialing 1-866-783-2145, or 1-857-350-1604 for international callers; access code: 43412948. A webcast will also be available through the Company’s website at http://www.chinapharmaholdings.com. A replay of the call will be accessible from 12:30 p.m. ET on May 11, 2011 through May 18, 2011 by dialing 1-888-286-8010, or 1-617-801-6888 for international callers; access code: 49458851.
Use of Non-GAAP Financial Measures
GAAP results for the quarter ended March 31, 2011 and March 31, 2010 include the impact of gains from changes in value of derivative warrant liability. To supplement its consolidated financial statements presented on a GAAP basis, the Company has provided non-GAAP adjusted financial information, including adjusted net income and adjusted diluted earnings per share, that excludes the impact of the changes in value of derivative warrant liability. 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 adjustment to GAAP results appears in the tables 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 China Pharma Holdings, Inc.
China Pharma Holdings, Inc. is a rapidly growing specialty pharmaceutical company that develops, manufactures and markets a diversified portfolio of products focused on conditions with a high incidence and high mortality rates in China, including cardiovascular, CNS, infectious, and digestive diseases. The Company’s cost-effective, high-margin business model is driven by market demand and supported by eight scalable GMP-certified product lines covering the major dosage forms. In addition, the Company has a broad and expanding nationwide distribution network across all major cities and provinces in China. The Company’s wholly-owned subsidiary, Hainan Helpson Medical & Biotechnology Co., Ltd., is located in Haikou City, Hainan Province. For more information about China Pharma Holdings, Inc., please visit http://www.chinapharmaholdings.com.
Safe Harbor Statement
Certain statements in this press release constitute forward-looking statements for purposes of the safe harbor provisions under The Private Securities Litigation Reform Act of 1995. Any statements set forth above that are not historical facts are forward-looking statements that involve risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements, which may include, but are not limited to, such factors as the achievability of financial guidance, success of new product development, unanticipated changes in product demand, increased competition, downturns in the Chinese economy, uncompetitive levels of research and development, and other information detailed from time to time in the Company’s filings and future filings with the United States Securities and Exchange Commission. The forward-looking statements made herein speak only as of the date of this press release and the Company undertakes no duty to update any forward-looking statement to conform the statement to actual results or changes in the Company’s expectations except as required by applicable law or regulation.
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Contact:
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China Pharma Holdings, Inc.
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CCG Investor Relations
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Phone: +86-898-6681-1730 (China)
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Kalle Ahl, CFA, Account Manager
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Email: hps@chinapharmaholdings.com
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Phone: +1-646-833-3417 (New York)
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Email: kalle.ahl@ccgir.com
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Vivian Chen, Sr. Market Intelligence Exec.
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Phone: +1-646-701-7445 (New York)
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Email: vivian.chen@ccgir.com
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– FINANCIAL TABLES FOLLOW –
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China Pharma Holdings, Inc.
|
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Reconciliation of Non-GAAP Adjusted Net Income and Diluted EPS
|
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(Unaudited, $ in thousand except share and per share data)
|
|
|
|
|
|
|
|
|
|
|
|
For the Three Months Ended March 31,
|
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|
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2011
|
|
2010
|
|
|
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Net income
|
EPS
|
|
Net income
|
EPS
|
|
|
Adjusted net income, excluding approximate after-tax
impact of derivative gain
|
|
$ 4,427
|
$ 0.10
|
|
$ 4,294
|
$ 0.10
|
|
|
|
|
|
|
|
|
|
|
Subtract: Derivate Gain (a)
|
|
677
|
0.02
|
|
559
|
0.01
|
|
|
Net income as reported (GAAP)
|
|
$ 5,104
|
$ 0.12
|
|
$ 4,853
|
$ 0.11
|
|
|
|
|
|
|
|
|
|
|
Diluted weighted average shares outstanding
|
|
43,415,163
|
|
43,602,261
|
|
|
|
|
|
|
|
|
|
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(a) Represents the approximate amount by which net income or EPS would have decreased without the derivative gain.
|
|
|
|
|
|
|
|
|
|
CHINA PHARMA HOLDINGS, INC.
|
|
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CONDENSED CONSOLIDATED BALANCE SHEETS
|
|
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(Unaudited)
|
|
|
|
|
|
March 31,
|
|
December 31,
|
|
|
|
2011
|
|
2010
|
|
|
ASSETS
|
|
|
|
|
|
|
Current Assets:
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
$ 3,803,645
|
|
$ 3,692,086
|
|
|
Banker’s acceptances
|
|
469,417
|
|
–
|
|
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Trade accounts receivable, less allowance for doubtful
|
|
|
|
|
|
|
accounts of $3,355,787 and $3,317,017, respectively
|
|
63,991,506
|
|
61,947,737
|
|
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Other receivables, less allowance for doubtful
|
|
|
|
|
|
|
accounts of $17,751 and $15,669, respectively
|
|
138,823
|
|
65,019
|
|
|
Advances to suppliers
|
|
4,564,790
|
|
5,311,896
|
|
|
Inventory
|
|
23,114,515
|
|
20,388,935
|
|
|
Deferred tax assets
|
|
535,082
|
|
528,684
|
|
|
Total Current Assets
|
|
96,617,778
|
|
91,934,357
|
|
|
Advances for purchases of property and equipment and
|
|
|
|
|
|
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intangible assets
|
|
4,677,179
|
|
4,395,331
|
|
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Property and equipment, net of accumulated depreciation of
|
|
|
|
|
|
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$2,929,502 and $2,695,840, respectively
|
|
6,230,232
|
|
6,372,487
|
|
|
Intangible assets, net of accumulated amortization of
|
|
|
|
|
|
|
$2,599,297 and $2,342,081, respectively
|
|
29,697,920
|
|
29,048,766
|
|
|
TOTAL ASSETS
|
|
$ 137,223,109
|
|
$ 131,750,941
|
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS’ EQUITY
|
|
|
|
|
|
|
Current Liabilities:
|
|
|
|
|
|
|
Trade accounts payable
|
|
$ 3,663,626
|
|
$ 4,937,781
|
|
|
Accrued expenses
|
|
58,178
|
|
98,206
|
|
|
Accrued taxes payable
|
|
2,593,645
|
|
2,386,019
|
|
|
Other payables
|
|
372,651
|
|
92,077
|
|
|
Advances from customers
|
|
1,796,868
|
|
1,208,988
|
|
|
Other payables – related parties
|
|
371,563
|
|
303,644
|
|
|
Short-term notes payable
|
|
3,816,736
|
|
3,781,119
|
|
|
Total Current Liabilities
|
|
12,673,267
|
|
12,807,834
|
|
|
Long-term deferred tax liability
|
|
72,348
|
|
71,673
|
|
|
Derivative warrant liability
|
|
256,762
|
|
934,260
|
|
|
Total Liabilities
|
|
13,002,377
|
|
13,813,767
|
|
|
Stockholders’ Equity:
|
|
|
|
|
|
|
Preferred stock, $0.001 par value; 5,000,000 shares authorized;
|
|
|
|
|
|
|
no shares issued or outstanding
|
|
–
|
|
–
|
|
|
Common stock, $0.001 par value; 95,000,000 shares authorized;
|
|
|
|
|
|
|
43,404,557 shares and 43,404,557 shares outstanding, respectively
|
|
43,405
|
|
43,405
|
|
|
Additional paid-in capital
|
|
23,294,374
|
|
23,252,476
|
|
|
Retained earnings
|
|
90,120,646
|
|
85,017,024
|
|
|
Accumulated other comprehensive income
|
|
10,762,307
|
|
9,624,269
|
|
|
Total Stockholders’ Equity
|
|
124,220,732
|
|
117,937,174
|
|
|
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY
|
|
$ 137,223,109
|
|
$ 131,750,941
|
|
|
|
|
|
|
|
CHINA PHARMA HOLDINGS, INC.
|
|
|
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
|
|
|
AND COMPREHENSIVE INCOME
|
|
|
(Unaudited)
|
|
|
|
For the Three Months
|
|
|
|
Ended March 31,
|
|
|
|
2011
|
|
2010
|
|
|
Revenue
|
|
$ 18,119,557
|
|
$ 15,102,510
|
|
|
Cost of revenue
|
|
11,249,946
|
|
8,968,302
|
|
|
|
|
|
|
|
|
Gross profit
|
|
6,869,611
|
|
6,134,208
|
|
|
|
|
|
|
|
|
Operating expenses:
|
|
|
|
|
|
|
Selling expenses
|
|
604,481
|
|
582,888
|
|
|
General and administrative expenses
|
|
916,945
|
|
652,748
|
|
|
Bad debt expense
|
|
9,428
|
|
70,906
|
|
|
Total operating expenses
|
|
1,530,854
|
|
1,306,542
|
|
|
|
|
|
|
|
|
Income from operations
|
|
5,338,757
|
|
4,827,666
|
|
|
|
|
|
|
|
|
Other income (expense):
|
|
|
|
|
|
|
Interest income
|
|
1,961
|
|
6,757
|
|
|
Interest expense
|
|
(61,214)
|
|
(50,490)
|
|
|
Derivative gain
|
|
677,498
|
|
558,504
|
|
|
Net other income
|
|
618,245
|
|
514,771
|
|
|
|
|
|
|
|
|
Income before income taxes
|
|
5,957,002
|
|
5,342,437
|
|
|
Income tax expense
|
|
(853,380)
|
|
(489,279)
|
|
|
Net income
|
|
5,103,622
|
|
4,853,158
|
|
|
Other comprehensive income – foreign currency
|
|
|
|
|
|
|
translation adjustment
|
|
1,138,038
|
|
14,445
|
|
|
Comprehensive income
|
|
$ 6,241,660
|
|
$ 4,867,603
|
|
|
Earnings per Share:
|
|
|
|
|
|
|
Basic
|
|
$ 0.12
|
|
$ 0.11
|
|
|
Diluted
|
|
$ 0.12
|
|
$ 0.11
|
|
|
|
|
|
|
|
CHINA PHARMA HOLDINGS, INC.
|
|
|
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
For the Three Months
|
|
|
|
Ended March 31,
|
|
|
|
2011
|
|
2010
|
|
|
Cash Flows from Operating Activities:
|
|
|
|
|
|
|
Net income
|
|
$ 5,103,622
|
|
$ 4,853,158
|
|
|
Depreciation and amortization
|
|
441,993
|
|
419,903
|
|
|
Stock based compensation
|
|
41,898
|
|
47,624
|
|
|
Derivative gain
|
|
(677,498)
|
|
(558,504)
|
|
|
Changes in assets and liabilities:
|
|
|
|
|
|
|
Trade accounts receivable
|
|
(1,455,529)
|
|
(1,224,072)
|
|
|
Other receivables
|
|
(72,955)
|
|
(6,209)
|
|
|
Advances to suppliers
|
|
794,570
|
|
(1,037,525)
|
|
|
Inventory
|
|
(2,525,349)
|
|
(1,604,046)
|
|
|
Deferred tax assets
|
|
(1,414)
|
|
(72,339)
|
|
|
Trade accounts payable
|
|
(1,261,422)
|
|
318,952
|
|
|
Accrued expenses
|
|
194,444
|
|
(36,265)
|
|
|
Accrued taxes payable
|
|
184,552
|
|
155,402
|
|
|
Other payables
|
|
44,932
|
|
2,043
|
|
|
Advances from customers
|
|
574,632
|
|
(134,791)
|
|
|
Net Cash Provided by Operating Activities
|
|
1,386,476
|
|
1,123,331
|
|
|
|
|
|
|
|
|
Cash Flows from Investing Activities:
|
|
|
|
|
|
|
Net investment in banker’s acceptances
|
|
(467,902)
|
|
–
|
|
|
Advances for purchases of property and equipment
|
|
|
|
|
|
|
and intangible assets
|
|
(239,670)
|
|
(1,291,216)
|
|
|
Purchase of property and equipment
|
|
(60,949)
|
|
(58,272)
|
|
|
Purchase of intangible assets
|
|
(608,708)
|
|
(1,207,541)
|
|
|
Net Cash Used in Investing Activities
|
|
(1,377,229)
|
|
(2,557,029)
|
|
|
|
|
|
|
|
|
Cash Flows from Financing Activity:
|
|
|
|
|
|
|
Proceeds from related party loan
|
|
67,919
|
|
–
|
|
|
Proceeds from exercise of warrants
|
|
–
|
|
2,583,000
|
|
|
Net Cash Provided by Financing Activity
|
|
67,919
|
|
2,583,000
|
|
|
|
|
|
|
|
|
Effect of Exchange Rate Changes on Cash
|
|
34,393
|
|
527
|
|
|
Net Increase in Cash and Cash Equivalents
|
|
111,559
|
|
1,149,829
|
|
|
Cash and Cash Equivalents at Beginning of Period
|
|
3,692,086
|
|
3,634,753
|
|
|
Cash and Cash Equivalents at End of Period
|
|
$ 3,803,645
|
|
$ 4,784,582
|
|
|
|
|
|
|
|
|
Supplemental Cash Flow Information:
|
|
|
|
|
|
|
Cash paid for interest
|
|
$ 58,170
|
|
$ 50,490
|
|
|
Cash paid for income taxes
|
|
385,546
|
|
376,727
|
|
|
|
|
|
|
NANJING, China, May 11, 2011 /PRNewswire-Asia-FirstCall/ — Ever-Glory International Group, Inc. (the “Company” or “Ever-Glory”) (NYSE Amex: EVK), a leading apparel supply chain manager and retailer based in China, today reported its financial results for the first quarter ended March 31, 2011.
During the first quarter of 2011, net sales increased 103.6% to $53.2 million compared to $26.1 million in the first quarter of 2010. The increase was primarily attributable to increased sales in Ever-Glory’s retail business as well as its wholesale business in China.
Retail sales from LA GO GO, the Company’s branded retail division, increased 86.5% to $12.6 million, compared to $6.8 million in the first quarter of 2010. This increase was primarily due to the increase in same store sales and new stores opened. Ever-Glory had 305 LA GO GO stores as of March 31, 2011, compared to 195 LA GO GO stores at March 31, 2010. LA GO GO stores are located in more than 20 provinces in China.
Sales generated from the Company’s wholesale business increased 109.5% to $40.6 million, compared to $19.4 million in the first quarter of 2010. The increase was mainly attributable to the increased sales in China. In response to the global economic uncertainty and political instability, in mid 2010 Ever-Glory shifted its wholesale marketing effort to develop its wholesale business in the Chinese market. Management believes that Ever-Glory’s expertise in supply chain management and years of experience in the wholesale business enabled the Company to quickly obtain significant orders in the Chinese wholesale market.
In the first quarter of 2011, gross profit was $9.1 million, an increase of 67.8% compared to the same period in 2010. Gross margin decreased 3.7% to 17.1% in the first quarter of 2011, compared to 20.8% in the first quarter of 2010. The decrease was mainly due to increased raw materials prices and outsourced manufacturing costs.
“In the first quarter of 2011, sales increased significantly in both our wholesale and retail segments.” commented Mr. Edward Yihua Kang, Chairman of the Board and Chief Executive Officer of Ever-Glory. “We are especially encouraged by our strong performance. The total number of LA GO GO stores in China increased from 293 at the end of 2010 to 305 stores as of March 31, 2011, we expect to open additional 80-100 new stores in 2011 based on the 293 stores we had at the end of 2010.
“In 2011, we plan to continue to develop LA GO GO through perfecting design styles, improving store management efficiency and opening more stores in desired locations,” continued Mr. Kang. “We are confident that, through these measures, we can enhance same-store sales, expand LA GO GO’s market penetration and increase its brand influence in China.”
Selling expenses increased 112.5% to $3.6 million in the first quarter of 2011 from $1.7 million in the first quarter of 2010. The increase was attributable to the enlarged number of retail employees and increased average salaries, as well as increased store decoration and marketing expenses associated with the promotion of the LA GO GO brand.
General and administrative expenses increased 15.7% to $2.2 million in the first quarter of 2011 from $1.9 million in the first quarter of 2010. As a percentage of total sales, general and administrative expenses decreased to 4.2% of total sales for the three months ended March 31, 2011, compared to 7.3% of total sales for the three months ended March 31, 2010. The total general and administrative expenses increase was attributable to an increase in payroll for additional management and design and marketing staff as a result of our business expansion. The decrease in general and administrative expenses as a percentage of total sales was due to the increase in our sales.
Income from operations for the first quarter of 2011 increased 81.1% to $3.3 million, compared to $1.8 million in the first quarter of 2010.
For the first quarter of 2011, GAAP net income attributable to the Company was $2.6 million, or $0.18 per diluted share, an increase of 65.8% from $1.6 million, or $0.11 per diluted share in the first quarter of 2010. GAAP net income attributable to the Company results for in the first quarter of 2011 include approximately $0.2 million, or $0.01 per diluted share, of non-cash income related to the change in fair value of a derivative liability compared to approximately $0.1 million, or $0.01 per diluted share, of non-cash income related to the change in fair value of a derivative liability in the first quarter of 2010. Excluding these non-cash items for the first quarter 2011 and 2010, non-GAAP diluted earnings per share were $0.17 in the first quarter of 2011 compared to $0.10 in the first quarter of 2010. (see “About Non-GAAP Financial Measures” below).
Balance Sheet and Cash Flow
As of March 31, 2011, the Company had approximately $9.7 million of cash and cash equivalents, compared to approximately $3.7 million as of March 31, 2010. Ever-Glory had working capital of approximately $27.4 million as of March 31, 2011, and outstanding bank loans of approximately $19.5 million as of March 31, 2011.
Business Outlook
For the second quarter of 2011, the Company anticipates total net sales of $32 to $42 million and net income of $1.3 to $1.8 million. For full year 2011, Ever-Glory anticipates total net sales between $180 and $215 million and net income between $7.3 and $9.0 million. The full year revenue forecast is comprised of $120 to $150 million in expected wholesale revenue and $60 to $65 million in expected revenue from retail operations.
About Non-GAAP Financial Measures
This press release and presentations of management related to the subject matter of this press release contains financial measures for earnings that are not prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) in that they exclude the items arising from the change in fair value of a derivative liability. Ever-Glory believes that these non-GAAP financial measures are useful to investors because they reflect the essential operating activities of Ever-Glory. Readers are cautioned, however, that non-GAAP measures are subject to inherent limitations because they involve the exercise of judgment about which items are excluded in the determination of the non-GAAP financial measure.
The following table provides the non-GAAP financial measure and the related GAAP measure and provides a reconciliation of the non-GAAP measure to the equivalent GAAP measure for the three months ended March 31, 2011 and 2010:
|
Adjusted Net Income
|
|
|
|
|
|
Three Months Ended March 31,
|
|
|
2011
|
2010
|
|
|
GAAP Net Income attributable to the Company
|
$2,611,996
|
$1,575,675
|
|
|
GAAP Diluted EPS
|
$0.18
|
$0.11
|
|
|
|
|
|
|
Addition:
|
|
|
|
|
Non-Cash Income for
|
|
|
|
|
Convertible Notes:
|
$195,800
|
$84,519
|
|
|
Diluted EPS:
|
($0.01)
|
($0.01)
|
|
|
|
|
|
|
Non GAAP Net Income:
|
$2,416,196
|
$1,491,156
|
|
|
Non GAAP Diluted EPS:
|
$0.17
|
$0.10
|
|
|
Diluted Shares used in computation
|
14,753,871
|
14,835,197
|
|
|
|
|
Conference Call
The Company will hold a conference call today at 8:30 a.m. Eastern Time which will be hosted by Edward Yihua Kang, Chairman of the Board, President, and CEO, and Jason Jiansong Wang, Chief Financial Officer. Listeners can access the conference call by dialing # 1-719-325-2100 and referring to the confirmation code 9102398. The conference call will also be broadcast live over the Internet and can be accessed at the Company’s web site at the following URL: http://www.everglorygroup.com.
A replay of the call will be available from 11:30 am May 11, 2011 through May 18, 2011 Eastern Time by calling # 1-858-384-5517; pin number: 9102398.
About Ever-Glory International Group, Inc.
Based in Nanjing, China, Ever-Glory International Group, Inc. is a leading apparel supply chain manager and retailer in China. Ever-Glory is the first Chinese apparel Company listed on the American Stock Exchange (now called NYSE Amex), and has a focus on middle-to-high grade casual wear, outerwear, and sportswear brands. Ever-Glory maintains global strategic partnerships in Europe, the United States, Japan and China, conducting business with several well-known brands and retail chain stores. In addition, Ever-Glory operates its own domestic chain of retail stores known as “LA GO GO.”
