omniture

Rodobo International, Inc. Reports Second Quarter 2011 Results

2011-05-16 16:14 1882

Second Quarter revenues increased 67.1% year-over-year to a record $25.6 million


HARBIN, China, May 16, 2011 /PRNewswire-Asia-FirstCall/ -- Rodobo International, Inc. (the "Company" or "Rodobo") (OTC Bulletin Board: RDBO), a fast growing dairy company in China, reported financial results for the second quarter ended March 31, 2011.

Second Quarter 2011 Highlights:

  • Revenue was $25.6 million, up 67.1% from $15.3 million in 2Q10, close to the upper range of the Company's 2Q11 guidance  $23 - $26 million
  • Gross profit was $9.7 million, up 62.1% from $6.0 million in 2Q10
  • Net income was $3.8 million, up 77.0% from non-GAAP net income of $2.2 million in 2Q10, outperforming 2Q11 guidance range of $3.3 - $3.6 million
  • Earnings per diluted share was $0.14, up from non-GAAP earnings per share of $0.10 in 2Q10
Third Quarter 2011 Guidance:

Management feels confident to give its guidance for the third quarter of 2011 for revenue to be in the range of $23 - $26 million and net income to be in the range of $3.5 - $3.8 million.

"We are pleased to report another quarter of record revenue and strong profitability. It is our sixth consecutive top line growth quarter," stated Mr. Yanbin Wang, Chairman and Chief Executive Officer. "During the quarter, we focused on enhancing product quality by refurnishing the testing laboratory and production facilities with more advanced testing instruments and production equipment in compliance with the new regulations promulgated by the Chinese government in November 2010, consequently, we received the production license renewal in March.   We believe that the license renewal was an important milestone for Rodobo as it demonstrates that our consistent efforts on quality control have been well recognized by the Chinese government even with the government's increasing scrutiny of the infant milk powder industry. We will continue to focus on preserving the trust of the government and our customers in the future by continuing to provide Rodobo's high quality and nutritious milk powder products to our customers."

Second Quarter 2011 Financial Results

Net sales for the second quarter of 2011 were $25.6 million, an increase of approximately $10.3 million or 67.1%, compared to net sales for the second quarter of 2010. This increase was partially driven by the increasing sales from "Rubao" series of products launched in October 2010, which is our enhanced product line sold under our "Rodobo" brand series of products. The Rubao product line contributed $2.8 million of sales for the three months ended March 31, 2011. The increase in net sales was also attributed to our continued efforts to develop distribution networks and expand the market areas in the 9 provinces in which we currently sell our products.

During the quarter, sales generated from baby/infant formula, middle-aged and elderly formula and whole milk powder accounted for 43.4%, 14.6% and 42.0% of total sales, respectively. In the same period in 2010, sales generated from baby/infant formula, middle-aged and elderly formula and whole milk powder accounted for 50.2%, 5.8% and 44.0% of total sales, respectively.

Gross profit increased approximately $3.7 million for the second quarter of 2011, an increase of 62.1% compared to the gross profit for the same period of 2010. The overall gross profit margin decreased slightly from 39.2% for the second quarter of 2010 to 38.0% for the same quarter of 2011.  

Operating expenses for the second quarter of 2011 were $6.1 million, an increase of approximately $2.3 million or 59.4% compared to the second quarter of 2010. Operating expenses as a percentage of net sales decreased from 25.0% in the second quarter of 2010 to 23.8% in the second quarter of 2011.

Distribution expenses increased by approximately $2.4 million, an increase of 83.2% compared with the figure for the same period of 2010. The increase was mainly due to an increase of $1.9 million in distribution expense reimbursements as a result of sales increases and market expansion. 

Net income for the second quarter of 2011 was $3.8 million, remained flat compared with the second quarter of 2010. Excluding the non-recurring gain on bargain purchase of $1.7 million in connection with the acquisitions completed on February 5, 2010, the net income would have increased by $1.7 million or 77.0% for the second quarter of 2011 compared with non-GAAP net income in the second quarter of 2010.

Fully-diluted earnings per share for the second quarter of 2011 was $0.14, compared to fully-diluted earnings per share of $0.18 in the second quarter of 2010. Non-GAAP fully-diluted earnings per share for the second quarter of 2010 was $0.10.

