BEIJING, August 14, 2012 /PRNewswire-Asia-FirstCall/ -- Dehaier Medical Systems Ltd. (Nasdaq: DHRM) ("Dehaier" or the "Company"), an emerging leader in the development, assembly, marketing and sale of medical devices and homecare medical products, today announced its financial results for its second quarter and six months ended June 30, 2012.
Comments from Management
Mr. Ping Chen, Chief Executive Officer of Dehaier Medical, stated, "Throughout the first half of 2012, we continued to focus on diversifying our revenues. While we have continued to build on our medical device sales and distribution foundation, we have also devoted sales resources to growing our proprietary respiratory and oxygen homecare products, explored international expansion possibilities and put more energy into developing and researching homecare products and protecting our intellectual property. Throughout this process we have continued to report strong operating profits. We improved our gross and operating margins and continue to leverage a strong balance sheet with minimal long-term debt. We believe that our business will continue to grow at a healthy rate in the long term as we strengthen our medical device distribution network; increase the market recognition and demand for our proprietary products; research, develop and begin to sell new products; and ramp up our international expansion."
Operating Highlights
Second Quarter 2012 Financial Highlights
Fiscal 2012 Six Month Financial Highlights
Balance Sheet Highlights
(in millions) | 6/30/2012 | 12/31/2011 | ||
Cash and Cash Equivalents | $ | 1.1 | $ | 3.7 |
Working Capital | 25.9 | 27.0 | ||
Total Long-term Debt | 0 | 0 | ||
Stockholders' Equity | 31.9 | 30.2 |
About Dehaier Medical Systems Ltd.
Dehaier is an emerging leader in the development, assembly, marketing and sale of medical products, including respiratory and oxygen homecare medical products. The Company develops and assembles its own branded medical devices and homecare medical products from third-party components. The company also distributes products designed and manufactured by other companies, including medical devices from IMD (Italy), HEYER (Germany), Timesco (UK) and eVent Medical (US). Dehaier's technology is based on six patents and five software copyrights; additionally Dehaier has two pending software copyrights and proprietary technology. More information may be found at http://www.dehaier.com.cn.
Forward-looking Statements
This news release contains forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995. Forward-looking statements include statements concerning plans, objectives, goals, strategies, future events, government approvals or performance, and underlying assumptions and other statements that are other than statements of historical facts. These statements are subject to uncertainties and risks including, but not limited to, product and service demand and acceptance, changes in technology, economic conditions, the impact of competition and pricing, government regulation, future developments in payment for and demand for medical equipment and services, implementation of and performance under the joint venture agreement by all parties, and other risks contained in reports filed by the company with the Securities and Exchange Commission. All such forward-looking statements, whether written or oral, and whether made by or on behalf of the company, are expressly qualified by the cautionary statements and any other cautionary statements which may accompany the forward-looking statements. In addition, the company disclaims any obligation to update any forward-looking statements to reflect events or circumstances after the date hereof.
Contact Us
Dehaier Medical Systems Limited
Surie Liu
+86 10-5166-0080
lius@dehaier.com.cn
Dehaier Medical Systems Limited
Tina He
+86 10-5166-0080
hexw@dehaier.com.cn
(Tables to Follow)
DEHAIER MEDICAL SYSTEMS LIMITED AND AFFILIATE | |||||||
For the six months ended | For the three months ended | ||||||
2012 | 2011 | 2012 | 2011 | ||||
US$ | US$ | US$ | US$ | ||||
Revenue | 10,299,059 | 10,665,490 | 6,983,128 | 7,712,784 | |||
Costs of revenue | (6,317,316) | (6,826,494) | (4,242,660) | (4,871,247) | |||
Gross profit | 3,981,743 | 3,838,996 | 2,740,468 | 2,841,537 | |||
Service income | 132,915 | 156,428 | 92,518 | 71,595 | |||
Service expenses | (37,272) | (61,372) | (19,812) | (20,675) | |||
General and administrative expense | (1,031,502) | (1,016,167) | (540,789) | (512,641) | |||
Selling expense | (662,852) | (694,493) | (344,173) | (454,792) | |||
Operating Income | 2,383,032 | 2,223,392 | 1,928,212 | 1,925,024 | |||
Financial expenses (including interest expense of $64,904, $26,993, $37,741 and $10,816 for the six and three months ended June 30, 2012 and 2011, respectively) | (65,969) | (27,472) | (38,320) | (11,859) | |||
Non-operating Income | 395 | - | 395 | - | |||
Change in fair value of warrants liability | (92,067) | 149,867 | 107,441 | 140,341 | |||
Income before provision for income taxes and non-controlling interest | 2,225,391 | 2,345,787 | 1,997,728 | 2,053,506 | |||
