LAIYANG, China, May 17 /PRNewswire-Asia/ -- Jiangbo Pharmaceuticals, Inc. (OTC Bulletin Board: JGBO) ("Jiangbo" or the "Company"), a pharmaceutical company with its principal operations in the People's Republic of China, today announced financial results for the third quarter fiscal year 2010 ended March 31, 2010.
Third Quarter Highlights
-- Revenue was $25.6 million, a slight decrease of 0.6% year-over-year
-- Gross profit was $18.6 million, as compared to $18.9 million, and gross
margin was 72.7%, as compared to 73.4% in the year ago quarter
-- Operating income rose 3.1% to $13.7 million
-- GAAP net income was $15.2 million, or $1.33 per basic share, compared
$8.9 million or $0.86 per basic share a year ago
-- Excluding loss from discontinued operation, non-cash gain or loss
related to the change in fair value of derivative liabilities,
unrealized gain or loss on trading securities, and amortization
expenses for debt discount and financing cost, non-GAAP adjusted net
income was $7.7 million, or $0.50 per diluted share, as compared to
non-GAAP adjusted net income of $10.1 million, or $0.68 per diluted
share.
"Our third quarter operating income returned to growth as a result of strengthened sales effort and improved operational efficiency stemming from our continued cost control efforts," said Jiangbo's Chairman and CEO, Mr. Wubo Cao. "Sales of several of our key products, including Clarithromycin sustained-release and Radix Isatidis, experienced strong year-over-year growth and reflected the recent reinforcement of our sales effort and distribution channels. We continue to evaluate strategic opportunities to cost-effectively market our key products to deliver organic revenue growth in future quarters."
Third Quarter Fiscal Year 2010 Results
Total revenue for the three months ended March 31, 2010 was $25.6 million, compared to $25.7 million for the three months ended March 31, 2009. Sales volume for Clarithromycin sustained-released tablets grew 23.0% year-over-year as a result of the Company's reinforced sales efforts and tighter management of its distribution channels. Similarly, sales volume for Radix Isatidis dispersible tablets rose 44.7% over the prior year quarter. Strong sales growth of these two products was offset by a decline in sales volume for Itopride Hydrochloride granules and Baobaole chewable tablets, which were down 10.8% and 35.9%, respectively. Itopride and Baobaole continued to experience competition from similar products, including some that are included in the National Basic Medical Insurance Catalog. As the sales growth of OTC drugs, such as Baobaole chewable tablets and Radix Isatidis dispersible tablets, require continued support through advertising and promotion, management is evaluating the appropriate investment in TV advertising to drive the sales.
Gross profit in the third quarter was $18.6 million, as compared to $18.6 million in the prior year period. Gross margin decreased to 72.7% from 73.4%, primarily due to changes in the sales of product mix.
Selling, general and administrative expenses were $3.8 million for the three months ended March 31, 2010, down 15.1% from $4.5 million in the prior year period and primarily reflected the Company's more effective cost control efforts. Year-over-year spending reduction stemmed primarily from lower advertising, marketing and promotion, as well as salaries, wages and related benefits.
Research and development expenses totaled $1.1 million, consistent with those in the prior year period. The Company is obligated to make monthly payment to the designated university/institute to support two cooperative research and development agreements which were signed in fiscal 2008.
Income from operations rose 3.1% to $13.7 million from $13.3 million, primarily reflecting lower year-over-year operating expenses.
Other income was $5.0 million, as compared to other expenses of $1.1 million for the three months ended March 31, 2009. The increase was mainly due to an $11.6 million non-cash gain related to the change in the fair value of derivative liabilities, partly offset by $6.6 million interest expenses and non-cash amortization expense related to debt discount and debt issuance costs related to the convertible debentures, as compared to $1.2 million in the third quarter of 2009.
