- Record revenues of $15.3 million, an increase of 34.3% from Q2 in 2008
- Record net income of $1.7 million, an increase of 197% from Q2 in 2008, EPS of $0.16
- Anticipates earnings growth momentum to continue for the rest of 2009
NEW YORK, Aug 13 /PRNewswire-Asia/ -- Deer Consumer Products, Inc. (Nasdaq: DEER; Website: www.deerinc.com), one of the world's largest manufacturers of home and kitchen electronics marketing to both global and Chinese domestic consumers, is pleased to announce record financial results for the 2nd quarter ended June 30, 2009.
Record 2nd Quarter Revenues
-- Revenues of $15.3 million, up 34.3%, compared to $11.4 million in Q2
2008
-- Significant revenue increase was attributed to the Company's
marketing success in both domestic and international markets
Record 2nd Quarter Net Income
-- Net income of $1.7 million, up 197%, compared to $0.58 million in Q2
2008
-- The significant increase in net income was primarily due to greater
economies of scale in production costs combined with rapid growth in
revenues and significantly improved operating efficiency.
Anticipates Earnings Growth to Continue in 2009
Based on customer orders received and anticipated product delivery schedule for the remainder of 2009, DEER has raised 2009 earnings guidance to approximately $0.93 per share, or approximately $10.5 million in net income on 2009 revenue guidance of approximately $81 million. In 2008, DEER reported US GAAP audited revenue of $43.8 million, net income of $3.4 million and earnings per share of $0.39 on a post share split basis. DEER currently has 11.28 million shares issued and outstanding.
Management Comments & Strategies - Organic Growth and Strategic Acquisitions
Bill He, Deer's Founder, Chairman & CEO commented, "We are experiencing record sales and growth both in the domestic and international markets as businesses and consumers respond to the results of improving economic environment in the consumer marketplace. In addition, I am delighted with our ability to focus on cost efficiency in all market efforts and the resulting improvements in our bottom line. Deer will continue to expand our market penetration organically while seek out potential synergistic acquisition targets that may be immediately accretive to our earnings growth. As a market leader in China's consumer based home electronics, Deer is well positioned to further benefit from the global economic recovery."
About Deer Consumer Products, Inc.
Deer Consumer Products, Inc. (www.deerinc.com) is a NASDAQ listed U.S. public company headquartered in China. Supported by more than 103 patents and approximately 1,500 full time and part time employees, Deer is a market leader in the design, manufacture and sale of home and kitchen electric appliances marketing to the vast Chinese domestic consumer markets as well as customers in more than 40 countries worldwide. Deer's product lines include blenders, juicers, pressure cookers and other home appliances designed to improve home lifestyles in today's fast-paced society. With more than 100 global and domestic clients/branded products including Black & Decker, Ariete, Disney, Toastmaster, Magic Bullet, Back to Basics, and Wal-Mart, Deer has enjoyed rapid sales and earnings growth in the recent years.
Safe Harbor Statement
All statements in this press release that are not historical are forward-looking statements made pursuant to the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. There can be no assurance that actual results will not differ from the company's expectations. You are cautioned not to place undue reliance on any forward-looking statements in this press release as they reflect Deer's current expectations with respect to future events and are subject to risks and uncertainties that may cause actual results to differ materially from those contemplated. Potential risks and uncertainties include, but are not limited to, the risks described in Deer's filings with the Securities and Exchange Commission.
Contact Information:
Corporate Contact:
James Chiu Chief Operating Officer
Deer Consumer Products, Inc.
Tel: 011-86-755-8602831
DEER CONSUMER PRODUCTS, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
June 30, December 31,
2009 2008
---- ----
(unaudited)
ASSETS
------
CURRENT ASSETS:
Cash and cash equivalents $4,803,810 $2,782,026
Restricted cash 90,574 200,099
Accounts receivable, net 11,724,789 8,560,465
Advances to suppliers 3,029,003 5,015,479
Other receivables 425,649 489,286
Short term investments - 29,340
Due from related party - 331,267
Inventories 8,348,225 7,680,851
Other current assets - 13,342
-- ------
Total current assets 28,422,050 25,102,155
PROPERTY AND EQUIPMENT, net 10,569,106 11,291,202
CONSTRUCTION IN PROGRESS 1,798,861 892,897
INTANGIBLE ASSETS, net 398,860 404,125
OTHER ASSETS 29,840 39,689
------ ------
TOTAL ASSETS $41,218,717 $37,730,068
=========== ===========
LIABILITIES AND STOCKHOLDERS' EQUITY
---------------------------------------
CURRENT LIABILITIES:
Accounts payable $9,166,903 $8,968,088
Other payables 1,225,099 760,632
Unearned revenue 2,454,242 3,305,966
Accrued payroll 609,542 168,282
Short term loans - 3,552,841
Advances from related party 80,070 274,805
Notes payable 4,828,684 3,155,348
Tax and welfare payable 2,195,666 1,533,013
--------- ---------