Cautionary Note Regarding Forward-Looking Statements
Certain statements in this release and other written or oral statements made by or on behalf of Ever-Glory International Group, Inc. (the “Company”) are “forward looking statements” within the meaning of the federal securities laws. Statements regarding future events and developments and the Company’s future performance, as well as management’s expectations, beliefs, plans, estimates or projections relating to the future, are forward-looking statements within the meaning of these laws. The forward looking statements are subject to a number of risks and uncertainties including, without limitation, market acceptance of the Company’s products and offerings, development and expansion of the Company’s wholesale and retail operations, the Company’s continued access to capital, currency exchange rate fluctuation and other risks and uncertainties. The actual results the Company achieves (including, without limitation, the revenue, net income and new retail store projections set forth herein) may differ materially from those contemplated by any forward-looking statements due to such risks and uncertainties (many of which are beyond the Company’s control). These statements are based on management’s current expectations and speak only as of the date of such statements. Readers should carefully review the risks and uncertainties described in the Company’s latest Annual Report on Form 10-K and other documents that the Company files from time to time with the U.S. Securities and Exchange Commission. The Company undertakes no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable law.
|
Contact Information
|
|
|
|
|
Company Contact
|
|
|
Yanhua Huang
|
|
|
Tel: +86-25-5209-6875
|
|
|
|
EVER-GLORY INTERNATIONAL GROUP, INC. AND SUBSIDIARIES
|
|
|
CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME
|
|
|
FOR THE THREE MONTHS ENDED MARCH 31, 2011 AND 2010 (UNAUDITED)
|
|
|
|
|
|
|
|
|
|
2011
|
|
2010
|
|
|
|
|
|
|
|
|
|
NET SALES
|
$
|
53,208,237
|
$
|
26,139,546
|
|
|
|
|
|
|
|
|
|
COST OF SALES
|
|
44,096,225
|
|
20,710,524
|
|
|
|
|
|
|
|
|
|
GROSS PROFIT
|
|
9,112,012
|
|
5,429,022
|
|
|
|
|
|
|
|
|
|
OPERATING EXPENSES
|
|
|
|
|
|
|
Selling expenses
|
|
3,589,105
|
|
1,689,173
|
|
|
General and administrative expenses
|
|
2,211,842
|
|
1,911,418
|
|
|
Total Operating Expenses
|
|
5,800,947
|
|
3,600,591
|
|
|
|
|
|
|
|
|
|
INCOME FROM OPERATIONS
|
|
3,311,065
|
|
1,828,431
|
|
|
|
|
|
|
|
|
|
OTHER (EXPENSES) INCOME
|
|
|
|
|
|
|
Interest income
|
|
22,473
|
|
68,108
|
|
|
Interest expense
|
|
(262,251)
|
|
(119,039)
|
|
|
Change in fair value of derivative liability
|
|
195,800
|
|
84,519
|
|
|
Other income
|
|
23,930
|
|
3,209
|
|
|
Total Other (Expenses) Income
|
|
(20,048)
|
|
36,797
|
|
|
|
|
|
|
|
|
|
INCOME BEFORE INCOME TAX EXPENSE
|
|
3,291,017
|
|
1,865,228
|
|
|
|
|
|
|
|
|
|
INCOME TAX EXPENSE
|
|
(679,021)
|
|
(230,852)
|
|
|
|
|
|
|
|
|
|
NET INCOME
|
|
2,611,996
|
|
1,634,376
|
|
|
|
|
|
|
|
|
|
NET INCOME ATTRIBUTABLE TO THE NONCONTROLLING INTEREST
|
|
|
|
(58,701)
|
|
|
|
|
|
|
|
|
|
NET INCOME ATTRIBUTABLE TO THE COMPANY
|
$
|
2,611,996
|
$
|
1,575,675
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET INCOME
|
$
|
2,611,996
|
$
|
1,634,376
|
|
|
|
|
|
|
|
|
|
Foreign currency translation gain
|
|
236,835
|
|
34,133
|
|
|
|
|
|
|
|
|
|
COMPREHENSIVE INCOME
|
|
2,848,831
|
|
1,668,509
|
|
|
|
|
|
|
|
|
|
COMPREHENSIVE INCOME ATTRIBUTABLE TO
|
|
|
|
|
|
THE NONCONTROLLING INTEREST
|
|
–
|
|
58,721
|
|
|
|
|
|
|
|
|
|
COMPREHENSIVE INCOME ATTRIBUTABLE TO
|
|
|
|
|
|
THE COMPANY
|
$
|
2,848,831
|
$
|
1,609,788
|
|
|
|
|
|
|
|
|
|
NET INCOME PER SHARE
|
|
|
|
|
|
|
Attributable to the Company’s common stockholders
|
|
|
|
|
Basic
|
$
|
0.18
|
$
|
0.11
|
|
|
Diluted
|
$
|
0.18
|
$
|
0.11
|
|
|
Weighted average number of shares outstanding
|
|
|
|
|
|
|
Basic
|
|
14,753,871
|
|
14,720,425
|
|
|
Diluted
|
|
14,753,871
|
|
14,835,197
|
|
|
|
|
|
|
|
WARRINGTON, Pa., May 11, 2011 (GLOBE NEWSWIRE) — Discovery Laboratories, Inc. (Nasdaq:DSCO) today reports financial results for the first quarter ended March 31, 2011 and provides an update on key pipeline programs. The Company will host a conference call this morning at 10:00 AM EDT. The call-in number is 866-332-5218.
Selected financial information, discussed in greater detail below includes:
- For the quarter ended March 31, 2011, the Company reported a net loss of $3.8 million. Excluding accounting for non-cash items related to depreciation, stock-based compensation and the change in fair value of certain outstanding warrants accounted for as derivative liabilities, the first quarter 2011 loss was $5.4 million.
- For the first quarter of 2011, net cash outflows, before financing activities, was $5.1 million. Financing activities included a public offering of the Company’s securities in February 2011, which resulted in net proceeds of $21.6 million, and a financing in January 2011 under the Company’s June 2010 Committed Equity Financing Facility (2010 CEFF), which resulted in net proceeds of $1 million.
- As of March 31, 2011 the Company had cash and cash equivalents of $27.7 million. The Company also has two Committed Equity Financing Facilities (CEFFs) that, subject to certain conditions, may allow the Company in the future to raise additional capital to support its business plans.
W. Thomas Amick, Chairman of the Board and Chief Executive Officer of Discovery Labs commented, “In the first quarter, we concluded a number of key corporate initiatives that we believe fundamentally strengthen our Company and provides sufficient capital to take us through the potential FDA approval of Surfaxin, our first priority, which we believe could occur in the first quarter of 2012. Additionally, we are prudently advancing and are very encouraged by our aerosolization technology, which we believe has the potential to address the substantial unmet medical need for an aerosolized surfactant for several respiratory disorders. We are also pleased to have recently presented a series of related, new data to the pediatric critical care community at the prestigious PAS Annual Meeting.”
Selected Pipeline Development Updates include:
- Surfaxin® (lucinactant) for the prevention of respiratory distress syndrome (RDS) in premature infants: The Company is conducting a comprehensive preclinical program to validate its optimized biological activity test (BAT), a key remaining issue that must be addressed to potentially gain U.S. Food and Drug Administration (FDA) marketing approval for Surfaxin in the United States. The Company has had several interactions with the FDA intended to ensure that the comprehensive preclinical program would ultimately satisfy the FDA. In January 2011, the Company announced that the FDA had provided guidance to increase the sample size of a specific data set by testing additional Surfaxin batches. To comply with the FDA’s suggestion, the Company has successfully manufactured eight Surfaxin batches and presently plans to manufacture two additional Surfaxin batches for use in the comprehensive preclinical program. The Company presently plans to complete all related analytical testing and concordance studies, and be in a position to file a Surfaxin Complete Response in the third quarter of 2011.
- Surfaxin LSTM (lyophilized lucinactant) for neonatal RDS: The Company continues to advance this program. Our plans for 2011 include establishing a commercial-scale manufacturing capability at a cGMP-compliant contract manufacturer with expertise in lyophilized formulations and seeking regulatory guidance from the FDA and the European Medicines Agency (EMA) for the planned clinical development program.
- Aerosolization Technology: Recently, at the 2011 Pediatric Academic Societies Annual Meeting (PAS), new data was presented including: (i) a collaborative study indicating that aerosolized KL4 surfactant significantly improved lung function and survival when treating Acute Lung Injury in a well established preclinical model of this severe respiratory condition, (ii) a dose-ranging assessment of aerosolized KL4 surfactant in a widely recognized preclinical model of RDS, demonstrating significant improvement in lung function, lung structural integrity and pulmonary inflammatory mediator profile following treatment with aerosolized KL4 surfactant versus controls, and (iii) a study highlighting the Company’s novel patient interface technology intended to increase the efficiency of pulmonary aerosol drug delivery to patients requiring positive pressure ventilatory support.
Regarding our lead aerosolized KL4 surfactant program, Aerosurf® (aerosolized lucinactant for neonatal RDS), data from the preclinical dose ranging assessment study presented at PAS mentioned above suggests that, out of several doses tested, KL4 surfactant delivered via the Company’s proprietary capillary aerosol generator during a 20 to 30 minute dosing interval results in the most favorable physiologic outcomes. This study provides guidance for future clinical dosing strategies for this program. The Company’s plans for 2011 include finalizing the clinical and potential commercial design of the capillary aerosol generator, finalizing the clinical and potential commercial design for the novel patient interface, and seeking regulatory guidance in the U.S. and Europe for the planned development program.
Summary Financial Position and Results for the Quarter ended March 31, 2011
For the quarter ended March 31, 2011, the Company reported a net loss of $3.8 million (or $0.21 per share) on 18.1 million weighted-average common shares outstanding, compared to a net loss of $6.1 million (or $0.66 per share) on 9.2 million weighted-average common shares outstanding for the same period in 2010. Included in the net loss is non-cash income of $2.2 million and $1.2 million for the three months ended March 31, 2011 and 2010, respectively, representing the change in fair value of certain common stock warrants classified as derivative liabilities.
For the quarter ended March 31, 2011, the Company reported an operating loss of $6.1 million, compared to $7.1 million for the same period last year. Excluding non-cash items related to depreciation and stock-based compensation, the first quarter 2011 operating loss was $5.4 million, compared to $6.3 million for the same period last year. Included in the first quarter of 2011 is $0.4 million of revenue recognized under our grant from the National Institutes of Health (NIH) to support the development of the Company’s program for aerosolized KL4 surfactant for RDS.
As of March 31, 2011 the Company had cash and cash equivalents of $27.7 million compared to $10.2 million as of December 31, 2010. Net cash outflows from ongoing operating activities, before financings, for the first quarter of 2011 was $5.1 million. Financing activities in the first quarter of 2011 included: (i) in January 2011, the Company received net proceeds of approximately $1.0 million from the issuance of 314,179 shares of common stock pursuant to a financing under the 2010 CEFF; and (ii) in February 2011, the Company completed a public offering that resulted in net proceeds of $21.6 million from the issuance of 10 million shares of common stock and warrants to purchase 10 million shares. The shares and warrants were priced at $2.35 per unit, with each unit consisting of one share of common stock, one 15-month warrant to purchase 0.5 share of common stock and one five-year warrant to purchase 0.5 share of common stock. The 15-month warrants have an exercise price of $2.94 per share, the five-year warrants have an exercise price of $3.20 per share, subject to certain anti-dilution provisions. If the market price of the Company’s common stock were to exceed $2.94 at any time prior to May 2012, the Company may potentially realize up to an additional $14.7 million in proceeds from the potential exercise of the 15-month warrants.
Additionally, the Company currently has two Committed Equity Financing Facilities (CEFFs) that, subject to certain conditions, including price and volume limitations, may allow the Company in the future to raise additional capital to support its business plans. Under the 2010 CEFF (which expires in June 2013), there are 1.3 million shares available for potential future issuance. Under the May 2008 CEFF (which expires in June 2011), there are 0.9 million shares available for potential future issuance.
As of March 31, 2011, the Company reported common stock warrant liability of $8.3 million, as compared to $2.5 million as of December 31, 2010. The increase in common stock warrant liability is due primarily to the issuance in February 2011 of the five-year warrants discussed above. These warrants may be exercised for cash only, except in certain limited circumstances, and expressly state that there is no circumstance in which the Company shall be required to settle the warrants in cash. These warrants contain anti-dilution provisions that reset the exercise price upon the future issuance of lower-priced securities (with certain exceptions). Due to the nature of the anti-dilution provisions, to comply with applicable accounting guidelines (Accounting Standards Codification Topic 815), these warrants were classified as derivative liabilities and reported as of March 31, 2011 at an estimated fair value of $7.3 million using a trinomial valuation model.
The Company had 24.1 million and 13.8 million common shares outstanding as of March 31, 2011 and December 31, 2010, respectively.
Readers are referred to, and encouraged to read in their entirety, the Forms 8-K regarding the matters referred to herein, including any exhibits attached thereto, and the Company’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2011 to be filed with the Securities and Exchange Commission, which includes further detail on above-referenced transactions and the Company’s business plans and operations, financial condition and results of operations.
Surfaxin, Surfaxin LS, Aerosurf and the Company’s other aerosolized KL4 surfactant drug product candidates are investigational medications and are not approved by the FDA or any other world health regulatory authority for use in humans. The capillary aerosol generator and the proprietary patient interface are investigational devices and are not approved by the FDA or any other world health regulatory authority for use in humans.
Conference Call Details
Discovery Labs will hold a conference call on Wednesday May 11, 2011 at 10:00 AM EDT to further discuss the foregoing. The call in number is 866-332-5218. The international call in number is 706-679-3237. This audio webcast will be available through a live broadcast on the Internet at http://us.meeting-stream.com/discoverylaboratories_051111 and www.discoverylabs.com. The replay number to hear the conference call is 800-642-1687 or 706-645-9291. The passcode is 63905586.
About Discovery Labs
Discovery Laboratories, Inc. is a specialty biotechnology company developing surfactant therapies for respiratory diseases. Surfactants are produced naturally in the lungs and are essential for breathing. Discovery Labs’ novel proprietary KL4 surfactant technology produces a synthetic, peptide-containing surfactant that is structurally similar to pulmonary surfactant and is being developed in liquid, aerosol or lyophilized formulations. Discovery Labs is also developing its proprietary capillary aerosolization technology and novel patient interfaces, to enable efficient, targeted upper respiratory or alveolar delivery of aerosolized KL4 surfactant. Discovery Labs believes that its proprietary technology makes it possible, for the first time, to develop a significant pipeline of surfactant products to address a variety of respiratory diseases for which there frequently are few or no approved therapies. For more information, please visit our website at www.Discoverylabs.com.
Forward-Looking Statements
To the extent that statements in this press release are not strictly historical, all such statements are forward-looking, and are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from the statements made. Examples of such risks and uncertainties are: risks relating to the rigorous regulatory requirements required for approval of any drug or drug-device combination products that Discovery Labs may develop, including that: (a) Discovery Labs and the U.S. Food and Drug Administration (FDA) or other regulatory authorities will not be able to agree on the matters raised during regulatory reviews, or Discovery Labs may be required to conduct significant additional activities to potentially gain approval of its product candidates, if ever, (b) the FDA or other regulatory authorities may not accept or may withhold or delay consideration of any of Discovery Labs’ applications, or may not approve or may limit approval of Discovery Labs’ products to particular indications or impose unanticipated label limitations, and (c) changes in the national or international political and regulatory environment may make it more difficult to gain FDA or other regulatory approval; risks relating to Discovery Labs’ research and development activities, including (i) time-consuming and expensive pre-clinical studies, clinical trials and other efforts, which may be subject to potentially significant delays or regulatory holds, or fail, and (ii) the need for sophisticated and extensive analytical methodologies, including an acceptable biological activity test as well as other quality control release and stability tests to satisfy the requirements of the regulatory authorities; risks relating to Discovery Labs’ ability to develop and manufacture drug products, and capillary aerosol generators and patient interface systems for clinical studies, and, if approved, for commercialization of drug and combination drug-device products, including risks of technology transfers to contract manufacturers and problems or delays encountered by Discovery Labs, its contract manufacturers or suppliers in manufacturing drug products, drug substances and other materials and capillary aerosol generators and patient interface systems on a timely basis or in an amount sufficient to support Discovery Labs’ development efforts and, if approved, commercialization; the risk that Discovery Labs may be unable to identify potential strategic partners or collaborators to develop and commercialize its products, if approved, in a timely manner, if at all; the risk that Discovery Labs will not be able in a changing financial market to raise additional capital or enter into strategic alliances or collaboration agreements, or that the ongoing credit crisis will adversely affect the ability of Discovery Labs to fund its activities, or that additional financings could result in substantial equity dilution; the risk that Discovery Labs will not be able to access credit from its committed equity financing facilities (CEFFs), or that the minimum share price at which Discovery Labs may access the CEFFs from time to time will prevent Discovery Labs from accessing the full dollar amount potentially available under the CEFFs; the risk that Discovery Labs or its strategic partners or collaborators will not be able to retain, or attract, qualified personnel; the risk that Discovery Labs will be unable to maintain compliance with The Nasdaq Capital Market listing requirements, which could cause the price of Discovery Labs’ common stock to decline; the risk that recurring losses, negative cash flows and the inability to raise additional capital could threaten Discovery Labs’ ability to continue as a going concern; the risks that Discovery Labs may be unable to maintain and protect the patents and licenses related to its products, or other companies may develop competing therapies and/or technologies, or health care reform may adversely affect Discovery Labs; risks of legal proceedings, including securities actions and product liability claims; risks relating to health care reform; and other risks and uncertainties described in Discovery Labs’ filings with the Securities and Exchange Commission including the most recent reports on Forms 10-K, 10-Q and 8-K, and any amendments thereto.
| |
Condensed Consolidated Statement of Operations
(in thousands, except per share data) |
|
|
|
|
|
Three Months Ended
March 31, |
|
|
(unaudited) |
|
|
2011 |
2010 |
|
|
|
|
|
| Revenue from collaborative arrangement and grants |
$ 381 |
$ — |
|
|
|
|
|
| Operating expenses: (1) |
|
|
|
| Research and development |
4,620 |
4,133 |
|
| General and administrative |
1,820 |
2,932 |
|
| Total expenses |
6,440 |
7,065 |
|
|
|
|
|
| Operating loss |
(6,059) |
(7,065) |
|
| Change in fair value of common stock warrant liability (1) |
2,228 |
1,230 |
|
| Other expense, net |
(6) |
(223) |
|
|
|
|
|
| Net loss |
$ (3,837) |
$ (6,058) |
|
|
|
|
|
| Net loss per common share |
$ (0.21) |
$ (0.66) |
|
|
|
|
|
| Weighted avg. common shares outstanding |
18,114 |
9,180 |
|
|
|
|
|
| (1) Material non-cash items include the change in fair value of certain outstanding warrants accounted for as derivative liabilities, and in operating expenses, depreciation and stock-based compensation. For the three months ended March 31, 2011 and 2010, charges for depreciation and stock-based compensation were $0.6 million ($0.4 million in R&D and $0.2 million in G&A) and $0.8 million ($0.5 million in R&D and $0.3 million in G&A), respectively. |
|
|
|
|
|
| Condensed Consolidated Balance Sheets
(in thousands) |
|
|
March 31, |
December 31, |
|
2011 |
2010 |
| ASSETS |
|
|
| Current Assets: |
|
|
| Cash and cash equivalents |
$ 27,663 |
$ 10,211 |
| Prepaid expenses and other current assets |
289 |
285 |
| Total Current Assets |
27,952 |
10,496 |
| Property and equipment, net |
3,159 |
3,467 |
| Other assets |
569 |
574 |
|
|
|
| Total Assets |
$ 31,680 |
$ 14,537 |
|
|
|
| LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
| Current Liabilities: |
|
|
| Accounts payable |
$ 1,873 |
$ 1,685 |
| Accrued expenses |
3,500 |
3,286 |
| Common stock warrant liability |
8,328 |
2,469 |
| Equipment loan and capitalized leases, current portion |
122 |
136 |
| Total Current Liabilities |
13,823 |
7,576 |
| Long-Term Liabilities: |
|
|
| Equipment loan and capitalized leases, non-current portion & other liabilities |
991 |
935 |
| Total Liabilities |
14,814 |
8,511 |
| Stockholders’ Equity |
16,866 |
6,026 |
| Total Liabilities and Stockholders’ Equity |
$ 31,680 |
$ 14,537 |
TEL AVIV, Israel, May 11, 2011 (GLOBE NEWSWIRE) — Top Image Systems™, Ltd. (TIS™) (Nasdaq:TISA) (TASE:TISA) the leading ECM (Enterprise Content Management) solutions provider, today announced its financial results for the first quarter ended March 31, 2011.
First Quarter Highlights
- Revenues of $7.2 million, compared to $5.3 million, a 36% increase;
- Net income of $0.74 million, or $0.07 per diluted share, compared to a loss of $1.1 million, or ($0.12) per diluted share, an increase of 167%. On a non-GAAP basis, net income of $1.09 million, up from $0.26 million;
- Operating income of $1.01 million, an increase of $0.66 million compared to last year; Non-GAAP operating income of $1.03 million, compared to $0.45 million in the first quarter of 2010;
- Ninth consecutive quarter of operational profit;
- Adjusted EBITDA of $1.16 million; increased from 7% to 16% of revenues;
- Positive cash flow from operations of $2.4 million, compared to $0.2 million for the same quarter in 2010;
Commenting on the first quarter results, Dr. Ido Schechter, CEO of TIS said, “This quarter we saw significant progress in our new growth areas – our Business Banking Unit and Global Partner Program. As previously announced, in April, we exhibited at the 12th Annual Asian Banker Summit in Hong Kong where we saw great receptivity to our technology. In addition, we are expanding our partner network and look forward to announcing new customer wins in the months ahead.”
He continued, “While executing on our growth strategy we presented our 9th consecutive quarter of operation profit. In addition, during the first quarter we recognized a net profit on a GAAP basis and achieved significant positive cash flow from operations of $2.4 million. We are committed to staying focused on our plan and to continuing to deliver superior financial results. Given our success in the first quarter, we are increasing our guidance to 20% to 25% for organic revenues and profitability from our initial 2011 guidance range of 17% to 23%.”
First Quarter 2011 Results
Revenues for the first quarter of 2011 were $7.2 million, compared to $5.3 million for the first quarter of 2010. Product revenues were $4.2 million as compared to $2.4 million in the same period of 2010. Service revenues were $3.0 million as compared to $2.9 million for the first quarter of 2010. Adjusted EBITDA for the first quarter of 2011 was $1.16 million, compared to $0.36 million in the first quarter of 2010. As a percentage of revenues, Adjusted EBITDA margin increased to 16% from 7% for the same period in 2010.
Non-GAAP net income for the first quarter of 2011 totaled $1.09 million, or $0.10 per diluted share, compared to non-GAAP net income of $0.26 million for the first quarter of 2010, or $0.03 per diluted share. Non-GAAP operating income was $1.03 million for the first quarter of 2011, compared to $0.45 million in the prior year period.
TIS had a net income on a GAAP basis of $0.74 million, or a gain of $0.07 per diluted share, for the first quarter of 2011 compared to a GAAP net loss of $1.1 million, or a loss of $0.12 per diluted share, for the first quarter of 2010. GAAP operating income was $1.01 million for the first quarter of 2011, compared to $0.36 million for the same period in 2010.
Non-GAAP financial measures
Non-GAAP measures are reconciled to comparable GAAP measures in the table entitled “Reconciliation of GAAP to Non-GAAP Results”. The release includes non-GAAP financial measures, including, Adjusted EBITDA (which excludes interest expenses, taxes on income, depreciation and amortization expenses, non cash stock-based compensation expenses and changes in fair value of convertible debentures), Adjusted EBITDA Margin (determined by dividing Adjusted EBITDA by revenues), and Non-GAAP Net Income (which excludes depreciation and amortization expenses, non cash stock-based compensation expenses and changes in fair value of convertible debentures).