GAAP net income for the three months ended March 31, 2010 was $15.2 million, as compared to $8.9 million in the year ago quarter. Basic earnings per share (EPS) were $1.33, compared with $0.86 a year ago. Diluted EPS assumes the conversion of the Company's convertible notes and is calculated by adding interest expenses to and deducting the unamortized loan issuance costs and debt discount from net income. As a result, the Company recorded earnings of $0.02 per diluted share, as compared to a loss of $1.49 per diluted share in the same quarter last year.
Excluding loss from discontinued operation, non-cash gain or loss related to the change in fair value of derivative liabilities, unrealized gain or loss on trading securities, and amortization expenses for debt discount and financing cost, non-GAAP adjusted net income was $7.7 million, or $0.50 per diluted share, as compared to non-GAAP adjusted net income of $10.0 million, or $0.68 per diluted share a year ago.
Nine Month Results
Total revenue for the nine month period ended March 31, 2010 was $68.1 million, down 21.0% from $86.2 million for the nine month period ended March 31, 2009. The decrease was primarily due to a 26% average per unit sales price reduction year-over-year for Clarithromycin sustained-released tablets, Itopride Hydrochloride granules and Baobaole chewable tables during the first six months of fiscal year 2010, following restructuring of the Company's sales network in January 2009.
Gross profit totaled $50.2 million, down 24.4% from $66.5 million in the prior year period, representing a gross profit margin of 73.7%. Operating income was $33.5 million, a 4.6% increase year-over-year from $32.1 million last year.
GAAP net income was $22.7 million, or $2.07 basic EPS, as compared to $17.4 million, or $1.75 basic EPS in the corresponding period in 2009. Diluted EPS was $0.57 per share, as compared to a loss of $0.86 per share in the year ago period.
Excluding loss discontinued operation, non-cash gain or loss related to the change in fair value of derivative liabilities, unrealized gain or loss on trading securities, and amortization expenses for debt discount and financing costs, non-GAAP adjusted net income was $21.2 million, or $1.39 per fully diluted share for the nine months ended March 31, 2010, compared to non-GAAP adjusted net income of $23.5 million, or $1.64 per fully diluted share, for the nine months ended March 31, 2009.
Financial Condition
As of March 31, 2010, the Company had $96.5 million in cash and an additional $11.5 million in restricted cash, as compared to $104.4 million and $7.3 million, respectively, at the end of fiscal 2009. The decrease was mainly due to the late 2009 purchase of land use rights for a large parcel of land near Laiyang Jiangbo Pharmaceuticals for $17 million for future factory expansion. Working capital was $77.7 million at March 31, 2010 and $99.8 million at June 30, 2009.
Shareholder's equity was $124.2 million, as compared to $126.1 million at the end of fiscal 2009. The decrease in shareholder's equity was the result of the reclassification of the Company's derivative instruments from equity to liability. The Company generated $8.5 million in cash flows from operating activities in the first nine months of fiscal 2010.
The Company has continued a dialogue with holders of its November 2007 Notes and May 2008 Notes to find a mutually agreeable resolution regarding the delinquent interest payments. Jiangbo became delinquent on the payment of the interests due on the November 2007 Notes and May 2008 Notes due to continued delays in its ability to transfer cash out of the People's Republic of China (PRC). Pursuant to a certain Letter Agreement dated February 15, 2010 with holders of the November 2007 Notes and May 2008 Notes, the holders of such Notes had agreed to waive the outstanding default under the Notes as a result of the Company's failure to make timely interest payments on the Notes provided that the Company made the delinquent interest payments by February 25, 2010, and to date, remains unable to make these payments. Currently, $4.0 million aggregate principal amount of the November 2007 Notes and $22.9 million aggregate principal amount of the May 2008 Notes remains outstanding.
Guidance and Corporate Update
"We recognize the need to expand our commercial product portfolio and build a strong R&D pipeline to create sustainable long-term growth," added Mr. Cao. "As we continue to evaluate the best deployment of our cash for strategic product acquisition and licensing deals, we expect to continue improving our operational efficiency and to strengthen our operational management team to accelerate that effort."