Six Month Results

For the six months ended March 31, 2011, net sales increased to $51.2 million, up 101.6% from $25.4 million in the six months ended March 31, 2010. Gross profit increased 72.8% in the six months ended March 31, 2011 to $19.5 million from $11.3 million in the comparable period in 2010. Gross margin was 38.1% in the six months ended March 31, 2011, compared to 44.5% in the comparable period in 2010. Net income for the six months ended March 31, 2011 was $7.9 million or $0.29 per fully diluted share, up 29.6% from $6.1 million, or $0.32 per fully diluted share, in the comparable period in 2010. Excluding the non-recurring gain on bargain purchase of $1.7 million in connection with the acquisitions completed on February 5, 2010, the net income in the first six month of 2011 would have increased 78.6% compared with non-GAAP net income in the comparable period in 2010. Non- GAAP fully- diluted earnings per share for the six months ended March 31, 2010 was $0.23.

Financial Condition

As of March 31, 2011, Rodobo had $5.5 million in cash and cash equivalents, $6.4 million in current liabilities and no long-term debt. Shareholders' equity was $71.0 million as of March 31, 2011, up from $61.0 million as of September 30, 2010. Net cash from operating activities during the six months ended March 31, 2011 was $8.3 million, compared with $6.3 million in the six months ended March 31, 2010.

Conference Call Information

Management will conduct a conference call at 9:00 A.M. Eastern Time, on May 17, 2011. To participate in the live conference call, please dial the following number five or ten minutes prior to the scheduled conference call time: (866) 393-8606. International callers should dial +1-(706) 643-9902. When prompted by the operator, mention Conference ID number 67460359. If you are unable to participate in the call at this time, a replay will be available on Tuesday, May 17, 2011 at 12:00 p.m. Eastern Time, through May 31, 2011. To access the replay dial (800) 642-1687 or (706) 645-9291, and enter the passcode 67460359. Additionally, a live webcast will be available at http://us.meeting-stream.com/rodobointernationalinc_051711.

Use of Non-GAAP Financial Measures

To supplement our condensed consolidated financial statements presented on a GAAP basis, in this press release we are providing certain income statement information that is not calculated according to GAAP.  We believe that this non-GAAP information is useful in evaluating our operating results as the information supplies our investors with another view of the matching of costs and expenses.  A reconciliation of the adjustments to GAAP results for the three months ended March 31, 2011 and March 31, 2010 is included below.  This non-GAAP financial information approximates information used by our management to internally evaluate our operating results. The non-GAAP information presented is supplemental and shall be considered in addition to, not as a substitute for, the financial information provided and presented in accordance with GAAP.

Non-GAAP financial results for the three months ended March 31, 2010 discussed in this release reflect operating results excluding the impact of the non-recurring gain on bargain purchase of $1.7 million received by us in connection with the acquisitions completed on February 5, 2010.

About Rodobo International, Inc.

Rodobo International, Inc. is a producer and distributor of powdered milk formula products in the People's Republic of China ("PRC" or "China"). Our target consumers include infants, children, the middle-aged and the elderly in China. Our products for infants and children are currently sold under the brand names of "Rodobo" and "Peer", and its products for middle-aged and elderly consumers are currently sold under the brand name of "Healif".

Safe Harbor Statement

This press release and the statements of representatives of Rodobo International, Inc., and its consolidated subsidiaries (collectively, the "Company") related thereto contain, or may contain, among other things, "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. All statements, other than statements of historical fact included herein are "forward-looking statements," including statements regarding: the impact of the recent acquisitions on the business and operations of the Company; the ability of the Company to achieve its commercial objectives including increased growth, revenues, earnings, and production capacity; the business strategy, plans and objectives of the Company; and any other statements of non-historical information. These forward-looking statements are subject to significant known and unknown risks and uncertainties and are often identified by the use of forward-looking terminology such as "projects," "may," "could," "would," "should," "believes," "expects," "anticipates," "estimates," "intends," "plans" or similar expressions. Although the Company believes that the expectations reflected in these forward-looking statements are reasonable, they do involve assumptions, risks and uncertainties, and these expectations may prove to be incorrect. Investors should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company's actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of factors, including those discussed in the periodic reports that are filed with the Securities and Exchange Commission and available on its website (http://www.sec.gov). All forward-looking statements attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by these factors. The Company undertakes no duty to update these forward-looking statements except as required by law.