The presentation of these non-GAAP financial measures should be considered in addition to TIS’s GAAP results provided in the attached financial statements for the three mounts ended March 31, 2011 which include a reconciliation of each non-GAAP financial measure to its most directly comparable GAAP financial measure, and is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with GAAP. TIS’s management believes that these non-GAAP financial measures provide meaningful supplemental information regarding its performance by excluding certain charges, gains that may not be indicative of TIS’s core business operating results. TIS believes that both management and investors benefit from referring to these non-GAAP financial measures in assessing TIS’s performance. These non-GAAP financial measures also facilitate comparisons to TIS’s historical performance and its competitors’ operating results. TIS’s includes these non-GAAP financial measures because management believes they are useful to investors in allowing for greater transparency with respect to supplemental information used by management in its financial and operational decision-making.
Conference Call
The Company will be holding a conference call today, May 11, 2011, at 10:00am ET (7:00am Pacific Time, 5:00pm Israel Time) to review the first quarter of 2011 results.
Dr. Ido Schechter, CEO of TIS, will be on-line to discuss these results and take part in a question and answer session.
To participate, please call one of the following teleconferencing numbers at least 5 minutes before the conference call commences.
US Dial-in Number: 1-888-668-9141
ISRAEL Dial-in Number: 03 9180609
INTERNATIONAL Dial-in Number: +972 3 9180609
At:
10:00am Eastern Time
7:00am Pacific Time
5:00pm Israel Time
For those unable to listen to the live call, a replay of the call will be available from the day after the call in the investor relations section of Top Image Systems’ website at: www.topimagesystems.com
About Top Image Systems
Top Image Systems™ (TIS™) is a leading innovator of enterprise solutions for managing and validating content entering organizations from various sources. Whether originating from mobile, electronic, paper or other sources, TIS solutions deliver the content to applications that drive the organization. TIS’s eFLOW Platform is a common platform for the company’s solutions. TIS markets its platform in more than 40 countries through a multi-tier network of distributors, system integrators, value-added resellers as well as strategic partners. Visit the company’s website http://www.TopImageSystems.com for more information.
The Top Image Systems logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=4212
Caution Concerning Forward-Looking Statements
Certain matters discussed in this news release are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause our actual results to be materially different from any future results expressed or implied in those forward looking statements. Words such as “will,” “expects,” “anticipates,” “estimates,” and words and terms of similar substance in connection with any discussion of future operating or financial performance identify forward-looking statements. These statements are based on management’s current expectations or beliefs and are subject to a number of risks and uncertainties that could cause actual results to differ materially including, but not limited to, risks in product development, approval and introduction plans and schedules, rapid technological change, customer acceptance of new products, the impact of competitive products and pricing, the lengthy sales cycle, proprietary rights of TIS and its competitors, risk of operations in Israel, government regulation, litigation, general economic conditions and other risk factors detailed in the Company’s most recent annual report on Form 20-F and other subsequent filings with the United States Securities and Exchange Commission. We are under no obligation to, and expressly disclaim any obligation to, update or alter our forward-looking statements, whether as a result of new information, future events or otherwise.
|
|
|
| Top Image Systems Ltd. |
| Consolidated Balance Sheet as of |
|
|
|
|
March 31, |
December 31, |
|
2011 |
2010 |
|
In thousands |
|
Unaudited |
Audited |
|
|
|
| Assets |
|
|
|
|
|
| Current assets: |
|
|
| Cash and cash equivalents |
$4,101 |
$1,763 |
| Restricted cash |
276 |
241 |
| Trade receivables and Unbilled receivables, net |
4,145 |
4,701 |
| Other receivable and prepaid expenses |
778 |
539 |
|
|
|
| Total current assets |
9,300 |
7,244 |
|
|
|
| Long term assets: |
|
|
| Severance pay funds |
1,310 |
1,228 |
| Long-term deposits and long-term assets |
150 |
179 |
| Property and equipment, net |
478 |
448 |
| Intangible assets, net |
46 |
55 |
| Goodwill |
6,056 |
5,870 |
|
|
|
| Total long-term assets |
8,040 |
7,780 |
|
|
|
| Total assets |
$17,340 |
$15,024 |
|
|
|
|
|
|
| Liabilities and Shareholders’ Equity |
|
|
|
|
|
| Current liabilities: |
|
|
| Current maturity of convertible debentures |
$1,626 |
$1,521 |
| Trade payables |
496 |
310 |
| Deferred revenues |
2,315 |
1,659 |
| Accrued expenses and other accounts payable |
1,909 |
1,992 |
|
|
|
| Total current liabilities |
6,346 |
5,482 |
|
|
|
| Long-term liabilities: |
|
|
| Convertible debentures |
4,051 |
3,804 |
| Accrued severance pay |
1,549 |
1,446 |
|
|
|
| Total long-term liabilities |
5,600 |
5,250 |
|
|
|
| Total liabilities |
11,946 |
10,732 |
|
|
|
| Shareholders’ equity |
5,394 |
4,292 |
|
|
|
| Total liabilities and shareholders’ equity |
$17,340 |
$15,024 |
|
|
|
| Top Image Systems Ltd. |
| Statements of Operations for the |
|
|
|
|
Three months ended |
Three months ended |
|
March 31, |
March 31, |
|
2011 |
2010 |
|
In thousands, except per share data |
|
Unaudited |
|
|
|
|
|
|
|
|
|
| Revenues |
$7,158 |
$5,279 |
|
|
|
| Cost of revenues |
2,702 |
2,031 |
|
|
|
| Gross profit |
4,456 |
3,248 |
|
|
|
| Expenses |
|
|
| Research and development costs |
491 |
413 |
| Selling and marketing |
1,729 |
1,471 |
| General and administrative |
1,222 |
1,008 |
|
3,442 |
2,892 |
| Operating income |
1,014 |
356 |
|
|
|
| Financing expenses, net |
(276) |
(1,451) |
|
|
|
| Income (loss) before taxes on income |
738 |
(1,095) |
|
|
|
| Taxes on Income |
(1) |
(6) |
|
|
|
| Net income (loss) for the period |
$737 |
($1,101) |
|
|
|
| Earnings per Share |
|
|
|
|
|
| Basic earning (loss) per share |
$0.08 |
($0.12) |
|
|
|
| Weighted average number of shares used in computation of basic net income (loss) per share |
9,401 |
9,355 |
|
|
|
| Diluted earning (loss) per share |
$0.07 |
($0.12) |
| Weighted average number of shares used in computation of diluted net earnings (loss) per share |
10,493 |
9,355 |
|
|
|
|
|
|
| Reconciliation of GAAP to Non-GAAP results: |
|
|
|
|
|
Three months ended |
Three months ended |
|
March 31, |
March 31, |
|
2011 |
2010 |
|
In thousands, except per share data |
|
|
|
| GAAP operating income |
$1,014 |
$356 |
| Stock-based compensation expenses |
— |
79 |
| Amortization of intangible assets related to acquisition |
11 |
11 |
| Non- GAAP operating income |
$1,025 |
$446 |
|
|
|
| Net income (loss) for the period |
$737 |
($1,101) |
| Stock-based compensation expenses |
— |
79 |
| Amortization of intangible assets related to acquisition |
11 |
11 |
| Change In Fair Value of Convertible Debentures |
346 |
1,266 |
| Non-GAAP Net income |
$1,094 |
$255 |
|
|
|
| Non-GAAP Net income used for basic earnings per share |
1,094 |
255 |
| Interest expenses on convertible debentures used as diluted adjustment |
5 |
32 |
| Non-GAAP Net income used for diluted earnings per share |
$1,099 |
$287 |
|
|
|
| Shares used in diluted earnings per share calculation |
10,493 |
11,172 |
| Non-GAAP diluted earnings per share |
$0.10 |
$0.03 |
|
|
|
| Reconciliation of Net Income to Adjusted EBITDA: |
|
|
|
|
| Net income (loss) for the period |
$737 |
($1,101) |
|
|
|
| Interest Expenses |
5 |
32 |
| Taxes on Income |
1 |
6 |
| Depreciation and amortization expenses |
68 |
77 |
| Non Cash Stock-based compensation expenses |
— |
79 |
| Change In Fair Value of Convertible Debentures |
346 |
1,266 |
|
|
|
| Adjusted EBITDA |
$1,157 |
$359 |
|
|
|
| Adjusted EBITDA Margin |
16% |
7% |
|
|
|
| Reconciliation of operating Income to Adjusted EBITDA: |
|
|
|
|
| Operating income |
$1,014 |
$356 |
| Non Cash Stock-based compensation expenses |
— |
79 |
| Other Financing income (expenses) |
75 |
(153) |
| Depreciation and amortization expenses |
68 |
77 |
|
|
|
| Adjusted EBITDA |
$1,157 |
$359 |
CONTACT: Dana Rubin
Director of Corporate Marketing and Investor Relations
dana.rubin@topimagesystems.com
+972 37679114
KCSA Strategic Communications
Marybeth Csaby / Phil Carlson
212-896-1276 / 1233
mcsaby@kcsa.com / pcarlson@kcsa.com
Diversified Restaurant Holdings is focused on taking the extremely successful Buffalo Wild Wings® (BWW) restaurant/bar concept, which bundles together a warm tavern-like/neighborhood atmosphere, a full made-to-order menu that includes delicious New York-style chicken wings in 14 unique flavors, and a sophisticated multimedia environment, to the next level with their now rapidly emerging Bagger Dave’s Legendary Burger Tavern®.
In addition to managing and expanding the Bagger Dave’s concept, the Company acts as a holding group for a robust network of established BWW franchise locations (currently seven in Florida and twelve in Michigan). The Company is on track for completing its projected target of 38 BWW restaurants by 2017 as outlined in the Buffalo Wild Wings, Inc. Area Development Agreement.
Earlier this year, DFRH expanded its Michigan footprint even farther, tacking on another Bagger Dave’s location in Brighton and a BWW in Traverse City, both excellent markets for the concept. In addition DFRH added a BWW to its sizeable network in Florida, this time in the bustling town of Lakeland, which was similarly identified as a prime community, already attuned to the venue’s style.
DFRH is slated to open two more Bagger Dave’s in Michigan and one more BWW in University Park, Florida before year’s end, positioning adroitly for expansion on stable ground with the retention of industry veteran Bill McClintock as the Company’s Senior VP of Franchise Development. McClintock spent over a decade spearheading Sales and Development operations for Buffalo Wild Wings and, more recently McAlister’s Deli, giving DFRH a clear growth advantage.
With the recent announcement of outstanding FY10 financials by DFRH, showing broad uptake even for locations opened late in the fiscal year, it makes sense to take a closer look at the innovative style and concepts behind the Company’s success, but first, take a look at some of the FY10 results:
• Revenue was up 8.4% to $45.2M, the fourth consecutive year in a row DFRH has shown a healthy revenue increase.
• Opened four new restaurants in the year (three BWW, one Bagger Dave’s) and acquired nine affiliated BWW’s and showed a 16.5% increase in cash flow from operations, bringing in $4.6M, despite massive outlays for logistical expenses related to new infrastructure.
Bagger Dave’s has quickly established a reputation for itself; primarily due to the highly engineered concept driving the business model. Before the first location in Berkley, Michigan even opened in January of 2008, the visionaries behind Bagger Dave’s were refining everything that worked with BWW and merged it into a concept that fuses a modern take on the old-fashioned local pub motif with signature burgers and foods.
By creating a user-friendly and immersive multimedia environment that brings together a bar with a tavern-like restaurant, DFRH has hit the market sweet spot, offering customers a very friendly environment where adults and kids can co-exist in a mutually comfortable setting. It is this basic family-oriented but not exclusive platform that makes the menu really pop.
Bagger Dave’s biggest selling point is the phenomenal burgers that have captivated the hearts and minds (not to mention stomachs) of patrons in Michigan and Florida markets. In just a handful of years, Bagger Dave’s has literally built a cult following, using fresh ingredients and even offering a “create your own masterpiece” feature that allows customers to select from over 30 toppings.
Bagger Dave’s has become a sensation almost overnight and while the burgers are really the star attraction, the menu takes the same casual dining logic employed at BWW and fleshes it out completely, offering a full menu that includes various hot sandwiches, fresh salads, Bagger Dave’s special daily in-house cut and freshly made fries, as well as Sloppy Dave’s Fries®, Dave’s Sweet Potato Chips® and the Amazingly Delicious Turkey Black Bean Chili™.
The fundamental strength of the BWW chain, which has been gaining momentum since the first location opened near Ohio State University in 1982, provided DFRH with a solid return base from which to expand the Bagger Dave’s concept. The Company has made remarkable progress in short time despite an economic downturn in the consumer space with this formula and it is clear that the concept is widely embraced in target markets.
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VANCOUVER, May 10 /PRNewswire/ – Taseko Mines Limited (TSX: TKO) (NYSE Amex: TGB) (“Taseko” or the “Company”) announces an 80% increase in mineral reserves from 445 million tons to 802 million tons at its Gibraltar Copper-Molybdenum mine near Williams Lake, British Columbia.
The reserve evaluation maintained a 0.20% copper cut-off, incorporating a $2.25/lb pit shell design across the 5 pits that make up the Gibraltar deposit. The last reserve update completed in 2008 used a $1.75/lb pit shell for the Gibraltar Extension and $1.50/lb for all other areas. This update will add roughly 1.8 billion lbs of recoverable copper to Gibraltar’s present reserve of 2.5 billion lbs for a total of 4.3 billion recoverable lbs. Molybdenum reserves increase from 30 million lbs to nearly 60 million lbs.
After the completion of Gibraltar Development Plan 3 (GDP3), by December 2012, the Gibraltar ore body will be capable of supporting mining operations of 30 million tons of ore per year, production capacity of 180 million lbs of copper and 2.2 million lbs of molybdenum.
Russell Hallbauer, President and CEO of Taseko, stated, “One of the key objectives for the Company over the past five years has been to unlock the value of Gibraltar by acquiring adjacent mineralized properties like the Gibraltar Extension undertaking additional drilling to more fully understand the geology of the deposit and ultimately putting that all together in a mine engineering design and financial plan that ensures the full economic potential of this large ore body can be unlocked for our shareholders.
The 4.3 billion lbs of recoverable copper that is going to be produced from Gibraltar over the next 27 years is a testament of fulfilling that objective.”
Mr. Hallbauer continued, “Gibraltar will provide significant economic benefit to our current 480 employees, as well as the additional 140 that will be hired once GDP3 is complete. In addition, the mine will make a large contribution to the local, provincial and national economies, as a result of the multiplier effect.”
Gibraltar’s proven and probable reserves as of March 31, 2011 are tabulated below:
Gibraltar Mine Mineral Reserves
As at March 31, 2011
At 0.20% copper cut-off |
| Pit |
Category |
Tons
(millions) |
Cu
(%) |
Mo
(%) |
| Connector |
Proven |
45.1 |
0.30 |
0.012 |
|
Probable |
30.5 |
0.28 |
0.010 |
|
Subtotal |
75.6 |
0.29 |
0.011 |
| Gibraltar East |
Proven |
143.6 |
0.28 |
0.008 |
|
Probable |
71.6 |
0.27 |
0.010 |
|
Subtotal |
215.2 |
0.27 |
0.008 |
| Granite |
Proven |
216.8 |
0.32 |
0.010 |
|
Probable |
32.4 |
0.32 |
0.005 |
|
Subtotal |
249.2 |
0.32 |
0.009 |
| Gibraltar Extension |
Proven |
72.6 |
0.36 |
0.002 |
|
Probable |
31.1 |
0.30 |
0.002 |
|
Subtotal |
103.7 |
0.34 |
0.002 |
| Pollyanna |
Proven |
106.6 |
0.29 |
0.009 |
|
Probable |
51.2 |
0.28 |
0.010 |
|
Subtotal |
157.8 |
0.29 |
0.009 |
| Total |
|
801.6 |
0.30 |
0.008 |
The mineral reserves stated above are contained within the following mineral resources:
Gibraltar Mine Mineral Resources
As at March 31, 2011
At 0.20% copper cut-off |
| Category |
Tons
(millions) |
Cu
(%) |
Mo
(%) |
| Measured |
670.0 |
0.31 |
0.008 |
| Indicated |
280.3 |
0.29 |
0.008 |
| Total |
950.3 |
0.30 |
0.008 |
The resource and reserve estimation was completed by Gibraltar mine staff under the supervision of Scott Jones, P.Eng., Vice President, Engineering and a Qualified Person under National Instrument 43-101. Mr. Jones has verified the methods used to determine grade and tonnage in the geological model, reviewed the long range mine plan, and directed the updated economic evaluation. The estimates used long term metal prices of US$2.25/lb for copper and US$14.00/lb for molybdenum and a foreign exchange of US$0.85/C$1.00. Mr. Jones has reviewed this release. A technical report will be filed on www.sedar.com.
Russell Hallbauer
President and CEO
No regulatory authority has approved or disapproved of the information contained in this news release.
CAUTION REGARDING FORWARD-LOOKING INFORMATION
This document contains “forward-looking statements” that were based on Taseko’s expectations, estimates and projections as of the dates as of which those statements were made. Generally, these forward-looking statements can be identified by the use of forward-looking terminology such as “outlook”, “anticipate”, “project”, “target”, “believe”, “estimate”, “expect”, “intend”, “should” and similar expressions.
Forward-looking statements are subject to known and unknown risks, uncertainties and other factors that may cause the Company’s actual results, level of activity, performance or achievements to be materially different from those expressed or implied by such forward-looking statements. These included but are not limited to:
- uncertainties and costs related to the Company’s exploration and development activities, such as those associated with continuity of mineralization or determining whether mineral resources or reserves exist on a property;
- uncertainties related to the accuracy of our estimates of mineral reserves, mineral resources, production rates and timing of production, future production and future cash and total costs of production and milling;
- uncertainties related to feasibility studies that provide estimates of expected or anticipated costs, expenditures and economic returns from a mining project;
- uncertainties related to our ability to complete the mill upgrade on time estimated and at the scheduled cost;
- uncertainties related to the ability to obtain necessary licenses permits for development projects and project delays due to third party opposition;
- uncertainties related to unexpected judicial or regulatory proceedings;
- changes in, and the effects of, the laws, regulations and government policies affecting our exploration and development activities and mining operations, particularly laws, regulations and policies;
- changes in general economic conditions, the financial markets and in the demand and market price for copper, gold and other minerals and commodities, such as diesel fuel, steel, concrete, electricity and other forms of energy, mining equipment, and fluctuations in exchange rates, particularly with respect to the value of the U.S. dollar and Canadian dollar, and the continued availability of capital and financing;
- the effects of forward selling instruments to protect against fluctuations in copper prices and exchange rate movements and the risks of counterparty defaults, and mark to market risk;
- the risk of inadequate insurance or inability to obtain insurance to cover mining risks;
- the risk of loss of key employees; the risk of changes in accounting policies and methods we use to report our financial condition, including uncertainties associated with critical accounting assumptions and estimates;
- environmental issues and liabilities associated with mining including processing and stock piling ore; and
- labour strikes, work stoppages, or other interruptions to, or difficulties in, the employment of labour in markets in which we operate mines, or environmental hazards, industrial accidents or other events or occurrences, including third party interference that interrupt the production of minerals in our mines.
For further information on Taseko, investors should review the Company’s annual Form 40-F filing with the United States Securities and Exchange Commission www.sec.com and home jurisdiction filings that are available at www.sedar.com.
Information Concerning Estimates of Measured and Indicated Resources
This news release uses the terms “measured resources” and “indicated resources”. Taseko Mines Limited advises investors that although these terms are recognized and required by Canadian regulations (under National Instrument 43-101 Standards of Disclosure for Mineral Projects), the U.S. Securities and Exchange Commission does not recognize them. Investors are cautioned not to assume that any part or all of the mineral deposits in these categories will ever be converted into reserves.
VANCOUVER, May 10 /PRNewswire-FirstCall/ – (All figures in US dollars except where noted) – Northgate Minerals Corporation (“Northgate” or the “Corporation”) (TSX: NGX) (NYSE Amex: NXG) today announced its financial and operating results for the three months ended March 31, 2011 in accordance with the newly adopted International Financial Reporting Standards (“IFRS”).
First Quarter Highlights
- The net profit was $19.8 million or $0.07 per share.
- The adjusted net profit(1) was $7.5 million or $0.02 per share.
- Strong cash flow from operations of $40.1 million or $0.14 per share.
- First quarter production was 51,210 ounces of gold and 6.5 million pounds of copper at an average net cash cost of $699 per ounce.
- Production guidance for 2011 remains unchanged: 195,000 ounces – 205,000 ounces at a cash cost of $805 – $845 per ounce.
- First quarter metal sales were 56,937 ounces of gold at a realized price of $1,386 per ounce and 9.0 million pounds of copper at a realized price of $2.77 per pound.
- Northgate’s cash balance at the end of the first quarter 2011 was $308.1 million.
- Construction activities at Young-Davidson remain on schedule and on budget. At the end of the first quarter 2011, Northgate had invested approximately $130 million towards construction of the Young-Davidson mine.
- Subsequent to the end of the first quarter, Northgate entered into a Cdn$40 million three-year senior secured revolving credit facility with BNP Paribas.
“First quarter production was highlighted by an excellent performance at Kemess South, as the mine wrapped up with higher gold and copper production than forecast” commented Ken Stowe, President and CEO. “While production at our Australian mines came in lower than plan, we are pleased to report that our guidance remains the same for the year as both mines are forecasting higher production for the balance of 2011. On the development front, we are excited with the excellent progress being made at Young-Davidson, as the project remains on schedule and on budget.”
“As the Kemess South mine came to a close in March, I would like to take this opportunity to thank our dedicated workforce that has been a part of the Northgate-Kemess family since taking ownership of the mine in 2000. The work and commitment of our workforce have been exemplary, transforming the mine into a world-class asset, with production close to 3 million ounces of gold and 700 million pounds of copper. We now look forward to the rebirth of Kemess, having recently released an updated resource estimate for the Kemess Underground project and are expecting to complete a Preliminary Assessment by the summer.”
Financial Performance
Northgate recorded consolidated revenue of $123.0 million in the first quarter of 2011, compared with revenue of $125.3 million recorded in the same period last year. Revenues were strong in the first quarter as a result of higher metal prices.
The adjusted net profit for the first quarter of 2011 was $7.5 million or $0.02 per share, compared with $6.3 million or $0.02 per share in the first quarter of 2010. The net profit for the first quarter of 2011 was $19.8 million or $0.07 per share, compared with $3.9 million or $0.01 per share in the first quarter of 2010.
Northgate generated excellent cash flow from operations of $40.1 million or $0.14 per share in the first quarter of 2011. The Corporation continues to maintain a strong balance sheet, with cash and cash equivalents totalling $308.1 million as of March 31, 2011.