The Company is maintaining its fiscal 2010 revenue guidance of $96 million to $98 million and operating income guidance of $42 million to $44 million. Management expects to continue to deploy its policy of engaging in cost-effective marketing of select key drugs and improving operational efficiency in the fourth quarter of fiscal 2010.
Renovation at the Hongrui's factory is continuing and is now expected to finish by early July 2010. The Company has increased the scope of this project to include additional repairs and upgrades to ensure the production facilities will, similar to the existing Jiangbo facility, conform to GMP standards.
With $96.5 million in cash, Jiangbo continues to actively evaluate opportunities to in-license or acquire new branded drugs with sustainable long-term growth potential.
Conference Call
Jiangbo Pharmaceuticals, Inc. management will host a conference call on Monday, May 17, 2010 at 7:00 a.m. Eastern Time to discuss financial results for the third quarter ended March 31, 2010. The conference call will include Mr. Wubo Cao, Chairman and CEO, and Ms. Elsa Sung, CFO, of Jiangbo. To participate in the live conference call, please dial the following number five to ten minutes prior to the scheduled conference call time: (877) 762-9219. International callers should dial +1 (706) 758 - 5465. The Conference ID for this call is 74532345.
If you are unable to participate in the call at this time, a replay will be available for 14 days starting on Monday, May 17, 2010 at 9:00 a.m. Eastern Time. To access the replay, dial (800) 642-1687, international callers dial (706) 645-9291. Conference ID is 74532345.
Use of Non-GAAP Adjusted Financial Information
This press release includes certain financial information, non-GAAP adjusted net income and non-GAAP adjusted fully diluted earnings per share, which are not presented in accordance with GAAP. Non-GAAP adjusted net income was derived by taking net income and adjusting it with non-cash gains or losses related to the change in fair value from derivative liabilities and the amortization of debt discount and debt issuance costs related to convertible debentures. The Company's management believes that these non-GAAP adjusted measures provide investors with a better understanding of the Company's historical results from its core business operations. To supplement the Company's condensed consolidated financial statements presented on a non-GAAP adjusted basis, the Company has provided non-GAAP adjusted financial information, which is non-GAAP adjusted net income and non-GAAP adjusted earnings per share, excluding the impact of these items in this press release. The non-GAAP adjusted information is not meant to be considered in isolation or as a substitute for GAAP financials. The non-GAAP adjusted financial information provided by the Company may also differ from non-GAAP adjusted information provided by other companies. A table at the end of this press release provides a reconciliation of the non-GAAP adjusted financial information to the nearest GAAP measure.
About Jiangbo Pharmaceuticals, Inc.
Jiangbo Pharmaceuticals, Inc. is a U.S. public company engaged in the research, development, production, marketing and sales of pharmaceutical products in the People's Republic of China. Its operations are located in Eastern China in an Economic Development Zone in Laiyang City, Shandong province. Jiangbo is a major pharmaceutical company in China producing both western and Chinese herbal-based medical drugs in tablet, capsule, granule, syrup and electuary (sticky syrup) form. http://www.jiangbopharma.com .
Safe Harbor Statement
Certain statements in this press release that are not historical facts are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements are not guarantees of future performance and are subject to risks and uncertainties that could cause the Company's actual results and financial position to differ materially from those included within the forward-looking statements. Forward-looking statements involve risks and uncertainties, including those relating to the Company's ability to introduce, manufacture and distribute new drugs, improve operational efficiency, in-license or acquire new drugs, make required interest payment and NASDAQ listing. Actual results may differ materially from predicted results, and reported results should not be considered as an indication of future performance. The potential risks and uncertainties include, among others, the Company's ability to obtain raw materials needed in manufacturing, the continuing employment of key employees, the failure risks inherent in testing any new drug, the possibility that regulatory approvals may be delayed or become unavailable, patent or licensing concerns that may include litigation, direct competition from other manufacturers and product obsolescence. More information about the potential factors that could affect the Company's business and financial results is included in the Company's filings, available via the United States Securities and Exchange Commission.