For additional information, please contact:

Xiuzhen Qiao
Rodobo International Inc
Tel:    +86-10-6216-6032
Email: qiaozhen1973@163.com

 

 

Stephen Tong
Rodobo International, Inc.
Tel:   +86-10-6216-6396
Email: tongzijian@gmail.com

 

 

 



RODOBO INTERNATIONAL, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(UNAUDITED)


 

 

 

 

March 31,

 

 

 

September 30,

 

 

 

 

 

2011

 

 

 

2010

 

 

 

ASSETS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

 

 

      Cash and cash equivalents

 

 

$

 

5,540,856

 

 

 

$

 

5,163,789

 

 

 

      Accounts receivable, net

 

 

 

8,437,636

 

 

 

 

8,085,248

 

 

 

      Inventories

 

 

 

3,169,944

 

 

 

 

1,523,422

 

 

 

      Prepaid expenses

 

 

 

462,898

 

 

 

 

114,215

 

 

 

      Advances to suppliers

 

 

 

690,001

 

 

 

 

969,369

 

 

 

 

 

 

 

 

 

 

 

 

 

            Total current assets

 

 

 

18,301,335

 

 

 

 

15,856,043

 

 

 

 

 

 

 

 

 

 

 

 

 

Property, plant and equipment:

 

 

 

 

 

 

 

 

 

 

      Fixed assets, net of accumulated depreciation

 

 

 

22,330,472

 

 

 

 

19,575,890

 

 

 

      Construction in progress

 

 

 

26,449,165

 

 

 

 

22,701,594

 

 

 

 

 

 

 

 

 

 

 

 

 

           Total property, plant and equipment, net

 

 

 

48,779,637

 

 

 

 

42,277,484

 

 

 

 

 

 

 

 

 

 

 

 

 

Biological assets, net

 

 

 

5,233,739

 

 

 

 

3,295,508

 

 

 

 

 

 

 

 

 

 

 

 

 

Other assets:

 

 

 

 

 

 

 

 

 

 

      Deposits on land

 

 

 

76,352

 

 

 

 

74,726

 

 

 

      Intangible assets, net

 

 

 

9,664,585

 

 

 

 

10,440,131

 

 

 

 

 

 

 

 

 

 

 

 

 

            Total other assets

 

 

 

9,740,937

 

 

 

 

10,514,857

 

 

 

 

 

 

 

 

 

 

 

 

 

            Total Assets

 

 

$

 

82,055,648

 

 

 

$

 

71,943,892

 

 

 

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS' EQUITY

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

 

 

 

 

      Short-term loans

 

 

$

 

1,717,924

 

 

 

$

 

1,218,025

 

 

 

      Accounts payable

 

 

 

2,856,381

 

 

 

 

1,457,624

 

 

 

      Other payable

 

 

 

141,905

 

 

 

 

723,015

 

 

 

      Accrued expenses

 

 

 

434,183

 

 

 

 

588,011

 

 

 

      Advance from customers

 

 

 

30,541

 

 

 

 

-

 

 

 

      Due to related parties

 

 

 

1,185,062

 

 

 

 

1,491,616

 

 

 

 

 

 

 

 

 

 

 

 

 

            Total current liabilities

 

 

 

6,365,996

 

 

 

 

5,478,291

 

 

 

 

 

 

 

 

 

 

 

 

 

Warrant liability

 

 

 

638,176

 

 

 

 

1,414,316

 

 

 

 

 

 

 

 

 

 

 

 

 

Series A preferred stock, $0.0001 par value, 30,000,000 shares authorized, 2,000,000

 

 

 

 

 

 

 

shares issued and outstanding as of March 31, 2011 and September 30, 2010

 

 

 

4,100,000

 

 

 

 

4,100,000

 

 

 

 

 

 

 

 

 

 

 

 

 

Stockholders' equity

 

 

 

 

 

 

 

 

 

 

      Common stock, $0.0001 par value, 200,000,000 shares authorized, 28,008,600 and 28,003,726 shares

 

 