Corporate Revolver
Subsequent to the end of the first quarter 2011, Northgate entered into a Cdn$40 million, three-year senior secured revolving credit facility (the “Revolver”) with BNP Paribas. While Northgate does not forecast the need to draw down any funds, the Revolver provides additional financial capacity, if necessary, for the construction of the Young-Davidson mine.
Adoption of International Financial Reporting Standards (“IFRS”)
In February 2008, the Accounting Standards Board confirmed that publicly-accountable entities will be required to prepare financial statements in accordance with IFRS for interim and annual financial statements for fiscal years beginning on or after January 1, 2011. Accordingly, Northgate has adopted IFRS effective January 1, 2011, which is reflected in our unaudited condensed consolidated interim financial statements for the first quarter ended March 31, 2011. In addition, all comparative figures for the 2010 fiscal year, included in our interim financial statements and related first quarter management’s discussion and analysis (“MD&A”), have been restated in accordance with IFRS. Previously, Northgate prepared its consolidated annual and consolidated interim financial statements in accordance with Canadian generally accepted accounting principles (“Canadian GAAP”).
Details of the significant accounting differences between IFRS and Canadian GAAP can be found in Northgate’s first quarter MD&A and note 16 of our interim financial statements.
Results from Operations
Fosterville Gold Mine
Fosterville achieved production of 20,632 ounces of gold in the first quarter of 2011. Early in the year, the mill was impacted by issues within the BIOX® circuit, which affected production for the quarter. These issues have since been resolved and there is no material impact to the mine’s annual production forecast. Production is back on track, highlighted by a monthly record of just over 11,000 ounces in March. We are pleased to announce that Fosterville produced its half-millionth ounce of gold on the property in April.
During the quarter, mine development continued to progress well and was in line with forecast. A total of 188,906 tonnes of ore was mined and mine development advanced 2,203 m. Development towards the new Harrier zone also continued to progress well and production is on track to commence in the second half of 2011.
During the quarter, 161,064 tonnes of ore was milled at a grade of 4.96 grams per tonne (“g/t”), compared with the 191,663 tonnes milled at a grade of 5.11 g/t in the corresponding quarter of 2010.
The average net cash cost of production for the first quarter of 2011 was $1,012 per ounce, which was adversely effected by the dramatic increase in the Australian dollar relative to the US dollar and, to a lesser extent, by lower gold production. In the most recent quarter, the Australian dollar averaged 11% higher compared to the corresponding period last year. For the balance of 2011, cash costs in Australian dollars are expected to decrease relative to the first quarter and the annual forecast remains consistent with the original guidance provided.
Stawell Gold Mine
During the first quarter, the Stawell mine produced 16,006 ounces of gold, as a result of lower head grades mined. In the second quarter of 2011, production is expected to rise as grades improve and the annual production forecast remains unchanged.
During the quarter, a total of 197,317 tonnes of ore was mined and mine development advanced 1,493 m. Also during the quarter, 211,349 tonnes of ore was milled at an average grade of 2.85 g/t. Although mill production was higher than plan, the processing of higher carbonaceous and low-grade ore resulted in lower-head grades, which impacted gold recoveries and production during the quarter.
Total operating costs were lower during the first quarter at A$76 per tonne of ore milled. Mining costs were A$50 per tonne of ore mined.
During the first quarter of 2011, the average net cash cost of production was $1,010 per ounce, resulting from the dramatic increase in the Australian dollar relative to the US dollar and lower gold production. For the balance of 2011, cash costs in Australian dollars are expected to decrease relative to the first quarter and the annual forecast remains consistent with the original guidance provided.
Kemess South
During the first quarter, Kemess South posted strong production of 14,572 ounces of gold and 6.5 million pounds of copper. Quarterly production exceeded original guidance as a result of higher grades and higher mill throughput. After processing all remaining stockpiles, the mill ceased production in March. The net cash cost of production for the first quarter was negative $85 per ounce of gold, as a result of higher copper prices, which increased 33% from the same period last year.
During the quarter, approximately 0.3 million tonnes of ore and waste were removed from the eastern end of the open pit. Unit mining costs were low at Cdn$0.92 per tonne moved.
2011 Production Forecast
Production for the full year 2011 remains unchanged from the original forecast:
|
|
|
|
Total
(ounces) |
Forecast 2011 Cash Cost ($/oz) 1 |
|
| Fosterville |
97,000 – 102,000 |
$885 – $930 |
| Stawell |
86,000 – 91,000 |
$800 – $850 |
| Kemess (Actual) |
14,572 |
($85) |
|
195,000 – 205,000 |
$805 – $845 |
1 Assuming exchange rates of US$/Cdn$1.00 and US$/A$1.00 for Q2 to Q4 2011.
Building Young-Davidson
Construction activities at Young-Davidson remain on schedule and on budget. By the end of the first quarter 2011, Northgate had invested approximately $130 million towards construction of the Young-Davidson mine. In addition, 80% of the contracts worth approximately $170 million were awarded, 90% of the equipment purchase orders were placed and 66% of the engineering was completed.
Young-Davidson is scheduled for commissioning activities in the fourth quarter of 2011 and is targeting start-up of production in late Q1 2012. The mine is expected to generate an average of 180,000 ounces of gold annually over an initial 15-year mine life.
Exploration Overview
Young-Davidson
Exploration at Young-Davidson in the first quarter was part of a $2.0 m drill program to explore for other deposits outside of the known reserves and resources currently being developed. Two drills totaling 5,000 m operated during the quarter focusing on the YD West zone. Hole YD10-198B (see press release dated April 13, 2011), located approximately 115 m below discovery hole 198, returned 5.43 g/t gold over 10.95 m. Drilling for the balance of 2011 will continue to focus on the YD West zone with the intent of delineating additional resources. If the 2011 drilling program is successful, it is expected that an initial mineral resource estimate for the YD West zone will be completed by the end of the year.
In addition to this exploration program, underground delineation drilling in support of future underground mining activities began in late 2010 and is currently focusing on a sector of the Upper Boundary Zone. This portion of the program is nearly complete and will be reported upon during the second quarter of 2011 once all results have been received. It is expected that the results of this program will be incorporated into the annual reserve and resource re-estimate at the end of 2011.
Kemess Underground
During the quarter, Northgate released an updated resource estimate for its Kemess Underground project, located five kilometres north of the Kemess South mine in north-central British Columbia. The updated resource estimate followed on the completion of a 30-hole infill diamond drill program at Kemess Underground that was completed in 2010. The updated resource estimate now contains an indicated resource of 136.5 million tonnes with 2.6 million ounces of gold and 860.6 million pounds of copper. This represents 18% increase in tonnes, a 10% increase in contained gold and a 9% increase in contained copper when compared with the May 2010 total.
The mineral resource estimate will form the basis of a Preliminary Assessment, which will outline the economics and timeline for mining the current resources. Northgate expects to file the Preliminary Assessment in the third quarter of 2011.
Australia
At Stawell, drilling focused mainly on three target areas on or immediately adjacent to the current mining lease. Two of these areas, the Northgate Gift and Wonga Dome, were discovered by diamond drilling during our “Big Fish” exploration campaign in 2010. The third target area is GG6L, located below GG6, where there is potential to add to high-grade reserves.
During the quarter, approximately 8,800 m of drilling was completed. Within the Northgate Gift, a wedge hole intersected a target zone located 240 m above and south of the initial discovery hole, which suggests a continuous mineralized horizon. Follow-up drilling, which will take all of 2011 to complete, will better define the size and geometry of the zone and associated mineralization
Within the Wonga Dome, subsequent drilling has intersected lower sections of the basalt dome, where it is flanked by coarser grained sediments less favourable for gold mineralization. The next few holes are designed to intersect the basalt dome at a similar elevation and geologic setting as discovery hole 649 (13.7 g/t over 5.45 m – see press release dated November 1, 2010), at which point Northgate will evaluate whether mineralization in the area is sufficiently robust to support driving across to the zone to complete resource definition drilling.
Exploration activity at Fosterville, which had been scheduled for the first quarter, was deferred until the second quarter and commenced in April. Exploration expenditures are forecast to be $3.8 million for approximately 18,000 m of diamond drilling, mainly focusing on resource conversion targets below and along trend from the currently mined Phoenix deposit.
Summarized Consolidated Results
| (Thousands of US dollars, except where noted) |
|
|
Q1 2011 |
Q1 2010 |
| Financial Data |
|
|
|
|
| Revenue |
|
|
$ 123,027 |
$ 125,278 |
| Adjusted net profit 1 |
|
|
7,476 |
6,291 |
| Per share (basic) |
|
|
0.02 |
0.02 |
| Net profit |
|
|
19,755 |
3,887 |
| Per share (basic) |
|
|
0.07 |
0.01 |
| Cash flow from operations |
|
|
40,109 |
12,052 |
| Cash and cash equivalents |
|
|
308,088 |
230,306 |
| Total assets |
|
|
$ 815,415 |
$ 713,710 |
| Operating Data |
|
|
|
|
| Gold production (ounces) |
|
|
|
|
| Fosterville |
|
|
20,632 |
26,421 |
| Stawell |
|
|
16,006 |
22,238 |
| Kemess |
|
|
14,572 |
24,703 |
| Total gold production |
|
|
51,210 |
73,362 |
| Gold sales (ounces) |
|
|
|
|
| Fosterville |
|
|
19,137 |
25,944 |
| Stawell |
|
|
16,470 |
21,411 |
| Kemess |
|
|
21,330 |
27,773 |
| Total gold sales |
|
|
56,937 |
75,128 |
| Realized gold price ($/ounce) 2 |
|
|
1,386 |
1,128 |
| Net cash cost ($/ounce) 3 |
|
|
|
|
| Fosterville |
|
|
1,012 |
679 |
| Stawell |
|
|
1,000 |
794 |
| Kemess |
|
|
(85) |
502 |
| Average net cash cost ($/ounce) |
|
|
696 |
654 |
| Copper production (thousands pounds) |
|
|
6,497 |
9,529 |
| Copper sales (thousands pounds) |
|
|
8,998 |
11,145 |
| Realized copper price ($/pound) 2 |
|
|
2.77 |
3.49 |
| 1 |
Adjusted net profit is a non-IFRS measure. See section entitled “Non-IFRS Measures” in the Corporation’s interim MD&A Report. |
| 2 |
Commencing in the fourth quarter of 2010, metal pricing quotational period is three months after the month of ship loading for copper and one month after the month of ship loading for gold produced at Kemess South. Previously, the metal pricing quotational period was three months after the month of arrival (“MAMA”) at the receiving facility for copper and one MAMA for gold. Therefore, realized prices reported will differ from the average quarterly reference prices, since realized price calculations incorporate the actual settlement price for prior period sales, as well as the forward price profiles of both metals for unpriced sales at the end of the quarter. |
| 3 |
Net cash cost per ounce of production is a non-IFRS measure. See section entitled “Non-IFRS Measures” in the Corporation’s interim MD&A Report. |
Interim Condensed Consolidated Statements of Financial Position
(Previously referred to as the Consolidated Balance Sheets) |
|
|
|
|
March 31 |
|
December 31 |
|
January 1 |
|
| Thousands of US dollars, unaudited |
2011 |
|
2010 |
|
2010 |
|
|
|
|
|
|
|
|
| Assets |
|
|
|
|
|
|
| Current Assets |
|
|
|
|
|
|
| Cash and cash equivalents |
$ 308,088 |
|
$ 334,840 |
|
$ 253,544 |
|
| Trade and other receivables, including derivatives |
44,151 |
|
62,051 |
|
27,961 |
|
| Income taxes receivable |
— |
|
2,236 |
|
— |
|
| Inventories (note 3) |
28,569 |
|
46,268 |
|
44,599 |
|
| Prepaid expenses |
3,915 |
|
2,367 |
|
2,566 |
|
| Assets held for sale (note 4) |
13,075 |
|
— |
|
— |
|
|
|
|
|
|
|
|
| Total Current Assets |
397,798 |
|
447,762 |
|
328,670 |
|
|
|
|
|
|
|
|
| Non-current Assets |
|
|
|
|
|
|
| Other assets |
41,740 |
|
40,819 |
|
27,544 |
|
| Deferred tax assets |
21,898 |
|
13,014 |
|
20,113 |
|
| Mineral property, plant and equipment |
352,497 |
|
323,903 |
|
316,086 |
|
| Investments (note 5) |
1,482 |
|
36,519 |
|
38,001 |
|
|
|
|
|
|
|
|
| Total Non-current Assets |
417,617 |
|
414,255 |
|
401,744 |
|
|
|
|
|
|
|
|
| Total Assets |
$ 815,415 |
|
$ 862,017 |
|
$ 730,414 |
|
|
|
|
|
|
|
|
| Liabilities and Shareholders’ Equity |
|
|
|
|
|
|
| Current Liabilities |
|
|
|
|
|
|
| Accounts payable and accrued liabilities, including derivatives |
$ 73,458 |
|
$ 93,534 |
|
$ 51,717 |
|
| Income taxes payable |
3,873 |
|
— |
|
29,395 |
|
| Short-term loan (note 6) |
— |
|
40,161 |
|
41,515 |
|
| Equipment financing obligations |
7,742 |
|
7,945 |
|
5,995 |
|
| Provisions (note 7) |
26,880 |
|
38,359 |
|
31,717 |
|
|
|
|
|
|
|
|
| Total Current Liabilities |
111,953 |
|
179,999 |
|
160,339 |
|
|
|
|
|
|
|
|
| Non-current Liabilities |
|
|
|
|
|
|
| Equipment financing obligations |
13,011 |
|
10,763 |
|
4,656 |
|
| Convertible senior notes |
132,594 |
|
131,235 |
|
— |
|
| Option component of convertible senior notes |
36,787 |
|
47,414 |
|
— |
|
| Other long-term liabilities |
378 |
|
379 |
|
3,619 |
|
| Provisions (note 7) |
31,226 |
|
30,459 |
|
29,963 |
|
|
|
|
|
|
|
|
| Total Non-current Liabilities |
213,996 |
|
220,250 |
|
38,238 |
|
|
|
|
|
|
|
|
| Total Liabilities |
325,949 |
|
400,249 |
|
198,577 |
|
|
|
|
|
|
|
|
| Shareholders’ Equity |
|
|
|
|
|
|
| Common shares |
407,197 |
|
407,029 |
|
402,879 |
|
| Contributed surplus |
10,083 |
|
8,915 |
|
7,090 |
|
| Accumulated other comprehensive income (loss) |
29,621 |
|
23,014 |
|
(4,108) |
|
| Retained earnings |
42,565 |
|
22,810 |
|
125,976 |
|
|
|
|
|
|
|
|
| Total Shareholders’ Equity |
489,466 |
|
461,768 |
|
531,837 |
|
|
|
|
|
|
|
|
| Total Liabilities and Shareholders’ Equity |
$ 815,415 |
|
$ 862,017 |
|
$ 730,414 |
|
Subsequent event (note 15)
The accompanying notes form an integral part of these condensed consolidated interim financial statements.
| Interim Condensed Consolidated Statements of Comprehensive Income |
|
|
|
Three Months Ended March 31 |
| Thousands of US dollars, except share and per share amounts, unaudited |
|
|
2011 |
|
2010 |
| Revenue |
|
|
$ 123,027 |
|
$ 125,278 |
| Operating expenses |
|
|
|
|
|
| Cost of sales (note 3) |
|
|
110,095 |
|
116,102 |
| Administrative and general |
|
|
3,785 |
|
3,786 |
| Exploration |
|
|
4,901 |
|
4,127 |
| Other expenses (note 11) |
|
|
852 |
|
249 |
|
|
|
119,633 |
|
124,264 |
| Profit from operating activities |
|
|
3,394 |
|
1,014 |
| Financing income (expenses) |
|
|
|
|
|
| Interest income |
|
|
1,659 |
|
932 |
| Finance costs (note 10) |
|
|
(753) |
|
(744) |
| Currency translation gain |
|
|
5,184 |
|
4,293 |
| Fair value adjustment on option component of convertible notes |
|
|
10,627 |
|
— |
| Write-down of investments |
|
|
— |
|
(340) |
|
|
|
16,717 |
|
4,141 |
| Profit before income taxes |
|
|
20,111 |
|
5,155 |
| Income tax expense |
|
|
(356) |
|
(1,268) |
| Net profit for the period |
|
|
19,755 |
|
3,887 |
| Other comprehensive income (loss) |
|
|
|
|
|
| Unrealized loss on available for sale securities |
|
(114) |
|
(866) |
| Unrealized gain on translation of foreign operations |
|
|
1,787 |
|
4,965 |
| Reclassification of impairment on available for sale investments to profit or loss |
|
– |
|
340 |
| Reclassification of realized loss on available for sale investments to profit or loss |
|
|
4,934 |
|
– |
|
|
|
6,607 |
|
4,439 |
| Comprehensive income |
|
|
$ 26,362 |
|
$ 8,326 |
| Earnings per share (note 12) |
|
|
|
|
|
| Basic |
|
|
$ 0.07 |
|
$ 0.01 |
| Diluted |
|
|
$ 0.03 |
|
$ 0.01 |
| Weighted average shares outstanding (note 12) |
|
|
|
|
|
| Basic |
|
|
291,877,902 |
|
290,718,756 |
| Diluted |
|
|
334,617,292 |
|
292,005,260 |
| The accompanying notes form an integral part of these condensed consolidated interim financial statements. |
|
|
|
|
|
|
Interim Condensed Consolidated Statements of Cash Flows |
|
|
|
|
|
Three Months Ended March 31 |
|
|
Thousands of US dollars, unaudited |
|
|
2011 |
|
2010 |
|
|
Operating Activities |
|
|
|
|
|
|
|
Net profit for the period |
|
|
$ 19,755 |
|
$ 3,887 |
|
|
Adjustments for: |
|
|
|
|
|
|
|
Depreciation and depletion |
|
|
31,592 |
|
31,558 |
|
|
Unrealized currency translation gains |
|
|
(352) |
|
(324) |
|
|
Loss (gain) on disposal of assets |
|
|
(394) |
|
333 |
|
|
Stock-based compensation |
|
|
1,225 |
|
1,386 |
|
|
Accrual of employee severance costs |
|
|
995 |
|
438 |
|
|
Interest income |
|
|
(1,659) |
|
(932) |
|
|
Finance costs |
|
|
753 |
|
744 |
|
|
Income tax expense |
|
|
356 |
|
1,268 |
|
|
Income tax credited to exploration expense |
|
|
(97) |
|
— |
|
|
Change in fair value of forward contracts |
|
|
(967) |
|
2,894 |
|
|
Fair value adjustment on option component of convertible notes |
|
|
(10,627) |
|
— |
|
|
Write-down of investments |
|
|
— |
|
340 |
|
|
Gain on sale of investments |
|
|
(17) |
|
— |
|
|
Changes in operating working capital and other (note 14) |
|
|
1,666 |
|
(2,080) |
|
|
Interest received |
|
|
1,468 |
|
932 |
|
|
Interest paid |
|
|
(3,461) |
|
(564) |
|
|
Income taxes paid |
|
|
(127) |
|
(27,828) |
|
|
|
|
|
40,109 |
|
12,052 |
|
|
|
|
|
|
|
|
|
|
Investing Activities |
|
|
|
|
|
|
|
Increase in restricted cash |
|
|
— |
|
(9,879) |
|
|
Purchase of plant and equipment |
|
|
(4,975) |
|
(8,768) |
|
|
Mineral property development |
|
|
(14,680) |
|
(12,541) |
|
|
Assets under construction |
|
|
(45,938) |
|
(2,848) |
|
|
Proceeds from sale of equipment |
|
|
49 |
|
251 |
|
|
Proceeds from sale of investments |
|
|
40,954 |
|
— |
|
|
Purchase of investments |
|
|
(201) |
|
— |
|
|
Deferred transaction costs paid |
|
|
(123) |
|
— |
|
|
|
|
|
(24,914) |
|
(33,785) |
|
|
|
|
|
|
|
|
|
|
Financing Activities |
|
|
|
|
|
|
|
Repayment of equipment financing obligations |
|
|
(2,748) |
|
(1,514) |
|
|
Cash from equipment financing |
|
|
1,275 |
|
— |
|
|
Repayment of short-term loan |
|
|
(40,161) |
|
(378) |
|
|
Repayment of other long-term liabilities |
|
|
(453) |
|
(217) |
|
|
Issuance of common shares |
|
|
111 |
|
223 |
|
|
|
|
|
(41,976) |
|
(1,886) |
|
|
Effect of exchange rate changes on cash and cash equivalents |
|
|
29 |
|
381 |
|
|
Decrease in cash and cash equivalents |
|
|
(26,752) |
|
(23,238) |
|
|
Cash and cash equivalents, beginning of period |
|
|
334,840 |
|
253,544 |
|
|
Cash and cash equivalents, end of period |
|
|
$ 308,088 |
|
$ 230,306 |
|
|
|
|
|
|
|
|
|
|
The accompanying notes form an integral part of these condensed consolidated interim financial statements. |
|
|
|
|
|
|
* * * * * * *
This press release for the first quarter ended March 31, 2011 should be read in conjunction with Northgate’s first quarter MD&A, which is available on our website at www.northgateminerals.com.
* * * * * * *
Annual General Meeting and Q1 2011 First Quarter Results Conference Call and Webcast
Northgate will be hosting its Annual General Meeting (“AGM”) on Tuesday, May 10, 2011 at 10:00 am, Toronto time. The AGM will be held at The TMX Broadcast and Conference Centre, 130 King Street West, Toronto, Canada. This event will also include an overview of Northgate’s 2011 first quarter financial results.
You may participate in our conference call by calling 647-427-7450 or toll free in North America at 1-888-231-8191. To ensure your participation, please call five minutes prior to the scheduled start of the call.
A live audio webcast and presentation package will be available on Northgate’s homepage at www.northgateminerals.com. Information pertaining to the conference replay, available from May 10 to May 24, 2011, can also be found on our website.
* * * * * * *
Northgate Minerals Corporation is a gold and copper producer with mining operations, development projects and exploration properties in Canada and Australia. Our vision is to be the leading intermediate gold producer by identifying, acquiring, developing and operating profitable, long-life mining properties.
* * * * * * *
Qualified Person
The program design, implementation, quality assurance/quality control and interpretation of the results are under the control of Northgate’s geological staff, which includes a number of individuals who are qualified persons as defined under NI 43-101. Carl Edmunds, PGeo, Northgate’s Exploration Manager, has reviewed the geologic content of this release.
