HAIKOU, China, August 16, 2012 /PRNewswire-Asia/ -- Shiner International, Inc. (Nasdaq: BEST) ("Shiner" or the "Company"), an emerging global supplier of packaging solutions for food, tobacco, and consumer products, today announced its financial results for the quarter ended June 30, 2012.
Total revenue for the three months ended June 30, 2012 were $16.4 million, a decrease of $1.5 million (or 8.2%) compared to total revenue of $17.9 million for the same quarter ended June 30, 2011. The decrease was primarily attributable to decreased revenues generated from coated film and color printing, which was partially offset by increase in revenues generated from BOPP tobacco, advanced film and water-based latex. For the three months ended June 30, 2012, revenue from coated film revenue decreased $3.1 million (or 45.3%) to $3.8 million from $6.9 million for the corresponding period in 2011, and sales from color printing decreased $1.1 million (or 73.8%) to $0.4 million from $1.5 million for the corresponding period in 2011. For the three months ended June 30, 2012, revenue from BOPP tobacco increased $3.0 million (or 38.5%) to $10.6 million from $7.6 million for the corresponding period in 2011; revenue from advanced film decreased $0.3 million (or 18.2%) to $1.4 million from $1.7 million for the corresponding period in 2011; and revenue from water-based latex increased $0.1 million (or 60.9%) to $0.3 million from $0.2 million for the corresponding period in 2011.
Shiner's gross profit for the three months ended June 30, 2012 was $0.5 million, the gross profit margin decreased to 3.0% compared to 14.1% of total revenue for the corresponding period in 2011. The decrease in gross profit margin was primarily a consequence of increased labor costs and depreciation of the new property.
Operating loss for the three months ended June 30, 2012 was $(1.5) million compared to operating income of $1.3 million for the same quarter ended June 30, 2011. Selling, general and administrative ("SG&A") expenses increased by 61.6%, or $0.7 million, to $2 million for 2012 compared to $1.2 million for the corresponding period in 2011. The increase in "SG&A" expenses was mainly due to a $0.2 million increase in R&D expense and a $0.2 million increase in for marketing expense.
Shiner reported net income of $(1.4) million for the three months ended June 30, 2012, compared to $0.8 million in the same period of 2011. Earnings per share for the quarter were $(0.05), compared to earnings of $0.03 per share for the same period of 2011.
About Shiner International, Inc.,
Shiner International, Inc. is engaged in the research and development, manufacture and sale of flexible packaging material and advanced film. Its products include coated packaging film, shrink-wrap film, common packaging film, anti-counterfeit laser holographic film and color-printed packaging materials. The Company's products are used by manufacturers in the food and consumer products industry to preserve the texture, flavor, hygiene, and convenience and safety of their products. The Company was founded in 1990 and is headquartered in Haikou, China.
Approximately 80% of Shiner's current customers are located in China, with the remainder spanning Southeast Asia, Europe, the Middle East and North America. Shiner holds 20 patents on products and production equipment, and has an additional 9 patent applications pending. The Company's flexible packaging meets U.S. FDA requirements, as well as the requirements for food packaging sold in the EU. Shiner's product manufacturing process is certified under ISO 9001:2000. Additional information on Shiner is available at http://www.shinerinc.com.