- Financial Statements Follow -
JIANGBO PHARMACEUTICALS, INC. AND SUBSIDIARIES
(FORMERLY KNOWN AS GENESIS PHARMACEUTICAL ENTERPRISES, INC.)
CONSOLIDATED BALANCE SHEETS
March 31, June 30,
2010 2009
(Unaudited)
ASSETS
CURRENT ASSETS:
Cash $96,464,482 $104,366,117
Restricted cash 11,523,285 7,325,000
Investments 26,362 879,228
Accounts receivable, net
of allowance for doubtful
accounts of $1,141,756 and
$822,469 as of March 31,
2010 and June 30, 2009,
respectively 27,619,639 19,222,707
Inventories 3,368,308 3,277,194
Other receivables 12,523 167,012
Other receivable - related
parties 242,055 --
Advances to suppliers 510,288 236,496
Financing costs - current 565,684 680,303
Total current assets 140,332,626 136,154,057
PLANT AND EQUIPMENT, net 13,437,640 13,957,397
OTHER ASSETS:
Restricted investments 161,471 1,033,463
Financing costs, net of current -- 556,365
Intangible assets, net 32,852,205 17,041,181
Total other assets 33,013,676 18,631,009
Total assets $186,783,942 $168,742,463
LIABILITIES AND SHAREHOLDERS'
EQUITY
Accounts payable $2,227,240 $6,146,497
Short term bank loans 2,200,500 2,197,500
Notes payable 11,523,285 7,325,000
Other payables 2,880,338 2,152,063
Refundable security deposits
due to distributors 3,080,700 4,102,000
Other payables - related
parties 951,461 238,956
Accrued liabilities 4,045,510 1,356,898
Liabilities assumed from
reorganization 536,614 1,565,036
Taxes payable 4,952,356 11,248,226
Derivative Liabilities 20,074,873 --
Convertible debt, net of
discount $17,083,153 as
of March, 31, 2010 10,146,847 --
Total current liabilities 62,619,724 36,332,176
CONVERTIBLE DEBT, net of
discount $28,493,089 as of
June 30, 2009 -- 6,346,911
Total liabilities 62,619,724 42,679,087
COMMITMENTS AND CONTINGENCIES
SHAREHOLDERS' EQUITY:
Convertible preferred stock
Series A ($0.001 par value;
0 shares issued and
outstanding as of March 31,
2010 and June 30, 2009) -- --
Common stock ($0.001 par value,
22,500,000 and 15,000,000
shares authorized, 11,474,802
and 10,435,099 shares issued
and outstanding as of March
31, 2010 and June 30, 2009,
respectively) 11,475 10,435
Paid-in-capital 28,488,749 48,397,794
Capital contribution
receivable (11,000) (11,000)
Retained earnings 85,611,586 67,888,667
Statutory reserves 3,253,878 3,253,878
Accumulated other
comprehensive income 6,809,530 6,523,602
Total shareholders'
equity 124,164,218 126,063,376
Total liabilities and
shareholders' equity $186,783,942 $168,742,463
JIANGBO PHARMACEUTICALS, INC. AND SUBSIDIARIES
(FORMERLY KNOWN AS GENESIS PHARMACEUTICAL ENTERPRISES, INC.)