Cautionary Note Regarding Forward-Looking Statements and Information:
This Northgate press release contains “forward-looking information”, as such term is defined in applicable Canadian securities legislation and “forward-looking statements” within the meaning of the United States Private Securities Litigation Reform Act of 1995, concerning Northgate’s future financial or operating performance and other statements that express management’s expectations or estimates of future developments, circumstances or results. Generally, forward-looking information can be identified by the use of forward-looking terminology such as “expects”, “believes”, “anticipates”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “plans” and variations of such words and phrases, or by statements that certain actions, events or results “may”, “will”, “could”, “would” or “might”, “be taken”, “occur” or “be achieved”. Forward-looking information is based on a number of assumptions and estimates that, while considered reasonable by management based on the business and markets in which Northgate operates, are inherently subject to significant operational, economic and competitive uncertainties and contingencies. Northgate cautions that forward-looking information involves known and unknown risks, uncertainties and other factors that may cause Northgate’s actual results, performance or achievements to be materially different from those expressed or implied by such information, including, but not limited to gold and copper price volatility; fluctuations in foreign exchange rates and interest rates; the impact of any hedging activities; discrepancies between actual and estimated production, between actual and estimated reserves and resources or between actual and estimated metallurgical recoveries; costs of production; capital expenditure requirements; the costs and timing of construction and development of new deposits; and the success of exploration and permitting activities. In addition, the factors described or referred to in the section entitled “Risk Factors” in Northgate’s Annual Information Form for the year ended December 31, 2010 or under the heading “Risks and Uncertainties” in Northgate’s 2010 Annual Report, both of which are available on the SEDAR website at www.sedar.com, should be reviewed in conjunction with the information found in this press release. Although Northgate has attempted to identify important factors that could cause actual results, performance or achievements to differ materially from those contained in forward-looking information, there can be other factors that cause results, performance or achievements not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate or that management’s expectations or estimates of future developments, circumstances or results will materialize. Accordingly, readers should not place undue reliance on forward-looking information. The forward-looking information in this press release is made as of the date of this press release, and Northgate disclaims any intention or obligation to update or revise such information, except as required by applicable law.
Cautionary Note to US Investors Regarding Mineral Reporting Standards:
The Corporation prepares its disclosure in accordance with the requirements of securities laws in effect in Canada, which differ from the requirements of US securities laws. Terms relating to mineral resources in this press release are defined in accordance with National Instrument 43-101-Standards of Disclosure for Mineral Projects under the guidelines set out in the Canadian Institute of Mining, Metallurgy, and Petroleum Standards on Mineral Resources and Mineral Reserves. The Securities and Exchange Commission (the “SEC”) permits mining companies, in their filings with the SEC, to disclose only those mineral deposits that a company can economically and legally extract or produce. The Corporation uses certain terms, such as, “measured mineral resources”, “indicated mineral resources”, “inferred mineral resources” and “probable mineral reserves”, that the SEC does not recognize (these terms may be used in this press release and are included in the Corporation’s public filings which have been filed with securities commissions or similar authorities in Canada).
SOURCE Northgate Minerals Corporation
May 10, 2011 (Business Wire) — CKx, Inc. (NASDAQ: CKXE), an owner of premium entertainment content, today announced that it has entered into a definitive merger agreement to be acquired by an affiliate of Apollo Global Management (“Apollo”), a leading global alternative asset manager.
Under the terms of the agreement, CKx stockholders will receive $5.50 in cash for each share that they hold, representing an approximately 40% premium over CKx’s average closing price over the past six months and an approximately 25% premium over the closing price on Monday, May 9, 2011. Goldman Sachs Bank USA provided a debt financing commitment in connection with the transaction, which is subject to customary conditions.
The Board of Directors of CKx has approved the merger agreement and has resolved to recommend that CKx stockholders approve the merger. In connection with the definitive merger agreement reached with the Company, Apollo has also obtained support agreements from two significant stockholders, The Promenade Trust, the sole beneficiary of which is Lisa Marie Presley and which is the Company’s partner in Elvis Presley Enterprises, and Robert F.X. Sillerman, the Company’s largest stockholder.
Michael G. Ferrel, Chairman and Chief Executive Officer of CKx, said: “We look forward to working with Apollo, a growth-oriented investor who has a successful history of investing in the media and entertainment sector and one that the Board and management team are confident will serve as a strong steward for the Company’s brands going forward. The transaction allows CKx stockholders to realize significant value from their investment in the Company and the Board has determined that the transaction is advisable, fair and in the best interest of the Company’s public stockholders.”
Aaron J. Stone, a senior partner of Apollo said: “CKx owns a portfolio of irreplaceable assets that present a strong foundation on which to build an exciting future. We look forward to working with Mike Ferrel and the rest of the CKx management team.”
The acquisition of CKx will be completed through a cash tender offer for shares of common stock that is expected to commence shortly and will expire 20 business days after it commences, subject to extension as permitted or required by the merger agreement. The tender offer will be subject to customary conditions, including (i) that the number of shares validly tendered and not withdrawn, together with the shares subject to the stockholder support agreements, represent at least a majority of the outstanding shares of CKx on a fully-diluted basis upon consummation of the tender offer and (ii) the expiration of the applicable waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976. The merger agreement does not include a financing condition.
The tender offer would be followed by a merger in which each share of common stock not acquired in the offer will be converted into the right to receive $5.50. In certain circumstances, the parties have agreed to complete the transaction through a one-step merger after receipt of stockholder approval. Upon completion of the transaction, CKx will become a private company, controlled by an affiliate of Apollo Global Management.
Gleacher & Company and Wachtell, Lipton, Rosen & Katz are serving as financial and legal advisor to the Company, respectively. AGM Partners LLC acted as lead financial advisor to Apollo. Other financial advisors to Apollo include Goldman Sachs & Co. and Evolution Media Capital. Legal advisers to Apollo include Paul, Weiss, Rifkind, Wharton & Garrison LLP and O’Melveny & Myers LLP.
About CKx, Inc.
CKx, Inc. is engaged in the ownership, development and commercial utilization of globally recognized entertainment content. The Company’s current properties include the rights to the name, image and likeness of Elvis Presley and Muhammad Ali, the operations of Graceland, and proprietary rights to the IDOLS and So You Think You Can Dance television brands, including the American Idol series in the United States and local adaptations of the IDOLS and So You Think You Can Dance television show formats which, collectively, air in more than 100 countries. For more information about CKx, Inc., visit its corporate website at www.ckx.com.
About Apollo Global Management, LLC
Apollo is a leading global alternative asset manager with offices in New York, Los Angeles, London, Frankfurt, Luxembourg, Singapore, Mumbai and Hong Kong. Apollo had assets under management of $68 billion as of December 31, 2010, in private equity, credit-oriented capital markets and real estate funds invested across a core group of nine industries where Apollo has considerable knowledge and resources. For more information about Apollo, please visit www.agm.com.
IMPORTANT NOTICE: This press release is for informational purposes only and is not an offer to buy or the solicitation of an offer to sell any shares of CKx’s common stock. The tender offer described herein has not yet been commenced. On the commencement date of the tender offer, an offer to purchase, a letter of transmittal and related documents will be filed with the Securities and Exchange Commission, will be mailed to stockholders of record and will also be made available for distribution to beneficial owners of common stock. The solicitation of offers to buy the CKx common stock will only be made pursuant to the offer to purchase, the letter of transmittal and related documents. When they are available, stockholders should read those materials carefully because they will contain important information, including the various terms of, and conditions to, the tender offer. When they are available, stockholders will be able to obtain the offer to purchase, the letter of transmittal and related documents without charge from the Securities and Exchange Commission’s Website at www.sec.gov or from the information agent that we select. Stockholders are urged to read carefully those materials when they become available prior to making any decisions with respect to the tender offer.
CKx will file a solicitation/recommendation statement with the SEC in connection with the tender offer, and, if required, will file a proxy statement or information statement with the SEC in connection with the second-step merger. Stockholders are strongly advised to read these documents if and when they become available because they will contain important information about the tender offer and the proposed merger. Stockholders would be able to obtain a free copy of the solicitation/recommendation statement and the proxy statement or information statement as well as other filings containing information about CKx, the tender offer and the merger, if any, when available, without charge, at the SEC’s internet site (http://www.sec.gov). In addition, copies of the solicitation/recommendation statement, the proxy statement or information statement and other filings containing information about CKx, the tender offer and the merger may be obtained, if and when available, without charge, by directing a request to CKx, Inc., Attention: Investor Relations, 650 Madison Avenue, New York, New York 10022 or on the CKx website at (http://ir.ckx.com).
Forward-Looking Statements
This release contains forward-looking statements as defined by the federal securities law which are based on our current expectations and assumptions, which are subject to a number of risks and uncertainties that could cause actual results to differ materially from those anticipated, projected or implied, including, among other things, risks relating to the expected timing of the completion and financial benefits of the tender offer and the merger. We undertake no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise.
Notice to Investors
SOURCE: CKx, Inc.
Website: http://ir.ckx.com/index.cfm
ckxe-g
For CKx, Inc.:
William Schmitt, ICR Inc.
203-682-8200
For Apollo Global Management, LLC investor inquiries:
Gary M. Stein
212-822-0467
Head of Corporate Communications
gstein@apollolp.comor
For Apollo Global Management, LLC media inquiries:
Charles Zehren, Rubenstein Associates
212-843-8590
czehren@rubenstein.com
MELVILLE, NY — (Marketwire) — 05/10/11 — FONAR Corporation (NASDAQ: FONR), today announced its earnings for the third quarter of fiscal 2011, ended March 31, 2011. The Company has net income for the past four quarters and net income from operations for the past five quarters.
Statement of Operations Items
For the quarter ended March 31, 2011, net income was $1.2 million and income from operations was $1.4 million. This is compared to the same period ended March 31, 2010, when the net loss was $8,000 and income from operations was $25,000. (For a Chart visit: www.fonar.com/news/051011.htm).
For the nine months ended March 31, 2011, net income was $2.9 million as compared to a loss of $3.0 million for the nine-month period ended March 31, 2010.
Total revenues increased 15% to $8.7 million for the three-month period ended March 31, 2011, from $7.5 million for the corresponding quarter which ended one year earlier on March 31, 2010. Total revenues for the nine months ended March 31, 2011 were $25.4 million, as compared to the nine months ended December 31, 2010, one year earlier, when net revenues were $23.2 million.
Total operating costs and expenses decreased 3% from $7.5 million for the quarter ended March 31, 2010 to $7.3 million for the quarter ended March 31, 2011.
Revenues from product sales were $1.9 million for the fiscal quarter ended March 31, 2011 as compared to $2.0 million for the corresponding quarter ended March 31, 2010. Revenues from service and repair fees were $2.8 million for the fiscal quarter ended March 31, 2011 and the fiscal quarter ended March 31, 2010. FONAR’s principal product is the UPRIGHT® Multi-Position™ MRI.
Significantly, revenues from the management and other fees segment (management of the ten FONAR UPRIGHT® Multi-Position™ MRI diagnostic imaging centers segment) increased 46% from $2.7 million for the three months ended March 31, 2010, to $4.0 million for the three-month period ended March 31, 2011.
Balance Sheet Items
As of March 31, 2011 total current assets were $17.0 million, total assets were $26.4 million, total current liabilities were $24.3 million, and total long-term liabilities were $2.8 million.
As of March 31, 2011, total cash and cash equivalents and marketable securities were $2.4 million as compared to $1.3 million as of June 30, 2010.
As of March 31, 2011, the total stockholder’s deficiency was $781,000 as compared to a total stockholder’s deficiency of $5.8 million as of June 30, 2010, an improvement of $5.0 million.
NASDAQ Continued Listing
On October 14, 2010, the Company received a notice of non-compliance from The NASDAQ Stock Market, LLC, based upon NASDAQ Marketplace Listing Rule 5550(b)(1) which requires a minimum stockholders’ equity requirement of $2.5 million for continued listing on The NASDAQ Capital Market. A hearing was held on March 17, 2011, and subsequently the NASDAQ Hearings Panel granted the Company an extension until May 11, 2011 to complete a newly proposed financing and regain compliance with the stockholders’ equity requirement of $2.5 million.
The Company commenced a private placement of equity and succeeded in raising $6 million by May 2, 2011, which amount was more than sufficient to eliminate the stockholders’ deficiency of $781,000 as of March 31, 2011 and achieve compliance with the stockholders’ equity requirement of $2.5 million.
Significant Highlight
As of March 31, 2011, FONAR has now installed 150 FONAR UPRIGHT® Multi-Position™ MRIs. The 150th was installed in Hamburg, Germany during the recent quarter. It is the fourth UPRIGHT® MRI installed in Germany by Medserena, AG. At the time of the sale, Matthias Schulz, CEO of Medserena, said, “The first three UPRIGHT® Multi-Position™ MRI centers have had great success. With physicians all over Germany asking about this technology, it has become imperative for us to expand and install a fourth FONAR UPRIGHT® MRI scanner. This is in spite of an intensely active MRI market in Germany, where there are already many conventional lie-down MRIs installed.
“The large number of requests coming from our physicians in Germany,” said Mr. Schulz, “are arising because of the special medical need for FONAR’s unique technology. “The German people tend to recognize the potential of any new technology quickly. We have been very successful in Germany with the FONAR UPRIGHT® MRI and its power for scanning patients in multiple UPRIGHT® and recumbent positions because our physicians have quickly appreciated the benefits of this new technology and want their patients to have access to those benefits as soon as possible.
“With 50% of MRIs being of the spine, it is self-evident that to make a satisfactory imaging diagnosis of the spine, the spine needs to be supporting its normal weight load which the conventional lie-down MRI does not permit. We firmly believe that the FONAR UPRIGHT® Multi-Position™ MRI will become a standard for MRI diagnostics in Europe, especially in evaluating the spine.”
Management Commentary
“We are proud that we have now accomplished one year of solid profitability,” said Raymond Damadian, M.D., president and chairman of FONAR Corporation. “Our total net income for these last four quarters was approximately $3 million and is among the most profitable one year periods in the Company’s history.”
“At this time, all of the segments of our business are strong. Significantly, the management of the ten UPRIGHT® Multi-Position™ MRI centers has given us steady profitability that we can rely on regardless of the state of our economy. A major reason for our profitability has been the cost-control measures that we have taken and which continue to yield results. We are pleased with our accomplishments and plan to continue capitalizing on building a strong business and increasing shareholder value,” said Dr. Damadian.
About FONAR
FONAR was incorporated in 1978, making it the first, oldest and most experienced MRI company in the industry. FONAR introduced the world’s first commercial MRI in 1980, and went public in 1981. Since its inception, nearly 300 recumbent-OPEN MRIs and 150 UPRIGHT® Multi-Position™ MRI scanners worldwide have been installed. FONAR’s stellar product line includes the Upright™ MRI (also known as the Stand-Up™ MRI), the only whole-body MRI that performs Position™ imaging (pMRI™) and scans patients in numerous weight-bearing positions, i.e. standing, sitting, in flexion and extension, as well as the conventional lie-down position. The FONAR UPRIGHT® MRI often sees the patient’s problem that other scanners cannot because they are lie-down only. The patient-friendly UPRIGHT® MRI has a near zero claustrophobic rejection rate by patients. As a FONAR customer states, “If the patient is claustrophobic in this scanner, they’ll be claustrophobic in my parking lot.” Approximately 85% of patients are scanned sitting while they watch a 42″ flat screen TV. FONAR is headquartered on Long Island, New York.
For investor and other information visit: www.fonar.com
UPRIGHT® and STAND-UP® are registered trademarks and The Inventor of MR Scanning™, Multi-Position™, pMRI™, Dynamic™, Full Range of Motion™, True Flow™, The Proof is in the Picture™, Spondylography™, Spondylometry™ Landscape™, CSP™ and Upright Radiology™ are trademarks of FONAR Corporation.
This release may include forward-looking statements from the company that may or may not materialize. Additional information on factors that could potentially affect the company’s financial results may be found in the company’s filings with the Securities and Exchange Commission.
FONAR CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(000's OMITTED)
ASSETS March 31, June 30,
2011 2010
(UNAUDITED)
Current Assets: --------- ---------
Cash and cash equivalents $ 2,354 $ 1,299
Marketable securities 33 28
Accounts receivable - net 6,577 4,821
Accounts receivable - related parties - net 30 -
Medical receivables - net 2 25
Management fee receivable - net 3,033 2,569
Management fee receivable - related medical
practices - net 1,755 1,922
Costs and estimated earnings in excess of
billings on uncompleted contracts 601 277
Inventories 2,192 2,826
Advances and notes to related medical
practices - net - 83
Current portion of notes receivable 190 272
Prepaid expenses and other current assets 246 553
--------- ---------
Total Current Assets 17,013 14,675
--------- ---------
Property and equipment - net 4,034 2,109
Notes receivable - net 229 -
Management agreement - net 504 -
Other intangible assets - net 4,009 4,291
Other assets 565 554
--------- ---------
Total Assets $ 26,354 $ 21,629
========= =========
FONAR CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(000's OMITTED)
LIABILITIES AND STOCKHOLDERS' DEFICIENCY March 31, June 30,
2011 2010
(UNAUDITED)
Current Liabilities: --------- ---------
Current portion of long-term debt and capital
leases $ 2,148 $ 579
Current portion of long-term debt-related party - 88
Accounts payable 2,356 3,192
Other current liabilities 8,151 8,065
Unearned revenue on service contracts 6,748 5,220
Unearned revenue on service contracts -
related parties 27 -
Customer advances 4,693 4,813
Billings in excess of costs and estimated
earnings on uncompleted contracts 188 2,743
--------- ---------
Total Current Liabilities 24,311 24,700
Long-Term Liabilities:
Accounts payable 115 63
Due to related medical practices 230 528
Long-term debt and capital leases, less current
portion 1,982 1,567
Long-term debt less current portion-related party - 72
Other liabilities 497 475
--------- ---------
Total Long-Term Liabilities 2,824 2,705
--------- ---------
Total Liabilities 27,135 27,405
--------- ---------
FONAR CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(000's OMITTED, except share data)
March 31, June 30,
LIABILITIES AND STOCKHOLDERS' DEFICIENCY 2011 2010
(continued) (UNAUDITED)
--------- ---------
STOCKHOLDERS' DEFICIENCY:
Class A non-voting preferred stock $.0001 par value;
453,000 and 1,600,000 shares authorized at
March 31, 2011 and June 30, 2010, respectively;
313,451 issued and outstanding at March 31, 2011
and June 30, 2010 - -
Preferred stock $.001 par value; 567,000 and
2,000,000 shares authorized at March 31, 2011
and June 30, 2010, respectively;
issued and outstanding - none - -
Common Stock $.0001 par value; 8,500,000 and
30,000,000 shares authorized at March 31, 2011
and June 30, 2010, respectively; 5,480,958 and
4,985,850 issued at March 31, 2011 and
June 30, 2010, respectively; 5,469,315 and
4,974,207 outstanding at March 31, 2011
and June 30, 2010, respectively 1 1
Class B Common Stock $.0001 par value; 227,000 and
800,000 shares authorized at March 31, 2011 and
June 30, 2010, respectively; (10 votes per share),
158 issued and outstanding at March 31, 2011 and
June 30, 2010 - -
Class C Common Stock $.0001 par value; 567,000 and
2,000,000 shares authorized at March 31, 2011 and
June 30, 2010, respectively; (25 votes per share),
382,513 issued and outstanding at March 31, 2011
and June 30, 2010 - -
Paid-in capital in excess of par value 173,122 172,379
Accumulated other comprehensive loss (15) (19)
Accumulated deficit (174,339) (177,271)
Notes receivable from employee stockholders (117) (191)
Treasury stock, at cost - 11,643 shares of common
stock at March 31, 2011 and June 30, 2010 (675) (675)
Non controlling interests 1,242 -
--------- ---------
Total Stockholders' Deficiency (781) (5,776)
--------- ---------
Total Liabilities and Stockholders' Deficiency $ 26,354 $ 21,629
========= =========
FONAR CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
(000's OMITTED, except per share data)
FOR THE THREE MONTHS ENDED
MARCH 31,
---------------------
2011 2010
REVENUES --------- ---------
Product sales - net $ 1,855 $ 1,955
Service and repair fees - net 2,769 2,778
Service and repair fees - related parties - net 55 55
Management and other fees - net 2,726 1,738
Management and other fees - related medical
practices - net 1,249 988
--------- ---------
Total Revenues - Net 8,654 7,514
--------- ---------
COSTS AND EXPENSES
Costs related to product sales 1,392 1,353
Costs related to service and repair fees 792 566
Costs related to service and repair
fees - related parties 16 11
Costs related to management and other fees 1,768 1,338
Costs related to management and other
fees - related medical practices 616 703
Research and development 453 528
Selling, general and administrative 2,064 2,708
Provision for bad debts 175 282
--------- ---------
Total Costs and Expenses 7,276 7,489
--------- ---------
Income From Operations 1,378 25
Interest Expense (128) (66)
Interest Expense - Related Party - (21)
Investment Income 64 51
Interest Income - Related Party - 2
Other (Expense) Income (61) 1
--------- ---------
Income (Loss) Before Non Controlling Interests 1,253 (8)
Net Income - Non Controlling Interests (69) -
--------- ---------
NET INCOME (LOSS) - Controlling Interests $ 1,184 $ (8)
========= =========
Net Income (Loss) Available to Common Stockholders $ 1,099 $ (8)
========= =========
Net Income Available to Class C Common Stockholders $ 21 $ N/A
========= =========
Basic Net Income (Loss) Per Common Share $ 0.21 $ (0.00)
========= =========
Diluted Net Income (Loss) Per Common Share $ 0.20 $ (0.00)
========= =========
Basic and Diluted Income Per Share-Common C $ 0.05 N/A
========= =========
Weighted Average Basic Shares Outstanding 5,345,349 4,929,752
========= =========
Weighted Average Diluted Shares Outstanding 5,472,853 4,929,752
========= =========
FONAR CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
(000's OMITTED, except per share data)
FOR THE NINE MONTHS ENDED
MARCH 31,
---------------------
2011 2010
REVENUES --------- ---------
Product sales - net $ 6,303 $ 6,479
Service and repair fees - net 8,111 8,163
Service and repair fees - related parties - net 165 165
Management and other fees - net 7,195 5,212
Management and other fees - related medical
practices - net 3,584 2,613
License fees and royalties - 585
--------- ---------
Total Revenues - Net 25,358 23,217
--------- ---------
COSTS AND EXPENSES
Costs related to product sales 5,265 5,289
Costs related to service and repair fees 2,158 2,485
Costs related to service and repair
fees - related parties 44 50
Costs related to management and other fees 4,789 3,989
Costs related to management and other
fees - related medical practices 1,988 2,208
Research and development 1,060 2,159
Selling, general and administrative 6,192 9,042
Provision for bad debts 606 659
--------- ---------
Total Costs and Expenses 22,102 25,881
--------- ---------
Income (Loss) From Operations 3,256 (2,664)
Interest Expense (359) (235)
Interest Expense - Related Party (4) (40)
Investment Income 160 203
Interest Income - Related Party 1 9
Other (Expense) Income (53) 35
Loss on Note Receivable - (350)
--------- ---------
Net Income (Loss) Before Non Controlling Interests 3,001 (3,042)
--------- ---------
Net Income - Non Controlling Interests (69) -
NET INCOME (LOSS) - Controlling Interests $ 2,932 $ (3,042)
========= =========
Net Income (Loss) Available to Common Stockholders $ 2,720 $ (3,042)
========= =========
Net Income Available to Class C Common Stockholders $ 53 $ N/A
========= =========
Basic Net Income (Loss) Per Common Share $ 0.53 $ (0.62)
========= =========
Diluted Net Income (Loss) Per Common Share $ 0.51 $ (0.62)
========= =========
Basic and Diluted Income Per Share-Common C $ 0.14 N/A
========= =========
Weighted Average Basic Shares Outstanding 5,169,253 4,917,990
========= =========
Weighted Average Diluted Shares Outstanding 5,296,757 4,917,990
========= =========
Image Available: http://www2.marketwire.com/mw/frame_mw?attachid=1605244
Contact:
Daniel Culver
FONAR Corporation
Tel: 631-694-2929
Fax: 631-390-1709
http://www.fonar.com
IRVINE, Calif., May 10, 2011 /PRNewswire/ — PRO-DEX, INC. (Nasdaq: PDEX) today announced financial results for its fiscal third quarter and nine months ended March 31, 2011.