Total current liabilities 20,560,206 21,718,975
LONG-TERM LOAN 732,500 733,500
------- -------
TOTAL LIABILITIES 21,292,706 22,452,475
---------- ----------
STOCKHOLDERS' EQUITY:
Common Stock, $0.001 par value; 75,000,000
shares authorized; 11,281,558 and 9,826,123
shares issued and oustanding as of
June 30, 2009 and December 31, 2008,
respectively 11,282 9,826
Additional paid-in capital 11,676,849 9,339,197
Development funds 669,398 542,701
Statutory reserve 1,338,798 1,085,403
Other comprehensive income 2,283,258 2,345,698
Retained earnings 3,946,426 1,954,768
--------- ---------
Total stockholders' equity 19,926,011 15,277,593
---------- ----------
TOTAL LIABILITIES AND STOCKHOLDERS'
EQUITY $41,218,717 $37,730,068
=========== ===========
DEER CONSUMER PRODUCTS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME AND OTHER COMPREHENSIVE INCOME
Three Months Ended June 30, Six Month Ended June 30,
-------------------------- ------------------------
2009 2008 2009 2008
---- ---- ---- ----
(unaudited) (unaudited) (unaudited) (unaudited)
Revenue $15,310,503 $11,403,758 $22,182,719 $20,502,927
Cost of Revenue 11,519,865 9,316,186 16,732,569 16,294,338
---------- --------- ---------- ----------
Gross profit 3,790,638 2,087,572 5,450,150 4,208,589
Operating expenses
Selling expenses 727,911 770,748 911,253 1,209,416
General and
administrative
expenses 806,323 683,622 1,177,904 1,239,502
------- ------- --------- ---------
Total operating
expenses 1,534,234 1,454,370 2,089,157 2,448,918
--------- ------- --------- ---------
Income from operations 2,256,404 633,202 3,360,993 1,759,671
Non-operating income (expense):
Financing costs (65,835) 40,716 (120,661) (46,435)
Interest income 1,037 3,471 2,656 6,855
Interest expense (44,687) (69,362) (104,692) (89,857)
Other income
(expense) (2,015) 43,123 (3,896) 76,221
Realized loss on
trading securities - (34,388) - (34,388)
Foreign exchange
gain (loss) (9,997) 274,319 (80,503) 345,926
-------- ------- -------- -------
Total non-operating
income
(expense) (121,497) 257,879 (307,096) 258,322
Income before income
tax 2,134,907 891,081 3,053,897 2,017,993
Income tax 420,031 312,937 682,147 624,303
--------- ------- --------- ---------
Net income 1,714,876 578,144 2,371,750 1,393,690
Other comprehensive income
Foreign currency
translation gain
(loss) (42,108) 358,640 (62,440) 937,590
---------- -------- ---------- ----------
Comprehensive Income $1,672,768 $936,784 $2,309,310 $2,331,280
========== ======== ========== ==========
Weighted average shares
outstanding :
Basic 10,813,206 7,847,853 10,408,604 7,847,853
========== ========= ========== =========
Diluted 10,853,083 7,847,853 10,438,480 7,847,853
========== ========= ========== =========
Earnings per share:
Basic $0.16 $0.07 $0.23 $0.18
===== ===== ===== =====
Diluted $0.16 $0.07 $0.23 $0.18
===== ===== ===== =====
DEER CONSUMER PRODUCTS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
Six Month Ended June 30,
------------------------
2009 2008
---- ----
(unaudited) (unaudited)
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $2,371,750 $1,393,690
Adjustments to reconcile net income to net cash
provided by (used in) operating activities:
Depreciation 707,567 520,861
Amortization 4,716 9,232
Foreign exchange (gain)/loss - (345,926)
Realized loss on short term investments - 34,388
(Increase) / decrease in assets:
Accounts receivable (3,177,512) (1,235,681)
Other receivables 68,397 (193,907)
Inventories (678,170) (1,831,539)
Due from related party 330,974 (3,413,338)
Advances to suppliers 1,980,585 345,291
Tax rebate receivable - 651,925
Other assets 20,792 (3,697)
Increase / (decrease) in current liabilities:
Accounts payable 211,143 3,710,793
Unearned revenue (847,621) (32,213)
Other payables 462,873 37,909
Due to related party (194,491) (784,380)
Accrued payroll 441,700 95,652
Tax and welfare payable 665,060 (79,745)
--------- ----------
Net cash provided by (used in) operating
activities 2,367,763 (1,120,685)
--------- ----------
CASH FLOWS FROM INVESTING ACTIVITIES
Acquisition of property and equipment (532) (245,122)
Acquisition (disposal) of intangible assets - 5,686
Construction in process (907,615) (536,404)
Changes in restricted cash 109,304 (121,221)
Sale of short-term investments 29,302 141,691
-------- --------
Net cash used in investing activities (769,541) (755,370)
-------- --------
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from issuance of notes payable 1,678,439 -
Repayments of notes payable - (29,116)
Proceeds from issuance of short term loans - 1,004,376
Proceeds from sale of common stock 2,678,000 -
Offering costs paid (338,892) -
Payment on notes short term loans (3,549,693) -
Change in advance to related party, net - (274,001)
------- -------
Net cash provided by financing activities 467,854 701,259
------- -------
Effect of exchange rate changes on cash and
cash equivalents (44,292) 66,154
------- ------
NET DECREASE IN CASH & CASH EQUIVALENTS 2,021,784 (1,108,642)
CASH & CASH EQUIVALENTS, BEGINNING BALANCE 2,782,026 1,511,545
--------- ---------
CASH & CASH EQUIVALENTS, ENDING BALANCE $4,803,810 $402,903
========== ========
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
Interest paid $102,024 $89,857
======== =======
Income taxes paid $440,315 $267,296
======== ========