CONSOLIDATED STATEMENTS OF INCOME AND OTHER COMPREHENSIVE INCOME
FOR THE THREE AND NINE MONTHS ENDED MARCH 31, 2010 AND 2009
(UNAUDITED)
For the Three Months Ended For the Nine Months Ended
March 31, March 31,
2010 2009 2010 2009
REVENUES:
Sales $ 25,571,389 $25,725,837 $68,135,385 $ 85,991,330
Sales - related
parties -- -- -- 243,943
Total revenues 25,571,389 25,725,837 68,135,385 86,235,273
COST OF SALES
Cost of sales 6,974,455 6,853,810 17,901,903 19,705,020
Cost of sales
- related
parties -- -- -- 54,500
Total cost of
sales 6,974,455 6,853,810 17,901,903 19,759,520
GROSS PROFIT 18,596,934 18,872,027 50,233,482 66,475,753
RESEARCH AND
DEVELOPMENT EXPENSE 1,093,440 1,098,675 3,299,400 3,295,125
SELLING, GENERAL AND
ADMINISTRATIVE
EXPENSES 3,799,136 4,477,356 13,400,155 31,111,752
INCOME FROM
OPERATIONS 13,704,358 13,295,996 33,533,927 32,068,876
OTHER (INCOME)
EXPENSE:
Change in fair
value of
derivative
liabilities (11,624,079) -- (13,490,071) --
Other income
- related
parties (80,652) (76,552) (241,956) (313,276)
Non-operating
(income)
expense 5,790 (131,104) 220,061 1,062,488
Interest
expense, net 6,643,163 1,241,843 15,562,981 4,143,968
Loss from
discontinued
operations 36,000 103,008 200,769 1,693,830
Total other
income (expense),
net (5,019,778) 1,137,195 2,251,784 6,587,010
INCOME BEFORE
PROVISION FOR
INCOME TAXES 18,724,136 12,158,801 31,282,143 25,481,866
PROVISION FOR
INCOME TAXES 3,539,870 3,302,953 8,618,061 8,093,320
NET INCOME 15,184,266 8,855,848 22,664,082 17,388,546
OTHER COMPREHENSIVE
INCOME:
Unrealized
holding gain
(loss) 32,164 (200,025) 88,535 (2,147,642)
Foreign currency
translation
adjustment 509 (201,173) 197,393 378,284
COMPREHENSIVE
INCOME $ 15,184,775 $ 8,654,650 $22,950,010 $15,619,188
BASIC WEIGHTED
AVERAGE NUMBER
OF SHARES 11,419,991 10,277,762 10,965,346 9,937,189
BASIC EARNINGS
PER SHARE $ 1.33 $ 0.86 $ 2.07 $ 1.75
DILUTED WEIGHTED
AVERAGE NUMBER
OF SHARES 15,235,811 14,632,762 15,234,156 14,305,589
DILUTED EARNINGS
PER SHARE $ 0.02 $ (1.49) $ 0.57 $ (0.86)
JIANGBO PHARMACEUTICALS, INC. AND SUBSIDIARIES
(FORMERLY KNOWN AS GENESIS PHARMACEUTICAL ENTERPRISES, INC.)
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY
Common Stock
Par Value $0.001 Capital
Number Paid-in contribution
of shares Amount capital receivable
BALANCE, June 30, 2008 $9,767,844 $9,770 $45,554,513 $(11,000)
Shares issued for
adjustments for 1:40
reverse split 1,104 -- -- --
Cancellation of
common stock for
settlement @ $8
per share (2,500) (2) (19,998) --
Common stock issued
for service @ $8
per share 2,500 2 19,998 --
Common stock issued
for service @ $9
per share 2,500 2 22,498 --
Common stock issued
to Hongrui @ $4.035
per share 643,651 643 2,596,488 --
Conversion of
convertible debt
to stock 20,000 20 159,980 --
Stock based
compensation -- -- 64,315 --
Net income
Adjustment to
statutory reserve
Change in fair value
on restricted
marketable equity
securities -- -- -- --
Foreign currency
translation gain
BALANCE, June 30, 2009 $10,435,099 $10,435 $48,397,794 $(11,000)
Cumulative effect
of reclassification
of warrants -- -- (34,971,570) --
BALANCE, July 1, 2009
as adjusted 10,435,099 10,435 13,426,224 (11,000)
Common stock issued
for payment for other
payable-related
party @ $8.75 per
share 2,286 2 19,998 --
Common stock issued
for services @
$8.75 per share 1,143 1 9,999 --
Common stock issued
for services @ $9.91
per share 1,009 1 9,999 --
Common stock issued
for interest
payment @ $8 per