Sales for the quarter ended March 31, 2011 were $7.6 million, 24% higher than sales of $6.2 million for the corresponding quarter in 2010. For the nine months ended March 31, 2011, sales were $19.6 million, 12% higher than sales of $17.5 million for the corresponding period in 2010. These results for both the quarter and the nine-month periods were due primarily to increases in sales of the Company’s medical device products to its two largest customers, with the nine-month period also benefitting from growth in sales of the Company’s motion control products.
Operating income was $1.1 million for the quarter, a 177% improvement from $409,000 for the corresponding 2010 period. For the nine months ended March 31, 2011, operating income improved 171% to $2.1 million from $778,000 for the corresponding nine-month period in 2010.
Net income for the 2011 quarter was $868,000, or $0.26 per fully-diluted share, which represents a 399% increase from net income of $174,000, or $0.05 per fully-diluted share, for the corresponding 2010 quarter. For the nine months ended March 31, 2011, net income was $1.6 million, an increase of 72% from net income of $937,000 for the corresponding period in 2010.
Gross profit for the quarter ended March 31, 2011 increased to $2.9 million, a 38% gross profit margin, compared to gross profit of $2.3 million, a 37% gross profit margin, for the year-ago period. For the nine months ended March 31, 2011, gross profit was $7.5 million, a 38% gross profit margin, compared to gross profit and margin of $6.2 million and 35%, respectively, for the corresponding nine-month period in 2010. The increase in gross profit as a percentage of sales during both periods was due to a change in mix toward sales of medical device and motion control products at relatively higher margins, and to cost reductions.
Mark Murphy, the Company’s President and Chief Executive Officer, commented, “We are very pleased with the results through the first nine months of fiscal 2011. Sales and profitability for the third quarter continue to be strong, however looking forward, we remain committed to taking the necessary steps to diversify our customer base as these results may not represent the future buying pattern of our largest customer.”
The Company also announced that Mr. Paul Rudzinski has joined the Company as Vice President of Sales. Mr. Rudzinski brings 29 years of sales and sales leadership experience, most of which has been in the medical device space. Mr. Murphy commented “We are delighted to have Paul join us and believe that the combination of his experience, leadership, and industry relationships will connect the substantial capabilities of Pro-Dex with the right customers.”
Commenting on the Company’s cash generation in the third quarter, Mr. Murphy concluded, “During this nine-month period of increased sales which was accompanied by higher levels of accounts receivable and inventory, Pro-Dex nonetheless generated $1.8 million of cash from operations.”
Teleconference Information:
Investors and analysts are invited to listen to a broadcast review of the Company’s fiscal 2011 third quarter financial results today at 9:30 a.m. Eastern Time (6:30 a.m. Pacific Time) that may be accessed by visiting the Company’s website at www.pro-dex.com. The conference call may also be accessed at www.InvestorCalendar.com. Investors and analysts who would like to participate in the conference call may do so via telephone at (877) 407-8033, or at (201) 689-8033 if calling from outside the U.S.
For those who cannot access the live broadcast, a replay will be available from two hours after the completion of the call until midnight (Eastern Time) on May 21, 2011 by calling (877) 660-6853, or (201) 612-7415 if calling from outside the U.S., and then entering account number 286 and conference I.D. number 372315. An online archive of the broadcast will be available on the Company’s website www.pro-dex.com for a period of 365 days.
Pro-Dex, Inc., with operations in California, Oregon and Nevada, specializes in bringing speed to market in the development and manufacture of technology-based solutions that incorporate miniature rotary drive systems, embedded motion control and fractional horsepower DC motors, serving the medical, dental, semi-conductor, scientific research and aerospace markets. Pro-Dex’s products are found in hospitals, dental offices, medical engineering labs, commercial and military aircraft, scientific research facilities and high tech manufacturing operations around the world. For more information, visit the Company’s website at www.pro-dex.com.
Statements herein concerning the Company’s plans, growth and strategies may include ‘forward-looking statements’ within the context of the federal securities laws. Statements regarding the Company’s future events, developments and future performance, as well as management’s expectations, beliefs, plans, estimates or projections relating to the future, are forward-looking statements within the meaning of these laws. The Company’s actual results may differ materially from those suggested as a result of various factors. Interested parties should refer to the disclosure concerning the operational and business concerns of the Company set forth in the Company’s filings with the Securities and Exchange Commission.
|
(tables follow)
PRO-DEX, INC. and SUBSIDIARIES
|
|
|
CONDENSED CONSOLIDATED BALANCE SHEETS
|
|
|
(unaudited)
|
|
|
|
|
|
|
March 31, 2011
|
June 30, 2010
|
|
|
ASSETS
|
|
|
|
|
Current assets:
|
|
|
|
|
Cash and cash equivalents
|
$ 3,778,000
|
$ 3,794,000
|
|
|
Accounts receivable, net of allowance for doubtful accounts
|
|
|
|
|
of $8,000 at March 31, 2011 and $25,000 at June 30, 2010
|
3,090,000
|
2,682,000
|
|
|
Other current receivables
|
46,000
|
22,000
|
|
|
Inventories
|
3,417,000
|
3,228,000
|
|
|
Prepaid expenses
|
230,000
|
174,000
|
|
|
Deferred income taxes
|
209,000
|
209,000
|
|
|
Total current assets
|
10,770,000
|
10,109,000
|
|
|
|
|
|
|
Property, plant, equipment and leasehold improvements, net
|
3,766,000
|
4,092,000
|
|
|
Other assets
|
60,000
|
78,000
|
|
|
Total assets
|
$ 14,596,000
|
$ 14,279,000
|
|
|
LIABILITIES AND SHAREHOLDERS’ EQUITY
|
|
|
|
|
Current liabilities:
|
|
|
|
|
Accounts payable
|
$ 1,477,000
|
$ 1,279,000
|
|
|
Accrued expenses
|
1,895,000
|
1,947,000
|
|
|
Income taxes payable
|
237,000
|
79,000
|
|
|
Current portion of bank term loan
|
357,000
|
400,000
|
|
|
Current portion of real estate loan
|
–
|
35,000
|
|
|
Total current liabilities
|
3,966,000
|
3,740,000
|
|
|
|
|
|
|
Long-term liabilities:
|
|
|
|
|
Bank term loan
|
863,000
|
967,000
|
|
|
Real estate loan
|
–
|
1,493,000
|
|
|
Deferred income taxes
|
209,000
|
209,000
|
|
|
Deferred rent
|
277,000
|
255,000
|
|
|
Total long-term liabilities
|
1,349,000
|
2,924,000
|
|
|
|
|
|
|
Total liabilities
|
5,315,000
|
6,664,000
|
|
|
Commitments and contingencies
|
|
|
|
|
Shareholders’ equity:
|
|
|
|
|
Common shares; no par value; 50,000,000 shares authorized;
|
|
|
|
|
3,272,350 shares issued and outstanding at March 31, 2011
|
|
|
|
|
3,251,850 shares issued and outstanding at June 30, 2010
|
16,730,000
|
16,675,000
|
|
|
Accumulated deficit
|
(7,449,000)
|
(9,060,000)
|
|
|
|
|
|
|
Total shareholders’ equity
|
9,281,000
|
7,615,000
|
|
|
|
|
|
|
Total liabilities and shareholders’ equity
|
$ 14,596,000
|
$ 14,279,000
|
|
|
|
|
|
PRO-DEX, INC. and SUBSIDIARIES
|
|
|
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
|
|
|
(unaudited)
|
|
|
For The Three Months Ended March 31,
|
|
|
2011
|
2010
|
|
|
Net sales
|
$ 7,626,000
|
$ 6,161,000
|
|
|
|
|
|
|
Cost of sales
|
4,749,000
|
3,869,000
|
|
|
Gross profit
|
2,877,000
|
2,292,000
|
|
|
|
|
|
|
Operating expenses:
|
|
|
|
|
Selling expenses
|
422,000
|
383,000
|
|
|
General and administrative expenses
|
729,000
|
886,000
|
|
|
Research and development costs
|
593,000
|
614,000
|
|
|
Total operating expenses
|
1,744,000
|
1,883,000
|
|
|
|
|
|
|
Income from operations
|
1,133,000
|
409,000
|
|
|
|
|
|
|
Other income (expense):
|
|
|
|
|
Royalty income
|
–
|
40,000
|
|
|
Interest expense
|
(55,000)
|
(50,000)
|
|
|
Total other income (expense)
|
(55,000)
|
(10,000)
|
|
|
|
|
|
|
Income before provision for income taxes
|
1,078,000
|
399,000
|
|
|
|
|
|
|
Provision for income taxes
|
210,000
|
225,000
|
|
|
Net income
|
$ 868,000
|
$ 174,000
|
|
|
|
|
|
|
|
|
|
|
Net income per share:
|
|
|
|
|
Basic
|
$ 0.27
|
$ 0.05
|
|
|
Diluted
|
$ 0.26
|
$ 0.05
|
|
|
|
|
|
|
Weighted average shares outstanding – basic
|
3,272,350
|
3,234,538
|
|
|
Weighted average shares outstanding – diluted
|
3,289,324
|
3,240,564
|
|
|
|
|
|
PRO-DEX, INC. and SUBSIDIARIES
|
|
|
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
|
|
|
(unaudited)
|
|
|
For the Nine Months Ended March 31,
|
|
|
2011
|
2010
|
|
|
|
|
|
|
Net sales
|
$ 19,612,000
|
$ 17,490,000
|
|
|
|
|
|
|
Cost of sales
|
12,127,000
|
11,324,000
|
|
|
Gross profit
|
7,485,000
|
6,166,000
|
|
|
|
|
|
|
Operating expenses:
|
|
|
|
|
Selling expense
|
1,197,000
|
1,025,000
|
|
|
General and administrative expenses
|
2,389,000
|
2,412,000
|
|
|
Impairment of intangible asset
|
–
|
140,000
|
|
|
Research and development costs
|
1,789,000
|
1,811,000
|
|
|
Total operating expenses
|
5,375,000
|
5,388,000
|
|
|
|
|
|
|
Income from operations
|
2,110,000
|
778,000
|
|
|
|
|
|
|
Other income (expense):
|
|
|
|
|
Royalty income
|
–
|
44,000
|
|
|
Interest expense
|
(135,000)
|
(154,000)
|
|
|
Total other income (expense)
|
(135,000)
|
(110,000)
|
|
|
|
|
|
|
Income before provision (benefit) for income taxes
|
1,975,000
|
668,000
|
|
|
|
|
|
|
Provision (benefit) for income taxes
|
363,000
|
(269,000)
|
|
|
|
|
|
|
Net income
|
$ 1,612,000
|
$ 937,000
|
|
|
|
|
|
|
Net income per share:
|
|
|
|
|
Basic
|
$ 0.49
|
$ 0.29
|
|
|
Diluted
|
$ 0.49
|
$ 0.29
|
|
|
|
|
|
|
Weighted average shares outstanding – basic
|
3,262,474
|
3,226,716
|
|
|
Weighted average shares outstanding – diluted
|
3,270,549
|
3,233,046
|
|
|
|
|
|
PRO-DEX, INC. and SUBSIDIARIES
|
|
|
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
|
|
|
(unaudited)
|
|
|
For The Nine Months Ended March 31,
|
|
|
2011
|
2010
|
|
|
Cash flows from operating activities:
|
|
|
|
|
Net income
|
$ 1,612,000
|
$ 937,000
|
|
|
Adjustments to reconcile net income to net cash provided by operating activities:
|
|
|
|
|
Depreciation and amortization
|
507,000
|
546,000
|
|
|
Impairment of intangible asset
|
–
|
140,000
|
|
|
(Decrease) in allowance for doubtful accounts
|
(17,000)
|
(1,000)
|
|
|
Stock based compensation
|
28,000
|
96,000
|
|
|
Increase in deferred tax allowance
|
–
|
118,000
|
|
|
Changes in:
|
|
|
|
|
(Increase) in accounts receivable and other current receivables
|
(415,000)
|
(245,000)
|
|
|
(Increase) decrease in inventories
|
(188,000)
|
509,000
|
|
|
(Increase) in prepaid expenses
|
(56,000)
|
(115,000)
|
|
|
Decrease in other assets
|
17,000
|
–
|
|
|
Increase in accounts payable and accrued expenses
|
166,000
|
712,000
|
|
|
Increase (decrease) in income taxes payable
|
158,000
|
(36,000)
|
|
|
Net cash provided by operating activities
|
1,812,000
|
2,661,000
|
|
|
|
|
|
|
Cash flows from investing activities:
|
|
|
|
|
Purchases of equipment and leasehold improvements
|
(181,000)
|
(109,000)
|
|
|
|
|
|
|
Net cash (used in) investing activities
|
(181,000)
|
(109,000)
|
|
|
|
|
|
|
Cash flows from financing activities:
|
|
|
|
|
Principal payments on bank term loan
|
(296,000)
|
(300,000)
|
|
|
Net proceeds from bank term loan refinancing
|
150,000
|
–
|
|
|
Principal payments on real estate loan
|
(1,528,000)
|
(24,000)
|
|
|
Proceeds from exercise of stock options
|
27,000
|
–
|
|
|
|
|
|
|
Net cash (used in) financing activities
|
(1,647,000)
|
(324,000)
|
|
|
|
|
|
|
Net (decrease) increase in cash and cash equivalents
|
(16,000)
|
2,228,000
|
|
|
Cash and cash equivalents, beginning of period
|
3,794,000
|
1,124,000
|
|
|
|
|
|
|
Cash and cash equivalents, end of period
|
$ 3,778,000
|
$ 3,352,000
|
|
|
|
|
|
|
Supplemental Information
|
|
|
|
Cash payments for interest
|
$ 151,000
|
$ 157,000
|
|
|
|
|
|
|
Cash payments for income taxes
|
$ 205,000
|
$ 87,000
|
|
|
|
|
|
|
|
GONGYI, China, May 6, 2011 /PRNewswire-Asia-FirstCall/ — China GengSheng Minerals, Inc. (AMEX: CHGS), a leading China-based high-tech industrial materials manufacturer producing heat resistant, energy efficient materials for a variety of industrial applications, today announced that it will release first quarter 2011 financial results on Monday, May 16, 2011 before the open of trading in the U.S.
Management will hold a conference call on Monday, May 16, 2011 at 8:00 a.m. ET (8:00 p.m. Beijing time) to discuss the first quarter results and other recent developments. To participate in the call, please dial (877) 407-9205 in the U.S. and Canada, or (201) 689-8054 internationally.
For those unable to participate, an audio replay of the call will be available beginning approximately one hour after the conclusion of the live call through May 23, 2011. The audio replay can be accessed by dialing (877) 660-6853 in the U.S. and Canada, or (201) 612-7415 internationally, and entering account number 286 and conference ID 372447.
The call will also be available as a live, listen-only webcast under the “Events Calendar” section of the Company’s website at http://www.gengsheng.com/english/affair.aspx. Following the live webcast, an online archive will be available for one year.
About China GengSheng Minerals, Inc.
China GengSheng Minerals, Inc. (“GengSheng”) develops, manufactures and markets a broad range of high-tech industrial material products, including monolithic refractories, industrial ceramics, fracture proppants and fine precision abrasives. A market leader offering customized solutions, GengSheng sells its products primarily to the iron and steel industry as heat-resistant components for steel-making furnaces, industrial kilns and other high-temperature vessels to guarantee and improve the productivity of those expensive pieces of equipment while reducing their consumption of energy. Founded in 1986 and based in China’s Henan province, GengSheng currently has over 200 customers in the iron, steel, oil, glass, cement, aluminum and chemical businesses located in China and other countries. GengSheng conducts business through GengSheng International Corporation, a British Virgin Islands company, and its Chinese subsidiaries, which are Henan GengSheng Refractories Co., Ltd., Zhengzhou Duesail Fracture Proppant Co., Ltd., Henan GengSheng Micronized Powder Materials Co., Ltd, Guizhou SouthEast Prefecture Co., Ltd., GengSheng New Materials Co., Ltd, and Henan GengSheng High Temperature Materials Co., Ltd.
For more information about the Company, please visit http://www.gengsheng.com.
To be added to the Company’s email distribution for future press releases, please send your request to gengsheng@tpg-ir.com.
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Contact:
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The Piacente Group, Inc.
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Investor Relations
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Brandi Floberg or Lee Roth
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(212) 481-2050
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gengsheng@tpg-ir.com
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China GengSheng Minerals, Inc.
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Ms. Wendy Sun
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Finance Manager and Investor Relations
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+86-159-3870-8666
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gswendy@gengsheng.com
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Mr. Shuai Zhang
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Investor Relations
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gszs@gengsheng.com
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BEIJING, May 6, 2011 (GLOBE NEWSWIRE) — SinoTech Energy Limited (“Sinotech” or the “Company”) (Nasdaq:CTE), a fast-growing provider of enhanced oil recovery (“EOR”) services in China, today released updated outlook for fiscal year 2011 and announced that it will release its unaudited financial results for the second quarter ended March 31, 2011, on May 19, 2011.
Based on current operating and business conditions, the Company expects to report total sales in the range of US$100 million to US$105 million in fiscal year 2011, compared to the previously announced range of US$90 million to US$95 million.
Mr. Boxun Zhang, chief financial officer of SinoTech, commented, “We are very pleased with our rapid growth, which is driven by the expansion of our LHD fleet and MDF service coverage as well as our team’s effective execution. We believe China’s pressing need to enhance oil production combined with our steadily expanding capacity to provide reliable EOR services will lead to sustainable growth for the Company in the coming years.”
The Company has scheduled a conference call to discuss its second quarter results at 8:30 AM Eastern Time (ET) (8:30PM Beijing/Hong Kong time) on May 19, 2011.
Dial-in details for the live conference call are as follows:
| — International: |
+1-617-614-3529 |
| — U.S.: |
800-561-2813 |
| — South China Toll Free (Netcom): |
10-800-852-1490 |
| — North China Toll Free (Telecom): |
10-800-152-1490 |
| — South China Toll Free (Telecom): |
10-800-130-0399 |
| — China: |
400-8811-629/ 400-8811-630 |
| — Hong Kong Toll Free: |
800-9638-44 |
|
|
| Participant Passcode: |
44749436 |
A replay of the conference call will also be available until May 26, 2011 by dialing:
| — International: |
+1-617-801-6888 |
| — U.S.: |
888-286-8010 |
|
|
| Passcode: |
65200120 |
In addition, a live and archived webcast of the conference call will be available on Sinotech’s website at http://ir.sinotechenergy.com/events.cfm.
About SinoTech Energy Limited
SinoTech Energy Limited (“Sinotech” or the “Company”) (Nasdaq:CTE) is a fast-growing provider of enhanced oil recovery (“EOR”) services in China. SinoTech provides innovative EOR services to major oil companies in China using leading edge technologies, including certain patented lateral hydraulic drilling (“LHD”) technologies, which the company has an exclusive right to use in China, and a molecular deposition film technology, for which the company holds a PRC patent. SinoTech also provides technical services to coalbed methane customers using the LHD technology.
For more information, please visit http://ir.sinotechenergy.com.
CONTACT: For investor and media inquiries:
Ms. Rebecca Guo
SinoTech Energy Limited, Beijing
Tel: + 86-10-8712-5555
Email: rebecca.guo@sinotechenergy.com
Ms. Yue Yu
Brunswick Group LLP
Tel: +86-10-6566-2256
Email: sinotech@brunswickgroup.com
PROVO, Utah, May 6, 2011 (GLOBE NEWSWIRE) — Nature’s Sunshine Products, Inc. (Nasdaq:NATR), a leading natural health and wellness company, today reported consolidated financial results for the first quarter ended March 31, 2011.
For the First Quarter of 2011:
- Net sales were $92.8 million, compared with $86.8 million in the same quarter a year ago, an increase of 7.0 percent.
- Operating income from continuing operations was $7.6 million, compared with $0.6 million in the same quarter a year ago, an increase of 1,237.0%.
- EBITDA, defined here as net income before taxes, depreciation and amortization, other income and adjusted to include share-based compensation expense, was $8.8 million, compared with $1.8 million in the same quarter a year ago, an increase of 398.7 percent.
- Net income from continuing operations was $6.6 million, compared with net income of $4.8 million in the same quarter a year ago, an increase of 38.8 percent.
- Basic and diluted net income per share from continuing operations was $0.43, compared with earnings per share of $0.31 for the same quarter a year ago.