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. You are cautioned not to place undue reliance on any forward-looking statements in this press release as they reflect Shiner International, Inc.'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 Shiner's filings with the Securities and Exchange Commission. The information contained in this press release is made as of the date of the press release, even if subsequently made available by Shiner on its website or otherwise
Contact: Cindy Gong
Tel: 86-898-6858 1104
Fax: 86-898-6858 1513
Email: rong.gong@shinerinc.com; ir@shinerinc.com
Web: http://www.shinerinc.com
SHINER INTERNATIONAL, INC. AND SUBSIDIARIES | ||||||
CONSOLIDATED BALANCE SHEETS | ||||||
June 30, | December 31, | |||||
2012 | 2011 | |||||
(unaudited) | ||||||
ASSETS | ||||||
CURRENT ASSETS: | ||||||
Cash & equivalents | $ | 3,435,300 | $ | 2,831,808 | ||
Restricted cash | 214,645 | 57,613 | ||||
Accounts receivable, net of allowance for doubtful | ||||||
accounts of $216,097 and $121,017 at 2012 and 2011 | 7,518,337 | 7,744,377 | ||||
Advances to suppliers | 12,123,083 | 10,042,214 | ||||
Notes receivable | 23,760 | 7,865 | ||||
Inventory, net | 12,601,434 | 10,252,955 | ||||
Prepaid expenses & other current assets | 597,395 | 1,072,326 | ||||
Total current assets | 36,513,954 | 32,009,158 | ||||
Property and equipment, net | 35,287,561 | 27,836,253 | ||||
Construction in progress | 4,868,557 | 12,037,154 | ||||
Advance for the purchase of equipment | 786,082 | 763,427 | ||||
Intangible assets, net | 2,966,848 | 3,063,646 | ||||
Goodwill | 2,037,492 | 2,023,342 | ||||
TOTAL ASSETS | $ | 82,460,494 | $ | 77,732,980 | ||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||
CURRENT LIABILITIES: | ||||||
Accounts payable | $ | 3,227,289 | $ | 5,133,835 | ||
Other payables | 6,848,762 | 7,021,179 | ||||
Unearned revenue | 1,759,492 | 1,313,320 | ||||
Accrued payroll | 154,069 | 193,884 | ||||
Short-term loans | 17,676,554 | 10,684,625 | ||||
Total current liabilities | 29,666,166 | 24,346,843 | ||||
Long-term loans | 11,088,000 | 9,957,090 | ||||
Total Liabilities | 40,754,166 | 34,303,933 | ||||
Commitments and contingencies | ||||||
EQUITY: | ||||||
Shiner stockholders' equity: | ||||||
Common stock, par value $0.001; 75,000,000 shares authorized, | ||||||
27,603,336 shares issued and 27,541,491 shares outstanding | 27,603 | 27,603 | ||||
Additional paid-in capital | 14,334,424 | 14,332,392 | ||||
Treasury stock (61,845 shares) | (58,036) | (58,036) | ||||
Other comprehensive income | 5,721,604 | 5,426,393 | ||||
Statutory reserve | 3,301,528 | 3,523,273 | ||||
Retained earnings | 16,731,553 | 18,478,618 | ||||
Total Shiner stockholders' equity | 40,058,676 | 41,730,243 | ||||
Noncontrolling interest | 1,647,652 | 1,698,804 | ||||
Total equity | 41,706,328 | 43,429,047 | ||||
TOTAL LIABILITIES AND EQUITY | $ | 82,460,494 | $ | 77,732,980 | ||
SHINER INTERNATIONAL, INC. AND SUBSIDIARIES | ||||||||
CONSOLIDATED STATEMENTS OF OPERATIONS AND OTHER COMPREHENSIVE INCOME (LOSS) | ||||||||
(unaudited) | ||||||||
Three Months Ended June 30, | ||||||||
2012 | 2011 | |||||||
Net Revenue | $ | 16,401,485 | $ | 17,867,227 | ||||
Cost of goods sold | 15,913,476 | 15,347,733 | ||||||
Gross profit | 488,009 | 2,519,494 | ||||||
Operating expenses | ||||||||
Selling | 577,500 | 548,952 | ||||||
General and administrative | 1,386,968 | 666,360 | ||||||
Total operating expenses | 1,964,468 | 1,215,312 | ||||||
Income (loss) from operations | (1,476,459) | 1,304,182 | ||||||
Non-operating income (expense): | ||||||||