share 84,015 85 990,968 --
Conversion of
convertible debt
to stock 951,250 951 7,609,049 --
Reclassification
of derivative
liabilities to
APIC due to
conversion of
convertible debt -- -- 6,287,408 --
Stock based
compensation -- -- 135,104 --
Net income
Change in fair value
on restricted
marketable equity
securities
Foreign currency
translation gain -- -- -- --
BALANCE, March 31, 2010
(Unaudited) 11,474,802 11,475 28,488,749 (11,000)
Accumulated
Retained Earnings other
Statutory Unrestricted comprehensive
reserves earnings income Totals
BALANCE, June 30, 2008 $3,253,878 $39,008,403 $7,700,905 $95,516,469
Shares issued for
Adjustments for
1:40 reverse
split -- -- -- --
Cancellation of
common stock for
settlement @ $8
per share -- -- -- (20,000)
Common stock
issued for
service @ $8
per share -- -- -- 20,000
Common stock
issued for
service @ $9
per share -- -- -- 22,500
Common stock
issued to
Hongrui @
$4.035 per
share -- -- -- 2,597,131
Conversion of
convertible
debt to stock -- -- -- 160,000
Stock based
compensation -- -- -- 64,315
Net income -- 28,880,264 -- 28,880,264
Adjustment to
statutory reserve -- -- -- --
Change in fair
value on restricted
marketable equity
securities -- -- (1,514,230) (1,514,230)
Foreign currency
translation gain -- -- 336,927 336,927
BALANCE, June 30, 2009 $3,253,878 $67,888,667 $6,523,602 $126,063,376
Cumulative effect
of reclassification
of warrants -- (4,941,163) -- (39,912,733)
BALANCE, July 1, 2009
as adjusted 3,253,878 62,947,504 6,523,602 86,150,643
Common stock issued
for payment for
other payable-
related party @
$8.75 per share -- -- -- 20,000
Common stock issued
for services @
$8.75 per share -- -- -- 10,000
Common stock issued
for services @
$9.91 per share -- -- -- 10,000
Common stock issued
for interest
payment @ $8 per
share -- -- -- 991,053
Conversion of
convertible debt
to stock -- -- -- 7,610,000
Reclassification of
derivative liabilities
to APIC due to
conversion of
convertible debt -- -- -- 6,287,408
Stock based
compensation -- -- -- 135,104
Net income -- 22,664,082 -- 22,664,082
Change in fair value
on restricted
marketable equity
securities -- -- 88,535 88,535
Foreign currency
translation
gain -- -- 197,393 197,393
BALANCE, March 31, 2010
(Unaudited) 3,253,878 85,611,586 6,809,530 124,164,218
JIANGBO PHARMACEUTICALS, INC. AND SUBSIDIARIES
(FORMERLY KNOWN AS GENESIS PHARMACEUTICAL ENTERPRISES, INC.)
CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR NINE MONTHS ENDED MARCH 31, 2010 AND 2009
(Unaudited)
2010 2009
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $ 22,664,082 $ 17,388,546
Loss from discontinued operations 200,769 1,693,830
Income from continuing operations 22,864,851 19,082,376
Adjustments to reconcile net income
to net cash, net of acquisition,
provided by operating activities:
Depreciation 615,565 464,094
Amortization of intangible
assets 1,194,331 371,925
Amortization of deferred debt
issuance costs 670,984 510,227
Amortization of debt discount 11,409,936 2,679,526
Loss from issuance of shares in
lieu of cash interest payment 318,936 --
Interest expense payment of
shares in lieu of cash 4,457 --
Bad debt expense 446,257 368,840
Realized (gain) loss on marketable
securities 406,346 (106,865)
Unrealized (gain) loss on
marketable securities (270,339) 1,255,522
Other non-cash settlement -- (20,000)
Change in fair value of
derivative liabilities (13,490,071) --
Stock-based compensation 155,104 43,340
Changes in operating assets