 

      issued and outstanding as of March 31, 2011 and September 30, 2010, respectively

 

 

 

2,801

 

 

 

 

2,800

 

 

 

      Additional paid in capital

 

 

 

30,941,948

 

 

 

 

30,344,724

 

 

 

      Additional paid in capital - warrants

 

 

 

971,788

 

 

 

 

971,788

 

 

 

      Subscription receivable

 

 

 

(50,000)

 

 

 

 

(50,000)

 

 

 

      Retained earnings

 

 

 

35,514,538

 

 

 

 

27,588,952

 

 

 

      Accumulated other comprehensive income

 

 

 

3,570,401

 

 

 

 

2,093,022

 

 

 

 

 

 

 

 

 

 

 

 

 

 



RODOBO INTERNATIONAL, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME

(UNAUDITED)


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For The Three Months Ended

March 31,

 

 

 

For The Six Months Ended

March 31,

 

 

 

 

 

 

2011

 

 

 

2010

 

 

 

2011

 

 

 

2010

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net sales

 

 

$

 

25,623,364

 

 

 

$

 

15,330,579

 

 

 

$

 

51,209,824

 

 

 

$

 

25,406,025

 

 

 

Cost of goods sold

 

 

 

15,885,295

 

 

 

 

9,324,276

 

 

 

 

31,685,522

 

 

 

 

14,104,575

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross profit

 

 

 

9,738,069

 

 

 

 

6,006,303

 

 

 

 

19,524,302

 

 

 

 

11,301,450

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Distribution expenses

 

 

 

5,215,578

 

 

 

 

2,846,944

 

 

 

 

10,513,189

 

 

 

 

5,433,116

 

 

 

General and administrative expenses

 

 

 

886,280

 

 

 

 

980,105

 

 

 

 

1,718,598

 

 

 

 

1,702,986

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total operating expenses

 

 

 

6,101,859

 

 

 

 

3,827,049

 

 

 

 

12,231,787

 

 

 

 

7,136,102

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating income

 

 

 

3,636,210

 

 

 

 

2,179,254

 

 

 

 

7,292,515

 

 

 

 

4,165,348

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Subsidy income

 

 

 

-

 

 

 

 

-

 

 

 

 

-

 

 

 

 

273,897

 

 

 

Gain on bargain purchase

 

 

 

-

 

 

 

 

1,677,020

 

 

 

 

-

 

 

 

 

1,677,020

 

 

 

Interest expenses

 

 

 

(53,415)

 

 

 

 

(25,563)

 

 

 

 

(215,838)

 

 

 

 

(25,563)

 

 

 

Change in fair value of warrants

 

 

 

258,023

 

 

 

 

-

 

 

 

 

776,140

 

 

 

 

-

 

 

 

Other income

 

 

 

7,601

 

 

 

 

20,499

 

 

 

 

72,769

 

 

 

 

22,889

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income before income taxes

 

 

 

3,848,419

 

 

 

 

3,851,210

 

 

 

 

7,925,586

 

 

 

 

6,113,591

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Provision for income taxes

 

 

 

-

 

 

 

 

-

 

 

 

 

-

 

 

 

 

-

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income

 

 

$

 

3,848,419

 

 

 

$

 

3,851,210

 

 

 

$

 

7,925,586

 

 

 

$

 

6,113,591

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other comprehensive income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Foreign currency translation adjustment

 

 

 

583,631

 

 

 

 

9,230

 

 

 

 

1,477,379

 

 

 

 

7,046

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Comprehensive income

 

 

$

 

4,432,051

 

 

 

$

 

3,860,440

 

 

 

$

 

9,402,965

 

 

 

$

 

6,120,637

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings per share

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

$

 

0.14

 

 

 

$

 

0.18

 

 

 

$

 

0.29

 

 

 

$

 

0.34

 

 

 

Diluted

 

 

$

 

0.14

 

 

 

$

 

0.18

 

 

 

$

 

0.29

 

 

 

$

 

0.32

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average shares outstanding

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

 

27,331,855

 

 

 

 

21,043,725

 

 

 

 

27,331,116

 

 

 

 

18,096,169

 

 

 

Diluted

 

 

 

27,845,391

 

 

 

 

21,731,834

 

 

 

 