Provision for income tax | (416,468) | (396,642) | (319,420) | (314,105) | |||
Net income | 1,808,923 | 1,949,145 | 1,678,308 | 1,739,401 | |||
Non-Controlling interest in (income) loss | 7,478 | (5,654) | 12,072 | (1,324) | |||
Net income attributable to Dehaier Medical Systems Limited | 1,816,401 | 1,943,491 | 1,690,380 | 1,738,077 | |||
Net Income | 1,808,923 | 1,949,145 | 1,678,308 | 1,739,401 | |||
Other comprehensive income | |||||||
Foreign currency translation adjustments | (226,067) | 511,375 | (268,862) | 324,095 | |||
Comprehensive Income | 1,582,856 | 2,460,520 | 1,409,446 | 2,063,496 | |||
Comprehensive income attributable to the non-controlling interest | 21,019 | (28,591) | 13,253 | (17,685) | |||
Comprehensive income attributable to Dehaier Medical Systems Limited | 1,603,875 | 2,431,929 | 1,422,699 | 2,045,811 | |||
Earnings per share | |||||||
-Basic | 0.40 | 0.43 | 0.37 | 0.39 | |||
-Diluted | 0.39 | 0.43 | 0.36 | 0.39 | |||
Weighted average number of common shares used in computation | |||||||
-Basic | 4,566,160 | 4,506,354 | 4,569,722 | 4,510,000 | |||
-Diluted | 4,714,077 | 4,506,354 | 4,717,639 | 4,510,000 |
DEHAIER MEDICAL SYSTEMS LIMITED AND AFFILIATE | |||
June 30, | December 31, | ||
2012 | 2011 | ||
US$ | US$ | ||
ASSETS | |||
CURRENT ASSETS: | |||
Cash and cash equivalents | 1,107,942 | 3,694,486 | |
Accounts receivable | 12,414,588 | 12,159,842 | |
Other receivables | 4,192,759 | 2,522,136 | |
Prepayment and other current assets | 7,288,515 | 6,714,001 | |
Inventories, net | 4,799,302 | 5,532,311 | |
Tax receivable | 503,853 | 888,452 | |
Deferred tax asset | 117,110 | 118,030 | |
Total Current Assets | 30,424,069 | 31,629,258 | |
Property and equipment, net | 3,063,366 | 3,348,533 | |
Intangible assets, net | 2,393,781 | - | |
Total Assets | 35,881,216 | 34,977,791 | |
LIABILITIES AND EQUITY | |||
CURRENT LIABILITIES: | |||
Short-term borrowings | 2,360,295 | 1,585,890 | |
Accounts payable | 39,040 | 32,925 | |
Advances from customers | 237,653 | 303,000 | |
Accrued expenses and other current liabilities | 319,836 | 349,158 | |
Taxes payable | 425,089 | 2,042,048 | |
Warranty obligation | 332,072 | 334,680 | |
Total Current Liabilities | 3,713,985 | 4,647,701 | |
OTHER LIABILITIES | |||
Warrants liability | 286,041 | 96,469 | |
Total Liabilities | 4,000,026 | 4,744,170 | |
Commitments and Contingency | |||
Equity | |||
Common shares, $0.002731 par value, 18,307,038 shares authorized, 4,570,000 and 4,560,000 shares issued and outstanding at June 30, 2012 and December 31, 2011, respectively | 12,481 | 12,454 | |
Additional paid in capital | 13,359,602 | 13,281,374 | |
Retained earnings | 14,757,972 | 12,941,572 | |
Accumulated other comprehensive income | 2,359,421 | 2,585,488 | |
Total Dehaier Medical Systems Limited shareholders' equity | 30,489,476 | 28,820,888 | |
Non-controlling interest | 1,391,714 | 1,412,733 | |
Total equity | 31,881,190 | 30,233,621 | |
Total liabilities and equity | 35,881,216 | 34,977,791 |
DEHAIER MEDICAL SYSTEMS LIMITED AND AFFILIATE | ||||
For the six months ended June 30, | ||||
2012 | 2011 | |||
US$ | US$ | |||
Cash flows from operating activities | ||||
Net income | 1,808,923 | 1,949,145 | ||
Adjustments to reconcile net income to net cash used in operating activities | ||||
Stock-based compensation expense | 124,077 | 59,300 | ||
Depreciation and amortization | 246,448 | 219,976 | ||
Change in fair value of warrants liability | 92,067 | (149,867) | ||
Recovery of doubtful accounts | 27,942 | - | ||
Changes in assets and liabilities: | ||||
Increase in accounts receivable | (282,688) | (3,451,269) | ||
Increase in prepayments and other current assets | (522,831) | (4,240,759) | ||
Decrease (Increase) in other receivables | (1,670,623) | 2,810 | ||
Decrease (Increase) in inventories | 733,009 | 96,299 | ||
Decrease in tax receivable | 384,599 | (911,942) | ||
Increase (Decrease) in accounts payable | 6,115 | 1,153,882 | ||
Decrease in advances from customers | (65,347) | (116,220) | ||
Increase in accrued expenses and other current liabilities | (31,931) | 9,502 | ||
Increase in tax payable | (1,616,959) | 2,022,812 | ||
Net cash used in operating activities | (767,199) | (3,356,331) | ||
Cash flows from investing activities | ||||
Acquisition of machinery and software copyrights | (2,405,707) | (62,302) | ||
Advances to related parties | - | (2,358) | ||
Net cash used in investing activities | (2,405,707) | (64,660) | ||
Cash flows from financing activities | ||||
Proceeds from bank loan | 2,373,145 | 1,542,680 | ||
Repayment of bank loan | (1,580,436) | (1,533,604) | ||
Net cash provided by financing activities | 792,709 | 9,076 | ||
Effect of exchange rate fluctuations on cash and cash equivalents | (206,347) | 496,552 | ||
Net decrease in cash and cash equivalents | (2,586,544) | (2,915,363) | ||
Cash and cash equivalents at beginning of period | 3,694,486 | 5,923,386 | ||
Cash and cash equivalents at end of period | 1,107,942 | 3,008,023 | ||
Supplemental cash flow information | ||||
Income tax paid | 779,678 | 13,260 | ||
Interest paid | 64,904 | 26,993 |