and liabilities
Accounts receivable (8,813,521) 2,353,566
Accounts receivable - related
parties -- 488,646
Inventories (86,604) 205,471
Other receivables 154,654 63,170
Other receivables - related
parties (241,956) (317,303)
Advances to suppliers and other
assets (273,373) 1,602,693
Accounts payable (3,926,015) 3,171,180
Customer deposit (1,026,480) 4,100,600
Other payables 725,041 194,283
Other payables - related
parties 712,114 (58,580)
Accrued liabilities 3,338,193 682,145
Liabilities assumed from
reorganization (95,384) (1,164,323)
Taxes payable (6,308,625) 5,107,831
Net cash provided by
operating activities 8,484,399 41,078,364
CASH FLOWS FROM INVESTING ACTIVITIES:
Cash used in acquisition -- (8,581,970)
Proceeds from sale of marketable
securities 531,750 167,623
Purchase of equipment (76,977) (130,814)
Purchase of land use right (16,975,633) --
Net cash used in investing
activities (16,520,860) (8,545,161)
CASH FLOWS FROM FINANCING ACTIVITIES:
Change in restricted cash (4,186,572) 4,149,305
Proceeds from bank loans 2,199,600 2,196,750
Payments for bank loans (2,199,600) (2,782,550)
Proceeds from notes payable 19,173,180 7,009,097
Principal payments on notes payable (14,986,608) (9,161,912)
Net cash (used in) provided
by financing activities -- 1,410,690
EFFECTS OF EXCHANGE RATE CHANGE IN CASH 134,826 198,836
INCREASE (DECREASE) IN CASH (7,901,635) 34,142,729
CASH, beginning 104,366,117 48,195,798
CASH, ending $ 96,464,482 $ 82,338,527
SUPPLEMENTAL DISCLOSURES OF CASH
FLOW INFORMATION:
Cash paid for Interest $ 393,111 $ 1,130,837
Cash paid for Income taxes $ 2,631,495 $ 4,883,039
Non-cash investing and financing
activities:
Common stock issued to acquire
Hongrui $ -- $ 2,597,132
Common stock issued for stock
based compensation $ 20,000 --
Common stock issued to offset
related party payable $ 20,000 --
Common stock issued for
interest payment $ 673,929 $ --
Common stock issued for
convertible notes conversion $ 7,610,000 $ --
Marketable securities used to
settle for liabilities assumed
from reorganization $ 1,133,807 $ --
Derivative liability reclassified
to equity upon conversion $ 6,287,408 $ --
RECONCILIATION OF NON-GAAP NET INCOME AND DILUTED EPS
For Three Months For Nine Months
Ended March 31 Ended March 31
2010 2009 2010 2009
Net Income $15,184,265 $8,855,848 $22,664,082 $17,388,546
Loss from discontinued
operations 36,000 103,008 200,769 1,693,830
Unrealized loss (gain) on
trading securities,
net (4,592) (204,134) (270,339) 1,255,522
Loss (gain) in fair value of
derivative
liabilities (11,624,079) -- (13,490,071) --
Amortization of debt
discount and debt
issuance costs related to
convertible
debentures 4,060,333 1,203,365 12,080,920 3,189,752
Adjusted Net Income $7,651,927 $9,958,087 $21,185,361 $23,527,650
Diluted Weighted Average
Number of
Shares** 15,235,811 14,632,762 15,234,156 14,305,589
Adjusted Diluted Earnings
per Share $ 0.50 $ 0.68 $ 1.39 $ 1.64
** Including outstanding options and warrants using treasury method of
calculation plus the number of shares if converted from
the convertible debt
For more information, please contact:
Jiangbo Pharmaceuticals, Inc.
Ms. Elsa Sung, CFO
Phone: +1-954-903-9378 x2
Email: elsasung@jiangbo.com
Web: http://www.jiangbopharma.com
CCG Investor Relations
Ms. Lei Huang, Account Manager
Phone: +1-646-833-3417
Email: lei.huang@ccgir.com
Web: http://www.ccgirasia.com
Mr. Crocker Coulson, President
Phone: +1-646-213-1915
Email: crocker.coulson@ccgir.com