- As of March 31, 2011, shareholders’ equity was $75.6 million, compared to $68.4 million on December 31, 2010, an increase of 10.6 percent.
- As of March 31, 2011, active Managers worldwide were 30,300, an increase of 7.1 percent from the end of the prior quarter, while active Distributors worldwide were 696,400, an increase of 1.7 percent from the end of the prior quarter.
Additional Financial Information:
Certain events affected the comparability of 2011 versus 2010 quarterly results, as outlined below. For a more detailed comparison of 2011 versus 2010 results, refer to Management’s Discussion and Analysis of Financial Condition and Results of Operations included in the Company’s Quarterly Report on Form 10-Q for the three months ended March 31, 2011.
- Other income in the prior year quarter benefited from a $3.7 million foreign exchange gain related to the implementation of highly-inflationary accounting for Venezuela and the devaluation of the Venezuelan bolivar.
- The effective income tax rate was 16.0% compared with a tax benefit of 37.0% in the same quarter a year ago. The change in the effective tax rate was primarily due to the Company’s increase in operating income for the current quarter compared to the same quarter a year ago. The effective tax rates for both periods were reduced by decreases in tax liabilities associated with uncertain tax positions due to the expiration of the statue of limitations of $1.2 million and $1.4 million, respectively.
NSP United States Segment Results for the First Quarter:
- Net sales were $35.6 million, compared with $36.7 million in the same quarter a year ago, a decrease of 2.8 percent. Shifting the timing of our national convention from the fall of 2010 to the spring of 2011 negatively affected Manager retention and Distributor recruiting efforts during the prior year and the current quarter. The prior year quarter also included heavy Manager and Distributor purchases in advance of price increases the following quarter. Net sales revenue also decreased compared to the same period in the prior year due to changes to some of our promotional programs.
- Operating income was $3.8 million, compared with $0.5 million in the same quarter a year ago, an increase of 717.0 percent. The increase in operating income is primarily the result of significant cost reductions in our selling, general and administrative expenses.
NSP International Segment Results for the First Quarter:
- Net sales were $36.5 million, compared with $36.2 million in the same quarter a year ago, an increase of 1.0 percent. In local currencies, net sales decreased by 0.3 percent compared to the same quarter a year ago. The decrease in local currency sales is due to lower sales in our Dominican Republic, Japan and Mexico markets, mostly offset by higher sales in our Russian markets and positive currency fluctuations.
- Operating income was $2.1 million, compared with $0.8 million in the same quarter a year ago, an increase of 149.0 percent. This increase was the result of cost reductions, as well as the impact of prior year value-added tax reserve charges in our Mexico business.
Synergy Worldwide Results for the First Quarter:
- Net sales were $20.7 million, compared with $13.9 million in the same quarter a year ago, an increase of 48.1 percent. In local currencies, net sales increased 42.8 percent compared to the same quarter a year ago. The increase in net sales was primarily due to growth in our United States, Korean and European markets, and the opening of our Vietnam market.
- Operating income was $1.8 million, compared with an operating loss of $0.7 million for the same quarter in the prior year, an increase of 353.0 percent. This increase was primarily due to improvements in sales within its European, U.S, and Korean subsidiaries as well as cost reductions.
Non-GAAP Financial Measures
The Company has included information concerning EBITDA because management utilizes this information in the evaluation of its operations and believes that this measure is a useful indicator of the Company’s ability to fund its business. EBITDA has not been prepared in accordance with generally accepted accounting principles (GAAP). This non-GAAP financial measure should not be considered as an alternative to, or more meaningful than, net income as an indicator of the Company’s operating performance. Further, this non-GAAP financial measure, as presented by the Company, may not be comparable to similarly titled measures reported by other companies. The Company has included a reconciliation of EBITDA to reported earnings under GAAP in the attached financial tables.
About Nature’s Sunshine Products
Nature’s Sunshine Products (Nasdaq:NATR), a leading natural health and wellness company, markets and distributes nutritional, herbal, weight management, energy, and other complementary products through a global direct sales force of over 600,000 independent distributors in more than 40 countries. Nature’s Sunshine manufactures its products through its own state-of-the-art facilities to ensure its products continue to set the standard for the highest quality, safety and efficacy on the market today. The Company also supports health and wellness for children around the world through its partnership with the Little Heroes Foundation. Additional information about the Company can be obtained at its website, www.natr.com.
Cautionary Statement Regarding Forward-Looking Statements
In addition to historical information, this release contains forward-looking statements. Nature’s Sunshine may, from time to time, make written or oral forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements encompass Nature’s Sunshine’s beliefs, expectations, hopes, or intentions regarding future events. Words such as “expects,” “intends,” “believes,” “anticipates,” “should,” “likely,” and similar expressions identify forward-looking statements. All forward-looking statements included in this release are made as of the date hereof and are based on information available to the Company as of such date. Nature’s Sunshine assumes no obligation to update any forward-looking statement. Actual results will vary, and may vary materially, from those anticipated, estimated, projected or expected for a number of reasons, including, among others: further reviews of the Company’s financial statements by the Company and its Audit Committee; modification of the Company’s accounting practices; foreign business risks; industry cyclicality; fluctuations in customer demand and order pattern; changes in pricing and general economic conditions; as well as other risks detailed in the Company’s previous filings with the SEC.
|
| NATURE’S SUNSHINE PRODUCTS, INC. AND SUBSIDIARIES |
| CONDENSED CONSOLIDATED BALANCE SHEETS |
| (Amounts in thousands) |
| (Unaudited) |
|
|
March 31,
2011 |
December 31,
2010 |
| Assets |
|
|
| Current Assets: |
|
|
| Cash and cash equivalents |
$ 55,418 |
$ 47,604 |
| Accounts receivable, net of allowance for doubtful accounts of $714 and $918, respectively |
10,671 |
5,947 |
| Investments available for sale |
5,788 |
6,470 |
| Inventories |
35,665 |
36,235 |
| Deferred income tax assets |
4,564 |
4,582 |
| Prepaid expenses and other |
6,467 |
5,700 |
| Total current assets |
118,573 |
106,538 |
|
|
|
| Property, plant and equipment, net |
26,636 |
27,391 |
| Investment securities |
1,770 |
1,778 |
| Intangible assets |
1,266 |
1,303 |
| Deferred income tax assets |
12,945 |
12,916 |
| Other assets |
9,710 |
9,489 |
|
$ 170,900 |
$ 159,415 |
|
|
|
| Liabilities and Shareholders’ Equity |
|
|
| Current Liabilities: |
|
|
| Accounts payable |
$ 4,485 |
$ 4,855 |
| Accrued volume incentives |
22,065 |
18,619 |
| Accrued liabilities |
35,240 |
34,601 |
| Deferred revenue |
3,140 |
3,385 |
| Income taxes payable |
4,902 |
3,708 |
| Total current liabilities |
69,832 |
65,168 |
|
|
|
| Liability related to unrecognized tax benefits |
20,573 |
21,366 |
| Deferred compensation payable |
1,770 |
1,778 |
| Other liabilities |
3,124 |
2,721 |
| Total long-term liabilities |
25,467 |
25,865 |
| Shareholders’ Equity: |
|
|
| Common stock, no par value; 50,000 shares authorized, 15,533 issued and outstanding as of March 31, 2011 and December 31, 2010 |
67,840 |
67,752 |
| Retained earnings |
14,900 |
8,278 |
| Accumulated other comprehensive loss |
(7,139) |
(7,648) |
| Total shareholders’ equity |
75,601 |
68,382 |
|
$ 170,900 |
$ 159,415 |
|
|
| NATURE’S SUNSHINE PRODUCTS, INC. AND SUBSIDIARIES |
| CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS |
| (Amounts in thousands, except per share information) |
| (Unaudited) |
|
|
Three Months Ended
March 31, |
|
2011 |
2010 |
|
|
|
| Net sales revenue (net of the rebate portion of volume incentives of $11,582 and $11,176, respectively) |
$ 92,844 |
$ 86,790 |
| Cost and expenses: |
|
|
| Cost of goods sold |
18,552 |
17,917 |
| Volume incentives |
34,298 |
32,551 |
| Selling, general and administrative |
32,373 |
35,752 |
|
85,223 |
86,220 |
| Operating income |
7,621 |
570 |
| Other income, net |
265 |
2,901 |
|
|
|
| Income before provision (benefit) for income taxes |
7,886 |
3,471 |
| Provision (benefit) for income taxes |
1,264 |
(1,300) |
| Net income from continuing operations |
6,622 |
4,771 |
| Loss from discontinued operations |
— |
(618) |
| Net income |
$ 6,622 |
$ 4,153 |
|
|
|
| Basic and diluted net income per common share |
|
|
|
|
|
| Basic |
|
|
| Net income from continuing operations |
$0.43 |
$ 0.31 |
| Loss from discontinued operations |
$— |
$ (0.04) |
| Net income |
$0.43 |
$ 0.27 |
|
|
|
| Diluted: |
|
|
| Net income from continuing operations |
$0.43 |
$ 0.31 |
| Loss from discontinued operations |
$— |
$ (0.04) |
| Net income |
$0.43 |
$ 0.27 |
|
|
|
| Weighted average basic common shares outstanding |
15,533 |
15,510 |
| Weighted average diluted common shares outstanding |
15,561 |
15,534 |
|
|
| NATURE’S SUNSHINE PRODUCTS, INC. AND SUBSIDIARIES |
| RECONCILIATION OF NET INCOME (LOSS) to EBITDA |
| (Amounts in thousands) |
| (Unaudited) |
|
|
Three Months Ended
March 31, |
|
2011 |
2010 |
|
|
|
| Net income |
$ 6,622 |
$ 4,153 |
| EBITDA adjustments: |
|
|
| Loss from discontinued operations |
— |
618 |
| Depreciation and amortization |
1,054 |
1,118 |
| Share-based compensation expense |
88 |
69 |
| Other income, net* |
(265) |
(2,901) |
| Taxes |
1,264 |
(1,300) |
| EBITDA |
$ 8,763 |
$ 1,757 |
* Other income, net is primarily comprised of foreign exchange gains (losses), interest income, and interest expense.
CONTACT: Stephen M. Bunker
Chief Financial Officer
Nature's Sunshine Products, Inc.
Provo, Utah 84606
(801) 342-4370
SOUTH SAN FRANCISCO, Calif., May 6, 2011 (GLOBE NEWSWIRE) — OXiGENE, Inc. (Nasdaq:OXGN), a clinical-stage, biopharmaceutical company developing novel therapeutics to treat cancer and eye diseases, will report first quarter 2011 results on Thursday, May 12, 2011. A conference call and webcast hosted by OXiGENE management will begin at 4:30 pm EDT (1:30 p.m. PDT).
To listen to a live or an archived version of the audio webcast, please log on to the Company’s website, www.oxigene.com. Under the “Investors” tab, select the link to “Events & Presentations.”
OXiGENE’s earnings conference call can also be heard live by dialing (888) 841-3431 in the United States and Canada, and +1 (678) 809-1060 for international callers, five minutes prior to the beginning of the call. A replay will be available starting at 7:30 p.m. EDT, (4:30 p.m. PDT) on May 12, 2011 and ending at midnight EST (9:00 p.m. PDT) on Wednesday, May 18, 2011. To access the replay, please dial (800) 642-1687 if calling from the United States or Canada, or +1 (706) 645-9291 from international locations. Please refer to replay pass code 66014001.
About OXiGENE, Inc.
OXiGENE is a clinical-stage biotechnology company developing novel small-molecule therapeutics to treat cancer and eye diseases. The Company’s major focus is the clinical advancement of drug candidates that selectively disrupt abnormal blood vessels associated with solid tumor progression and visual impairment. OXiGENE is dedicated to leveraging its intellectual property position and therapeutic development expertise to bring life saving and enhancing medicines to patients.
The OXiGENE, Inc. logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=4969
CONTACT: Investor and Media Contact:
Michelle Edwards, Investor Relations
medwards@oxigene.com
650-635-7006
BELGRADE, Mont., May 5, 2011 /PRNewswire/ — Bacterin International Holdings, Inc. (“Bacterin”) (NYSE Amex: BONE), a creator and developer of revolutionary bone graft material and antimicrobial coatings for medical applications, today announced that it is commencing distribution of the Company’s third human acellular biological scaffold, hMatrix®, an acellular dermal scaffold.
Bacterin’s hMatrix® is an acellular matrix processed from donated human dermal tissue that is used to replace damaged tissue or repair, reinforce or supplementary support soft tissue defects. hMatrix® retains the natural structure of dermis to promote cellular ingrowth, tissue vascularization, and regeneration. In line with the Company’s focus on providing safe products, hMatrix® will be distributed as a sterile product. The Company initially intends to market the product for homologous use indications, including abdominal wall repair, breast reconstruction, and for wound covering – a market size estimated by the company to exceed $2.5 billion, annually in the U.S.
“Our open dialog with the surgeons that use our OsteoSponge® products provided us with invaluable input and recommendations to encourage us to enter this large dermal scaffold market,” commented Guy Cook, chairman and CEO of Bacterin. “We have been able to quickly adapt our core technology and, over the past six months, were able to leverage our manufacturing processes, donor supply, and sales effort to support the commercialization of this important new product line. We are excited to be expanding our biologic portfolio and product offerings into this call point, for which we have received a great deal of interest, and are very optimistic of its revenue potential.”
About Bacterin International Holdings, Inc.
BACTERIN INTERNATIONAL HOLDINGS, INC. (“the “Company” or “Bacterin”) develops, manufactures and markets biologics products to domestic and international markets. Bacterin’s proprietary methods optimize the growth factors in human allografts to create the ideal stem cell scaffold and promote bone and other tissue growth. These products are used in a variety of applications including enhancing fusion in spine surgery, relief of back pain with a facet joint stabilization, promotion of bone growth in foot and ankle surgery, promotion of cranial healing following neurosurgery and subchondral repair in knee and other joint surgeries.
Bacterin’s Medical Device division develops antimicrobial coatings based upon proprietary coating technologies. Bacterin’s strategic coating initiatives include antimicrobial coatings designed to inhibit biofilm formation and microbial contamination. Headquartered in Belgrade, Montana, Bacterin operates a 32,000 square foot., state-of-the-art, fully compliant and FDA registered facility, equipped with five “Class 100” clean rooms. For further information please visit www.bacterin.com.
This news release contains certain disclosures that may be deemed forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that are subject to significant risks and uncertainties. Forward-looking statements include statements that are predictive in nature, that depend upon or refer to future events or conditions, or that include words such as “continue,” “efforts,” “expects,” “anticipates,” “intends,” “plans,” “believes,” “estimates,” “projects,” “forecasts,” “strategy,” “will,” “goal,” “target,” “prospects,” “potential,” “optimistic,” “confident,” “likely,” “probable” or similar expressions or the negative thereof. These forward-looking statements are based on current expectations or beliefs and include, but are not limited to, statements indicating the Company’s expectation that the proposed transaction will occur. Statements of historical fact also may be deemed to be forward-looking statements. We caution that these statements by their nature involve risks and uncertainties, and actual results may differ materially depending on a variety of important factors, including, among others: the Company’s ability to meet its obligations under existing and anticipated contractual obligations; the Company’s ability to develop, market, sell and distribute desirable applications, products and services and to protect its intellectual property; the ability and willingness of third-party manufacturers to timely and cost-effectively fulfill orders from the Company; the ability of the Company’s customers to pay and the timeliness of such payments, particularly during recessionary periods; the Company’s ability to obtain financing as and when needed; changes in consumer demands and preferences; the Company’s ability to attract and retain management and employees with appropriate skills and expertise; the impact of changes in market, legal and regulatory conditions and in the applicable business environment, including actions of competitors; and other factors. The Company undertakes no obligation to release publicly any revisions to any forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events, except as required by law.
SOURCE Bacterin International Holdings, Inc.
GONGYI, China, May 5, 2011 /PRNewswire-Asia-FirstCall/ — China GengSheng Minerals, Inc. (AMEX: CHGS), a leading China-based high-tech industrial materials manufacturer producing heat-resistant, energy-efficient materials for a variety of industrial applications, today announced plans to construct a new fracture proppant manufacturing facility in Gongyi, Henan Province, which will increase the Company’s annual proppant manufacturing capacity by 60,000 metric tons, to 150,000 tons, including 30,000 tons produced by third parties under OEM agreements. Construction on this new facility began in the second quarter of 2011, with production expected to commence during the second half of the year.
“New technological developments and a global surge in oil and gas drilling is driving a sharp increase in demand for high-quality, cost-effective proppant materials such as ours, and we believe that the time is right to expand our production capacity in order to capture this sizeable market opportunity,” said Mr. Shunqing Zhang, Chairman and CEO of China GengSheng Minerals. “Through our organic capacity expansion, we are able to easily scale manufacturing volume, while maintaining tight quality and cost controls. In addition, we are working to further diversify our marketing channels to build the GengSheng brand among overseas customers. In light of these favorable market trends, our renewed sales and marketing initiatives and this additional capacity, we expect to achieve continued strong growth from our fracture proppants business as we move forward and the markets continue to mature.”
This new facility will be constructed on approximately 87,000 square meters of land, for which the Company has signed a 20-year lease, and will include 2 production lines capable of manufacturing proppant materials to customer specifications. Total cost of the new facility is expected to be approximately $8.6 million, which will be fully funded through operating cash flow and the proceeds of GengSheng’s registered direct offering, completed in January 2011.
About China GengSheng Minerals, Inc.
China GengSheng Minerals, Inc. (“GengSheng”) develops, manufactures and markets a broad range of high-tech industrial material products, including monolithic refractories, industrial ceramics and fracture proppants. A market leader offering customized solutions, GengSheng sells its products primarily to the iron-and-steel industry as heat-resistant components for steel-making furnaces, industrial kilns and other high-temperature vessels to guarantee and improve the productivity of those expensive pieces of equipment while reducing their consumption of energy. Founded in 1986 and based in China’s Henan province, GengSheng currently has over 200 customers in the iron, steel, oil, glass, cement, aluminum and chemical businesses located in China and other countries. GengSheng conducts business through GengSheng International Corporation, a British Virgin Islands company, and its Chinese subsidiaries, which are Henan GengSheng Refractories Co., Ltd., Zhengzhou Duesail Fracture Proppant Co., Ltd., Henan GengSheng Micronized Powder Materials Co., Ltd., Guizhou SouthEast Prefecture Co., Ltd., GengSheng New Materials Co., Ltd., and Henan GengSheng High Temperature Materials Co., Ltd.
For more information about the Company, please visit http://www.gengsheng.com.
To be added to the Company’s email distribution for future press releases, please send your request to gengsheng@tpg-ir.com.
Forward-looking Statement
This press release contains statements that are forward-looking within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements include, without limitation, any statement that may predict, forecast, indicate, or imply future results, performance or achievements, and may contain the words “estimate,” “project,” “intend,” “forecast,” “anticipate,” “plan,” “planning,” “expect,” “believe,” “will,” “will likely, ” “should,” “could,” “would,” “may” or words or expressions of similar meaning. Such forward-looking statements are only predictions and are not guarantees of future performance. Investors are cautioned that any such forward-looking statements are and will be, as the case may be, subject to many risks, uncertainties, certain assumptions and factors relating to the operations and business environments of China GengSheng Minerals, Inc. and its subsidiaries that my cause the actual results of the companies to be materially different from any future results expressed or implied in such forward-looking statements. Although China GengSheng Minerals, Inc. believes that the expectations and assumptions reflected in the forward-looking statements are reasonable based on information currently available to its management, China GengSheng Minerals, Inc. cannot guarantee future results or events. China GengSheng Minerals, Inc. expressly disclaims a duty to update any of the forward-looking statement.
|
Contacts:
|
|
|
In the US:
|
|
|
The Piacente Group, Inc.
|
|
|
Investor Relations
|
|
|
Brandi Floberg or Lee Roth
|
|
|
+1-212-481-2050
|
|
|
gengsheng@tpg-ir.com
|
|
|
|
|
In China:
|
|
|
The Piacente Group, Inc.
|
|
|
Investor Relations
|
|
|
Wendy Sun
|
|
|
+86-10-6590-7991
|
|
|
gengsheng@tpg-ir.com
|
|
|
|
|
China GengSheng Minerals, Inc.
|
|
|
Investor Relations
|
|
|
Mr. Shuai Zhang
|
|
|
gszs@gengsheng.com
|
|
|
+86-135-2551-0415
|
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WILMINGTON, Mass., May 5, 2011 (GLOBE NEWSWIRE) — DUSA Pharmaceuticals, Inc.(R) (Nasdaq:DUSA – News), a dermatology company that is developing and marketing Levulan(R) Photodynamic Therapy (PDT) and other products focused on patients with common skin conditions, reported today its corporate highlights and financial results for the first quarter ended March 31, 2011.
Highlights for the first quarter include:
- Total product revenues were $11.1 million for the quarter, representing a $2.4 million or 27% year-over-year improvement.
- Domestic PDT revenues totaled $10.7 million for the quarter, representing a $2.6 million or 33% year-over-year improvement.
- Domestic Kerastick(R) revenues totaled $10.2 million for the quarter, representing a $2.6 million or 35% year-over-year improvement.
- Kerastick(R) gross margins for the quarter reached a record high at 89%.
- The Company experienced a $1.8 million bottom line year-over-year improvement on a non-GAAP basis for the quarter. Please refer to the section entitled “Use of Non-GAAP Financial Measures” included at the end of this release.
- The Company generated $1.4 million in positive cash flow (change in cash and cash equivalents and marketable securities) during the first quarter of 2011.
- The Company expanded its sales force to 45 with the addition of 5 individuals.
Management Comments:
“We are off to a great start in 2011,” stated Robert Doman, President and CEO. “Continued growth of our core domestic PDT revenues, as well as record gross margins, drove significant year-over-year improvement in our non-GAAP profitability and cash flow.”
“The results of the quarter are even more impressive given the fact that they followed our record performance of the fourth quarter of 2010,” continued Doman.
“As the year progresses, we remain focused on building upon the momentum we have created in the marketplace by further leveraging our expanding sales force in an effort to increase market penetration and acceptance of Levulan(R) PDT,” concluded Doman.