27,795,225

 

 

 

 

18,907,912

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



RODOBO INTERNATIONAL, INC. AND SUBSIDIARIES

NON-GAAP CONSOLIDATED STATEMENTS OF INCOME AND OTHER COMPREHENSIVE INCOME

(UNAUDITED)


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For The Three Months Ended

March 31,

 

 

 

For The Six Months Ended

March 31,

 

 

 

 

 

 

2011

 

 

 

2010

 

 

 

2011

 

 

 

2010

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net sales

 

 

$

 

25,623,364

 

 

 

$

 

15,330,579

 

 

 

$

 

51,209,824

 

 

 

$

 

25,406,025

 

 

 

Cost of goods sold

 

 

 

15,885,295

 

 

 

 

9,324,276

 

 

 

 

31,685,522

 

 

 

 

14,104,575

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross profit

 

 

 

9,738,069

 

 

 

 

6,006,303

 

 

 

 

19,524,302

 

 

 

 

11,301,450

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Distribution expenses

 

 

 

5,215,578

 

 

 

 

2,846,944

 

 

 

 

10,513,189

 

 

 

 

5,433,116

 

 

 

General and administrative expenses

 

 

 

886,280

 

 

 

 

980,105

 

 

 

 

1,718,598

 

 

 

 

1,702,986

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total operating expenses

 

 

 

6,101,859

 

 

 

 

3,827,049

 

 

 

 

12,231,787

 

 

 

 

7,136,102

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating income

 

 

 

3,636,210

 

 

 

 

2,179,254

 

 

 

 

7,292,515

 

 

 

 

4,165,348

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Subsidy income

 

 

 

-

 

 

 

 

-

 

 

 

 

-

 

 

 

 

273,897

 

 

 

Interest expenses

 

 

 

(53,415)

 

 

 

 

(25,563)

 

 

 

 

(215,838)

 

 

 

 

(25,563)

 

 

 

Change in fair value of warrants

 

 

 

258,023

 

 

 

 

-

 

 

 

 

776,140

 

 

 

 

-

 

 

 

Other income

 

 

 

7,601

 

 

 

 

20,499

 

 

 

 

72,769

 

 

 

 

22,889

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income before income taxes

 

 

 

3,848,419

 

 

 

 

2,174,190

 

 

 

 

7,925,586

 

 

 

 

4,436,571

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Provision for income taxes

 

 

 

-

 

 

 

 

-

 

 

 

 

-

 

 

 

 

-

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income

 

 

$

 

3,848,419

 

 

 

$

 

2,174,190

 

 

 

$

 

7,925,586

 

 

 

$

 

4,436,571

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other comprehensive income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Foreign currency translation adjustment

 

 

 

583,631

 

 

 

 

9,230

 

 

 

 

1,477,379

 

 

 

 

7,046

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Comprehensive income

 

 

$

 

4,432,051

 

 

 

$

 

2,183,420

 

 

 

$

 

9,402,965

 

 

 

$

 

4,443,617

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings per share

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

$

 

0.14

 

 

 

$

 

0.10

 

 

 

$

 

0.29

 

 

 

$

 

0.25

 

 

 

Diluted

 

 

$

 

0.14

 

 

 

$

 

0.10

 

 

 

$

 

0.29

 

 

 

$

 

0.23

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average shares outstanding

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

 

27,331,855

 

 

 

 

21,043,725

 

 

 

 

27,331,116

 

 

 

 

18,096,169

 

 

 

Diluted

 

 

 

27,845,391

 

 

 

 

21,731,834

 

 

 

 

27,795,225

 

 

 

 

18,907,912

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



RODOBO INTERNATIONAL, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(UNAUDITED)


 

 

 

 

For The Six Months Ended March 31,

 

 

 

 

 

2011

 

 

 

2010

 

 

 

Cash flows from operating activities

 

 

 

 

 

 

 

 

    Net income

 

 

$

 

7,925,586

 

 

 

$

 

6,113,591

 

 

 

    Adjustments to reconcile net income to net cash provided by operating activities

 

 

 

 

 

 

 

 

 

 

        Depreciation and amortization

 

 

 

1,769,927

 

 

 

 

1,215,529

 

 

 

        Stock-based compensation

 

 