Other income, net | 294,712 | (122,778) | ||||||
Interest income | 9,565 | 2,191 | ||||||
Interest expense | (323,196) | (271,329) | ||||||
Exchange (loss) | (3,775) | 116,508 | ||||||
Total non-operating income (expense) | (22,694) | (275,408) | ||||||
Income (loss) before income tax | (1,499,153) | 1,028,774 | ||||||
Income tax expense (benefit) | (63,222) | 222,402 | ||||||
Net income (loss) | (1,435,931) | 806,372 | ||||||
Net loss attributed to noncontrolling interest | (21,641) | 7,001 | ||||||
Net income (loss) attributed to Shiner | $ | (1,414,290) | $ | 799,371 | ||||
Comprehensive income (loss) | ||||||||
Net income (loss) | $ | (1,435,931) | $ | 806,372 | ||||
Foreign currency translation gain | 28,762 | 476,031 | ||||||
Comprehensive income (loss) | $ | (1,407,169) | $ | 1,282,403 | ||||
Weighted average shares outstanding : | ||||||||
Basic | 27,541,491 | 27,541,491 | ||||||
Diluted | 27,541,491 | 27,541,491 | ||||||
Earnings (loss) per share attributed to Shiner common stockholders | ||||||||
Basic | $ | (0.05) | $ | 0.03 | ||||
Diluted | $ | (0.05) | $ | 0.03 | ||||
SHINER INTERNATIONAL, INC. AND SUBSIDIARIES | |||||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||||
(unaudited) | |||||||||
Six Months Ended June 30, | |||||||||
2012 | 2011 | ||||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | |||||||||
Net income (loss) | $ | (2,031,837) | $ | 1,803,066 | |||||
Adjustments to reconcile net income (loss) to net cash | |||||||||
used in operating activities: | |||||||||
Depreciation | 1,654,126 | 1,151,187 | |||||||
Amortization | 118,214 | 46,606 | |||||||
Stock compensation expense | 2,032 | 1,390 | |||||||
Change in working capital components: | |||||||||
Accounts receivable | 280,177 | 2,967,525 | |||||||
Inventory | (2,276,621) | (2,353,513) | |||||||
Advances to suppliers | (2,010,504) | (5,942,213) | |||||||
Other assets | 475,505 | 165,556 | |||||||
VAT receivable | - | (1,547,708) | |||||||
Accounts payable and accrued expenses | (1,942,069) | (186,329) | |||||||
Unearned revenue | 439,576 | 1,433,840 | |||||||
Other payables | (219,453) | 1,409,669 | |||||||
Accrued payroll | (41,167) | 2,460 | |||||||
Net cash used in operating activities | (5,552,021) | (1,048,464) | |||||||
CASH FLOWS FROM INVESTING ACTIVITIES | |||||||||
Purchase of Shimmer Sun Ltd | - | (1,300,000) | |||||||
Cash acquired in acquisition of Shimmer Sun Ltd | - | 248,742 | |||||||
Issuance of notes receivable | (23,764) | - | |||||||
Payment on note receivable | 7,925 | 25,684 | |||||||
Payments for property and equipment | (1,675,316) | (8,830,790) | |||||||
Payments for construction in progress | - | (4,002,547) | |||||||
Increase in restricted cash | (156,619) | - | |||||||
Net cash used in investing activities | (1,847,774) | (13,858,911) | |||||||
CASH FLOWS FROM FINANCING ACTIVITIES: | |||||||||
Repayment of short-term loans | (11,655,944) | (6,880,500) | |||||||
Proceeds from short-term loans | 18,572,677 | 7,645,000 | |||||||
Proceeds from long-term loans | 1,061,206 | 9,036,390 | |||||||
Net cash provided by financing activities | 7,977,939 | 9,800,890 | |||||||
Effect of exchange rate changes on cash and cash equivalents | 25,348 | 14,533 | |||||||
NET INCREASE (DECREASE) IN CASH AND EQUIVALENTS | 603,492 | (5,091,952) | |||||||
CASH AND EQUIVALENTS, BEGINNING BALANCE | 2,831,808 | 8,622,035 | |||||||
CASH AND EQUIVALENTS, ENDING BALANCE | $ | 3,435,300 | $ | 3,530,083 | |||||
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: | |||||||||
Interest paid | $ | 546,020 | $ | 397,998 | |||||
Income taxes paid | $ | 7,608 | $ | 439,962 | |||||