Other updates:
- At present, we are continuing to evaluate the initiation of a DUSA-sponsored clinical trial designed to study the broad area application and/or short drug incubation, or BASDI, method of using the Levulan(R) Kerastick(R). The protocol objectives would be to compare the safety and efficacy of various incubation times (1, 2 or 3 hours) of Levulan(R) plus BLU-U(R) PDT versus vehicle plus BLU-U(R) for the treatment of multiple actinic keratoses of the face or scalp. The timing on the initiation of this study has been delayed as we refine the protocol in consultation with outside experts. We expect to complete our evaluation and determine next steps in the coming months.
First Quarter 2011 Financial Results:
Total product revenues were $11.1 million in the first quarter of 2011, an increase of $2.4 million or 27% from $8.7 million in the first quarter of 2010. PDT revenues totaled $11.0 million, an increase of $2.7 million or 32% from $8.3 million for the comparable 2010 period. The increase in PDT revenues was attributable to a $2.7 million increase in Kerastick(R) revenues. The Kerastick(R) revenue improvement was driven by a 22% increase in sales volumes and an 11% increase in our average selling price. Kerastick(R) sales volumes increased to 75,213 units sold in the first quarter of 2011 from 61,422 units sold in the comparable 2010 period. Domestic Kerastick(R) sales volumes increased by 12,822 units or 22% and were supplemented by a 969 unit increase in our international sales volumes. BLU-U(R) revenues were flat year-over-year at $0.5 million. There were 64 units sold during the first quarter, as compared to the 77 units sold in the comparable prior year quarter. The average selling price of the unit increased by 20% year-over-year due to the absence of incentive pricing offered to customers in the first quarter of 2010 in an effort to sell off our existing BLU-U inventory in advance of the introduction of the upgraded design which became available in April 2010. Non-PDT revenues were $0.1 million for the quarter, down $0.3 million year-over-year.
DUSA’s net loss on a GAAP basis was $0.6 million or $0.02 per common share for the first quarter of 2011, compared to a net loss of $0.4 million or $0.02 per common share in the first quarter of 2010. Our financial results on a GAAP basis have been negatively impacted by the fair value accounting over the warrants issued in conjunction with a 2007 equity financing transaction. The fair value accounting of the warrants is subject to significant fluctuation based on changes in our stock price. Appreciation in DUSA’s stock price has resulted the recording of significant non-cash charges related to the change in the fair value of warrants in our Statement of Operations. The non-cash charges recorded in the first quarter of 2011 and 2010 were $2.2 million and $0.2 million, respectively.
Please refer to the section entitled “Use of Non-GAAP Financial Measures” and the accompanying financial table included at the end of this release for a reconciliation of GAAP to non-GAAP results for the three month periods ended March 31, 2011 and 2010, respectively.
DUSA’s non-GAAP net income for the first quarter of 2011 was $1.8 million or $0.07 per common share, compared to breakeven in the prior year period. The improvement in the Company’s profitability was mainly the result of the year-over-year increase in our PDT revenues, which was partially offset by an increase in our operating costs.
As of March 31, 2011, total cash, cash equivalents, and U.S. government securities were $21.1 million, compared to $19.6 million at December 31, 2010, representing an increase of $1.4 million during the quarter.
Conference Call and Audio Webcast Details and Dial-in Information:
In conjunction with this announcement, DUSA will host a conference call and audio webcast today:
Thursday, May 5th – 8:30 am EDT
North American callers dial:
877-645-6210
International callers dial:
970-315-0447
Participant Conference ID: 63830923
To access the call online via webcast, please click here, or visit http://bit.ly/ioG9Oa.
A telephone replay will be available shortly after the live call concludes. To access the replay, dial 800-642-1687 (North American callers) or 706-645-9291 (International callers). The telephone replay and webcast will also be accessible on the investors section of our website approximately six hours following the call at www.dusapharma.com.
Revenues Table, Condensed Consolidated Balance Sheets, Condensed Consolidated Statement of Operations and GAAP to Non-GAAP reconciliation follow:
Revenues for the three-month periods were comprised of the following:
|
3-months ended March 31, |
|
2011 |
2010 |
|
(Unaudited) |
(Unaudited) |
| PDT Drug & Device Product Revenues |
|
|
| Kerastick(R) Product Revenues: |
|
|
| United States |
$10,187,000 |
$7,549,000 |
| Canada |
183,000 |
57,000 |
| Korea |
116,000 |
109,000 |
| Rest of World |
7,000 |
87,000 |
| Subtotal Kerastick(R) Product Revenues |
10,493,000 |
7,802,000 |
| BLU-U(R) Product Revenues: |
|
|
| United States |
489,000 |
489,000 |
| Canada |
— |
5,000 |
| Subtotal BLU-U(R) Product Revenues |
489,000 |
494,000 |
| Total PDT Drug & Device Product Revenues |
10,982,000 |
8,296,000 |
| Total Non-PDT Drug Product Revenues |
100,000 |
418,000 |
| TOTAL PRODUCT REVENUES |
$11,082,000 |
$8,714,000 |
|
| DUSA Pharmaceuticals, Inc. |
| Condensed Consolidated Balance Sheets |
|
|
|
|
March 31, 2011 |
December 31, 2010 |
|
(Unaudited) |
(Unaudited) |
| ASSETS |
|
|
| CURRENT ASSETS |
|
|
| Cash and cash equivalents |
$12,474,249 |
$8,884,402 |
| Marketable securities |
8,593,100 |
10,762,559 |
| Accounts receivable, net |
2,708,462 |
3,311,467 |
| Inventory |
2,528,236 |
2,165,220 |
| Prepaid and other current assets |
1,123,366 |
1,344,062 |
| TOTAL CURRENT ASSETS |
27,427,413 |
26,467,710 |
| Restricted cash |
175,028 |
174,753 |
| Property, plant and equipment, net |
1,552,104 |
1,582,777 |
| Deferred charges and other assets |
132,833 |
68,099 |
| TOTAL ASSETS |
$29,287,378 |
$28,293,339 |
|
|
|
| LIABILITIES AND SHAREHOLDERS’ EQUITY |
|
|
| CURRENT LIABILITIES |
|
|
| Accounts payable |
$1,007,696 |
$162,742 |
| Accrued compensation |
401,242 |
2,243,997 |
| Other accrued expenses |
2,777,896 |
2,348,838 |
| Deferred revenue |
648,006 |
712,338 |
| TOTAL CURRENT LIABILITIES |
4,834,840 |
5,467,915 |
| Deferred revenues |
1,861,972 |
1,917,237 |
| Warrant liability |
3,392,486 |
1,203,553 |
| Other liabilities |
170,998 |
181,153 |
| TOTAL LIABILITIES |
10,260,296 |
8,769,858 |
|
|
|
| SHAREHOLDERS’ EQUITY |
|
|
| Capital stock |
|
|
| Authorized: 100,000,000 shares; 40,000,000 shares designated as common stock, no par, and 60,000,000 shares issuable in series or classes; and 40,000 junior Series A preferred shares. Issued and outstanding: 24,413,969 and 24,239,365 shares of common stock, no par, at March 31, 2011 and December 31, 2010, respectively |
151,638,956 |
151,703,468 |
|
|
|
| Additional paid-in capital |
9,596,083 |
9,399,434 |
| Accumulated deficit |
(142,261,500) |
(141,656,600) |
| Accumulated other comprehensive loss |
53,543 |
77,179 |
| TOTAL SHAREHOLDERS’ EQUITY |
19,027,082 |
19,523,481 |
|
|
|
| TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY |
$29,287,378 |
$28,293,339 |
|
| DUSA Pharmaceuticals, Inc. |
| Condensed Consolidated Statement of Operations |
|
|
|
|
3-months ended March 31, |
|
2011 |
2010 |
|
(Unaudited) |
(Unaudited) |
| Product revenues |
$11,082,064 |
$8,713,880 |
| Cost of product revenues and royalties |
1,760,370 |
1,818,185 |
| Gross margin |
9,321,694 |
6,895,695 |
| Operating costs: |
|
|
| Research and development |
1,323,644 |
1,109,667 |
| Marketing and sales |
3,973,224 |
3,613,799 |
| General and administrative |
2,457,247 |
2,463,164 |
| Total operating costs |
7,754,115 |
7,186,630 |
| Income/(loss) from operations |
1,567,579 |
(290,935) |
| Other income: |
|
|
| Loss on change in fair value of warrants |
(2,188,933) |
(199,275) |
| Other Income, net |
16,454 |
65,727 |
| Net loss |
$ (604,900) |
$ (424,483) |
| Basic and diluted net loss per common share |
$ (0.02) |
$ (0.02) |
| Weighted average number of common shares |
24,238,398 |
24,122,459 |
Use of Non-GAAP Financial Measures
In addition to reporting financial results in accordance with GAAP, DUSA has provided in the table below non-GAAP financial measures adjusted to exclude stock-based compensation expense, consideration provided to the former Sirius shareholders, and the non-cash change in fair value of warrants. The Company believes that this presentation is useful to help investors better understand DUSA’s financial performance, competitive position and prospects for the future. Management believes that these non-GAAP financial measures assist in providing a more complete understanding of the Company’s underlying operational results and trends, and in allowing for a more comparable presentation of results. Management uses these measures along with their corresponding GAAP financial measures to help manage the Company’s business and to help evaluate DUSA’s performance compared to the marketplace. However, the presentation of non-GAAP financial measures is not meant to be considered in isolation or as superior to or as a substitute for financial information provided in accordance with GAAP. The non-GAAP financial measures used by the Company may be calculated differently from, and, therefore, may not be comparable to, similarly titled measures used by other companies.
Investors are encouraged to review the reconciliations of these non-GAAP financial measures to the comparable GAAP results, contained in the table below.
|
3-months ended March 31, |
|
2011 |
2010 |
|
(Unaudited) |
(Unaudited) |
| GAAP net loss |
$ (604,900) |
$ (424,483) |
| Share-based compensation (a) |
196,649 |
211,777 |
| Consideration to former Sirius shareholders (b) |
4,500 |
4,500 |
| Change in fair value of warrants (c) |
2,188,933 |
199,275 |
| Non-GAAP adjusted net income/(loss) |
$1,785,182 |
$ (8,931) |
| Non-GAAP basic and diluted net income/(loss) per common share |
$0.07 |
$0.00 |
| Weighted average number of basic common shares |
24,238,398 |
24,122,459 |
| Weighted average number of diluted common shares |
25,689,483 |
24,122,459 |
|
|
|
| (a) Share-based compensation expense resulting from the application of SFAS 123(R). |
| (b) Milestone payment related to Sirius Laboratories acquisition. |
| (c) Non-cash charge on the change in fair value of warrants. |
About DUSA Pharmaceuticals
DUSA Pharmaceuticals, Inc. is an integrated dermatology pharmaceutical company focused primarily on the development and marketing of its Levulan(R) PDT technology platform, and other dermatology products. Levulan(R) Kerastick(R) for topical solution plus DUSA’s BLU-U(R) Blue Light Photodynamic Therapy Illuminator is currently approved for the treatment of minimally to moderately thick actinic keratoses (AKs) of the face or scalp. DUSA also sells other dermatology products, including ClindaReach(R). DUSA is based in Wilmington, Mass. Please visit our website at www.dusapharma.com.
Except for historical information, this news release contains certain forward-looking statements that represent our current expectations and beliefs concerning future events, and involve certain known and unknown risk and uncertainties. These forward-looking statements relate to management’s expectations concerning objectives for a BASDI clinical study and timing thereof, and management’s beliefs concerning non-GAAP financial measures. These forward-looking statements are further qualified by important factors that could cause actual results to differ materially from future results, performance or achievements expressed or implied by those in the forward-looking statements made in this release. These factors include, without limitation, marketing of competitive products, actions and potential actions by health regulatory authorities, clinical trial risks, expenses and results, changing economic conditions, the status of our patent portfolio, reliance on third parties, including sole source vendors, sufficient funding, and other risks and uncertainties identified in DUSA’s Form 10-K for the year ended December 31, 2010.
Contact:
Robert F. Doman, President & CEO
978.909.2216
Richard Christopher, VP Finance & CFO
978.909.2211
Chad Rubin, Investor Relations Contact, The Trout Group LLC
646.378.2947
Cory Tromblee, Media Contact, MacDougall Biomedical
Communications
781.235.3060
BEIJING, May 5, 2011 /PRNewswire-Asia/ — Wowjoint Holdings Limited (“Wowjoint,” or the “Company”) (Nasdaq: BWOW, BWOWU, BWOWW), China’s innovative infrastructure solutions provider of customized heavy duty lifting and carrying machinery, today announced it has signed $8 million in new contracts, consisting of a $4 million sales contract and a $4 million leasing contract.
The sales contract, for a 900 ton special launching carrier, is Wowjoint’s first agreement with China Railway 17th Bureau Group which demonstrates the continued expansion that Wowjoint is enjoying with customers domestically as well as internationally. The carrier has an anticipated delivery within the third quarter of 2011. This customized carrier will be utilized to erect viaducts on three separate high-speed railway projects, which include the Hangzhou-Changsha, Nanjing-Anqing and Shanghai-Kunming high-speed railways.
“We are extremely excited about our new relationship with China Railway 17th Bureau Group,” Mr. Yabin Liu, Chief Executive Officer of Wowjoint stated. “This displays how our products are achieving deeper penetration within the infrastructure industry. Our constant focus on expanding our business within China and abroad, coupled with the robust pipeline of new railway projects has provided Wowjoint with tremendous sales momentum.”
China Railway No. 3 Engineering Group, Co’s Rail Line and Bridge Engineering Branch signed a leasing contract for a 900 ton special launching carrier, marking the second leasing agreement for Wowjoint’s most customized equipment. The contract is for 18 months, beginning October 1, 2011 when the equipment will be delivered. It will be utilized on a section of the Shanghai-Kunming high-speed railway.
Mr. Liu continued, “Our equipment continues to grow in demand and this contract shows our ability to provide extremely customized equipment but in a leasing situation. We believe that we will continue to expand our leasing business, thereby increasing the diversification in our revenue streams and penetrating new markets and customers.”
About Wowjoint Holdings Limited
Wowjoint is a leading provider of customized heavy duty lifting and carrying machinery used in large-scale infrastructure projects such as railway, highway and bridge construction. Wowjoint’s main product lines include launching gantries, tyre trolleys, special carriers and marine hoists. The Company’s innovative design capabilities have resulted in patent grants and proprietary products. Wowjoint is well positioned to benefit directly from China’s rapid infrastructure development by leveraging its extensive operational experience and long-term relationships with established blue chip customers. Information on Wowjoint’s products and other relevant information are available on its website at http://www.wowjoint.com.
Forward-Looking Statements
This press release includes “forward-looking statements” within the meaning of the safe harbor provisions of the United States Private Securities Litigation Reform Act of 1995. Words such as “expect,” “estimate,” “project,” “budget,” “forecast,” “anticipate,” “intend,” “plan,” “may,” “will,” “could,” “should,” “believes,” “predicts,” “potential,” “continue,” and similar expressions are intended to identify such forward-looking statements. Forward-looking statements in this press release include matters that involve known and unknown risks, uncertainties and other factors that may cause actual results, levels of activity, performance or achievements to differ materially from results expressed or implied by this press release. Wowjoint undertakes no obligation and does not intend to update these forward-looking statements to reflect events or circumstances occurring after the date of this communication. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this communication. All forward-looking statements are qualified in their entirety by this cautionary statement. All subsequent written and oral forward-looking statements concerning Wowjoint or other matters and attributable to Wowjoint or any person acting on their behalf are expressly qualified in their entirety by the cautionary statements above. Wowjoint does not undertake any obligation to update any forward-looking statement, whether written or oral, relating to the matters discussed in this news release.
For additional information contact:
|
Wowjoint Holdings:
|
|
|
Aubrye Harris-Foote, Vice President Investor Relations
|
|
|
Tel: +1-530-475-2793
|
|
|
Email: aubrye@wowjoint.com
|
|
|
Website: www.wowjoint.com
|
|
|
SOURCE Wowjoint Holdings Limited
LOVELAND, Colo., May 5, 2011 /PRNewswire/ — Heska Corporation (NASDAQ: HSKA, “Heska” or the “Company”) today reported financial results for its first quarter ended March 31, 2011.
(Logo: http://photos.prnewswire.com/prnh/20000622/HESKALOGO)
Highlights since January 1, 2011 include:
- 10% growth in year-over-year quarterly revenue
- Growth in year-over-year quarterly revenue in both of the Company’s operating segments
- 34% increase in year-over-year quarterly gross profit
- 42.5% Gross Margin – the highest quarterly level in three years
- Over $1.5MM in operating income – the second highest quarterly operating income in Heska history
- An operating expense increase of less than 1%
- Continued net cash balance sheet position
- Joe Aperfine employed as Executive Vice President, Sales and Marketing
- Announcement of a new platform technology agreement
“We had a strong quarter with revenue growth, margin expansion and an improved level of profitability. Once again, our results met or exceeded our stated guidance in all areas,” said Robert Grieve, Heska’s Chairman and CEO. “In addition, Joe Aperfine formally began as our new Executive Vice President, Sales and Marketing earlier this week. We conducted an extensive search for this position and were highly impressed with Joe’s experience, skills and track record of success. We are excited by the potential for Joe’s leadership of our commercial efforts.”
Investor Conference Call
Management will conduct a conference call on Thursday, May 5, 2011 at 9:00 a.m. MDT (11:00 a.m. EDT) to discuss the first quarter 2011 financial results. To participate, dial (877) 941-9205 (domestic) or (480) 629-9835 (international); the conference call access number is 4435526. The conference call will also be broadcast live over the Internet at http://www.heska.com. To listen, simply log on to the web at this address at least ten minutes prior to the start of the call to register, download and install any necessary audio software. Telephone replays of the conference call will be available for playback until May 19, 2011. The telephone replay may be accessed by dialing (800) 406-7325 (domestic) or (303) 590-3030 (international). The webcast replay may be accessed from Heska’s home page at www.heska.com until May 19, 2011.
About Heska
Heska Corporation (NASDAQ: HSKA) sells advanced veterinary diagnostic and other specialty veterinary products. Heska’s state-of-the-art offerings to its customers include diagnostic instruments and supplies as well as single use, point-of-care tests, pharmaceuticals and vaccines. The company’s core focus is on the canine and feline markets where it strives to provide high value products and unparalleled customer support to veterinarians. For further information on Heska and its products, visit the company’s website at www.heska.com.
Forward-Looking Statements
This announcement contains forward-looking statements regarding Heska’s future financial and operating results. These statements are based on current expectations and are subject to a number of risks and uncertainties. Investors should note that there is an inherent risk in using past results, including trends, to predict future outcomes. In addition, factors that could affect the business and financial results of Heska generally include the following: uncertainties related to Heska’s ability to maintain a given level of profitability, or profitability at all; risks related to relying on a key individual or group of individuals; uncertainties regarding Heska’s ability to successfully market and sell its products in an economically sustainable manner; risks regarding Heska’s reliance on third-party suppliers such as minimum purchase requirements, which could have a significant adverse impact on Heska’s financial position; uncertainties regarding Heska’s reliance on third parties to whom Heska has granted substantial marketing rights to certain of Heska’s existing products and whom may be large Heska customers, including Schering-Plough Animal Health Corporation which has exclusive rights to our heartworm preventive in the United States; competition; risks related to Heska’s reliance on third parties to develop certain of Heska’s future products; and the risks set forth in Heska’s filings and future filings with the Securities and Exchange Commission, including those set forth in Heska’s Annual Report on Form 10-K for the year ended December 31, 2010.
Financial Table Follows:
|
Consolidated Statements of Operations
In Thousands, Except per Share Amounts
(unaudited)
|
|
|
|
|
Three Months Ended
March 31,
|
|
|
|
|
|
|
|
2010
|
|
2011
|
|
|
|
Revenue, net:
|
|
|
|
|
Core companion animal health
|
|
|
|
|
|
|
$
|
15,792
|
|
$
|
16,441
|
|
|
|
Other vaccines, pharmaceuticals and products
|
|
|
|
|
|
|
|
1,902
|
|
|
3,064
|
|
|
|
Total revenue, net
|
|
|
|
|
|
|
|
17,694
|
|
|
19,505
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of revenue
|
|
|
|
|
|
|
|
11,489
|
|
|
11,207
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit
|
|
|
|
|
|
|
|
6,205
|
|
|
8,298
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling and marketing
|
|
|
|
|
|
|
|
4,036
|
|
|
3,960
|
|
|
|
Research and development
|
|
|
|
|
|
|
|
457
|
|
|
331
|
|
|
|
General and administrative
|
|
|
|
|
|
|
|
2,200
|
|
|
2,467
|
|
|
|
Total operating expenses
|
|
|
|
|
|
|
|
6,693
|
|
|
6,758
|
|
|
|
Operating income (loss)
|
|
|
|
|
|
|
|
(488)
|
|
|
1,540
|
|
|
|
Interest and other expense, net
|
|
|
|
|
|
|
|
173
|
|
|
23
|
|
|
|
Income (loss) before income taxes
|
|
|
|
|
|
|
|
(661)
|
|
|
1,517
|
|
|
|
Income tax expense (benefit)
|
|
|
|
|
|
|
|
(330)
|
|
|
601
|
|
|
|
Net income (loss)
|
|
|
|
|
|
|
$
|
(331)
|
|
$
|
916
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic net income (loss) per share
|
|
|
|
|
|
|
$
|
(0.06)
|
|
$
|
0.18
|
|
|
|
Diluted net income (loss) per share
|
|
|
|
|
|
|
$
|
(0.06)
|
|
$
|
0.17
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares used for basic net income (loss) per share
|
|
|
|
|
|
|
|
5,216
|
|
|
5,232
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares used for diluted net income (loss) per share
|
|
|
|
|
|
|
|
5,216
|
|
|
5,261
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance Sheet Data
In Thousands (unaudited)
|
|
|
|
December 31,
2010
|
|
March 31,
2011
|
|
|
Cash and cash equivalents
|
|
$
|
5,492
|
|
$
|
5,567
|
|
|
|
Total current assets
|
|
|
27,279
|
|
|
30,109
|
|
|
|
Property and equipment, net
|
|
|
5,486
|
|
|
5,105
|
|
|
|
Total assets
|
|
|
63,048
|
|
|
64,148
|
|
|
|
Line of credit
|
|
|
3,079
|
|
|
3,379
|
|
|
|
Total current liabilities
|
|
|
12,660
|
|
|
12,751
|
|
|
|
Stockholders’ equity
|
|
|
45,798
|
|
|
46,876
|
|
|
|
|
|
|
|
|
|
|
|
|