 

597,226

 

 

 

 

696,809

 

 

 

        Gain on bargain purchase

 

 

 

-

 

 

 

 

(1,677,020)

 

 

 

        Change in fair value of warrants

 

 

 

(776,140)

 

 

 

 

-

 

 

 

    Changes in assets and liabilities:

 

 

 

 

 

 

 

 

 

 

    (Increase) decrease in -

 

 

 

 

 

 

 

 

 

 

        Accounts receivable, net

 

 

 

(128,933)

 

 

 

 

(2,664,291)

 

 

 

        Inventories

 

 

 

(1,594,252)

 

 

 

 

742,046

 

 

 

        Prepaid expenses

 

 

 

(397,275)

 

 

 

 

(26,289)

 

 

 

        Advances to suppliers

 

 

 

297,313

 

 

 

 

1,500,731

 

 

 

    Increase (decrease) in -

 

 

 

 

 

 

 

 

 

 

        Accounts payable and other payable

 

 

 

724,228

 

 

 

 

1,504,910

 

 

 

        Accrued expenses

 

 

 

(110,961)

 

 

 

 

(500,152)

 

 

 

        Advance from customers

 

 

 

30,220

 

 

 

 

(570,447)

 

 

 

 

 

 

 

 

 

 

 

 

 

            Net cash provided by operating activities

 

 

 

8,336,939

 

 

 

 

6,335,417

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash flows from investing activities

 

 

 

 

 

 

 

 

 

 

    Purchase of fixed assets

 

 

 

(352,318)

 

 

 

 

(394,212)

 

 

 

    Cash used for construction in progress

 

 

 

(5,833,198)

 

 

 

 

(2,614,419)

 

 

 

    Purchase of mature biological assets

 

 

 

(2,058,757)

 

 

 

 

-

 

 

 

    Cash acquired in acquisitions, net of cash paid

 

 

 

-

 

 

 

 

1,055,994

 

 

 

    Collection of loan to others

 

 

 

-

 

 

 

 

732,300

 

 

 

    Collection of loan to shareholders

 

 

 

-

 

 

 

 

923,627

 

 

 

 

 

 

 

 

 

 

 

 

 

Net cash used in investing activities

 

 

 

(8,244,274)

 

 

 

 

(296,710)

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash flows from financing activities

 

 

 

 

 

 

 

 

 

 

    Proceeds from short-term loans

 

 

 

1,133,247

 

 

 

 

549,237

 

 

 

    Repayment of short-term loans

 

 

 

(664,838)

 

 

 

 

-

 

 

 

    Repayment of related party loans

 

 

 

(309,935)

 

 

 

 

(1,933,667)

 

 

 

 

 

 

 

 

 

 

 

 

 

Net cash provided by (used in) financing activities

 

 

 

158,474

 

 

 

 

(1,384,430)

 

 

 

 

 

 

 

 

 

 

 

 

 

Effect of exchange rate changes on cash and cash equivalents

 

 

 

125,927

 

 

 

 

1,226

 

 

 

 

 

 

 

 

 

 

 

 

 

Net increase in cash and cash equivalents

 

 

 

377,066

 

 

 

 

4,655,502

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents, beginning of period

 

 

 

5,163,790

 

 

 

 

1,640,259

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents, end of period

 

 

$

 

5,540,856

 

 

 

$

 

6,295,761

 

 

 

 

 

 

 

 

 

 

 

 

 

Supplemental disclosures of cash flow information:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    Interest paid

 

 

$

 

14,669

 

 

 

$

 

30,297

 

 

 

    Income taxes paid

 

 

$

 

-

 

 

 

$

 

-

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-cash investing and financing activities:

 

 

 

 

 

 

 

 

 

 

    Common stock issued for services

 

 

$

 

11,893

 

 

 

$

 

225,876

 

 

 

    Common stock issued for business acquisition

 

 

$

 

-

 

 

 

$

 

23,850,000

 

 

 

    Preferred stock issued for business acquisition

 

 

$

 

-

 

 

 

$

 

4,100,000

 

 

 

 

 

 

 

 

 

 

 

 

 

 




Source: Rodobo International, Inc.
Related Stocks:
OTC:RDBO
Keywords: Food/Beverages
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