omniture

Sinovac Reports Unaudited Second Quarter Financial Results

-- Conference call scheduled for Thursday, August 13, 2015 at 8:00 AM ET -
2015-08-13 04:30 1289

August 13, 2015 /PRNewswire/ -- Sinovac Biotech Ltd. (NASDAQ: SVA), a leading provider of biopharmaceutical products in China, announced today its unaudited second quarter and half year financial results for the period ended June 30, 2015.

Second Quarter 2015 Financial Highlights
(compared to the second quarter of 2014)

  • Quarterly sales were $18.5 million, an increase of 53.1% from $12.1 million in the prior year period.
  • Gross profit was $15.1 million, an increase of 66.6% from $9.1 million in the prior year period.
  • Gross margin was 81.6%, compared to 75.0% in the prior year period.
  • Net income attributable to common shareholders was $2.3 million, or $0.04 per basic and diluted share, compared to net loss attributable to common shareholders of $2.2 million, or $(0.04) per basic and diluted share, in the second quarter of 2014.

Mr. Weidong Yin, Chairman, President and CEO of Sinovac, commented, "I am very pleased to announce our strong sales and profitability during the second quarter. We continue to execute our strategy to drive sales while maintaining tight control over our operating costs. Although the general market environment remains the same as prior quarters, our sales results in the second quarter exemplify our team's ability to adjust to challenging market dynamics."

Mr. Yin continued, "Additionally, we continue to move forward in the approval process for our EV71 vaccine candidate. During July and August, CFDA inspectors have been conducting the site and GMP inspections of our manufacturing facility. The site inspection was completed last week and will be followed by sample testing. Our projected timing for EV71 commercialization remains unchanged. "

Business Update

EV71 vaccine. The China Food and Drug Administration (CFDA) has completed a site inspection and GMP inspection of the Company's EV71 vaccine manufacturing facility, which will be followed by sample testing. Once the results of the inspection are available and the sample vaccine has passed the required testing, the CFDA will conduct a comprehensive review of the vaccine. Upon approval, the CFDA will then issue the new drug certificate, and production and GMP licenses. The Company expects to be able to bring its first commercial batch of the EV71 vaccine to market approximately four months after beginning commercial production. The Company received its site inspection notification in May of 2015.

Unaudited Financial Results for Second Quarter 2015



2015 Q2

% of Sales

2014 Q2

% of Sales

(In USD'000 except percentage data)

Hepatitis A vaccine- Healive


8,462

45.7%

5,113

42.3%

Hepatitis A&B vaccine - Bilive


9,216

49.8%

6,439

53.3%

Hepatitis vaccines subtotal


17,678

95.5%

11,552

95.6%

Influenza vaccine- Anflu


526

2.8%

-

-

Animal Rabies vaccine- Rabend


18

0.1%

18

0.1%

Mumps vaccine


287

1.6%

520

4.3%

Regular sales


18,509

100.0%

12,090

100.0%

H5N1


-

-

-

-

Total sales


18,509

100.0%

12,090

100.0%

Cost of goods sold


3,407

18.4%

3,025

25.0%

Gross profit


15,102

81.6%

9,065

75.0%

In the second quarter of 2015, total sales were $18.5 million, an increase of 53.1% from $12.1 million during the same period of 2014. The sales increase is mainly attributable to increased sales of Healive and Bilive into the private pay market, and supported by increased sales into the public market as well.

Gross profit was $15.1 million in the second quarter of 2015, compared to $9.1 million in the prior year period. Gross margin increased to 81.6% from 75.0% in the prior year period. The gross margin expansion was primarily due to higher average selling prices of the Company's hepatitis vaccines in the private pay market and a lower inventory provision compared to the comparative quarter.

Selling, general and administrative expenses in the second quarter of 2015 were $9.2 million, compared to $8.6 million in the same period of 2014. This increase was mainly due to increased G&A expenses associated with the trial production of the EV71 vaccine for the site inspection.

R&D expenses in the second quarter of 2015 were $2.2 million, compared to $3.3 million in the same period of 2014. This decrease is primarily attributable to an entrance fee incurred after the signing of the licensing agreement of sIPV production technology in the second quarter of 2014 and the purchase of the virus seeds for its sIPV candidate during the same period.

Net income attributable to common shareholders for the second quarter of 2015 was $2.3 million, or $ 0.04 per basic and diluted share, compared to a net loss attributable to common shareholders of $2.2 million, or $(0.04) per basic and diluted share, in the same period last year.

Unaudited Financial Results for First Half of 2015

- (In USD'000 except percentage data)


2015 H1

% of Sales

2014 H1

% of Sales

Hepatitis A vaccine - Healive


11,385

41.0%

11,552

45.1%

Hepatitis A&B vaccine - Bilive


14,271

51.4%

12,437

48.5%

Hepatitis vaccines subtotal


25,656

92.4%

23,989

93.6%

Influenza vaccine - Anflu


1,112

4.0%

61

0.2%

Animal Rabies vaccine - Rabend


80

0.3%

44

0.2%

Mumps vaccine


930

3.3%

1,440

5.6%

Regular sales


27,778

100.0%

25,534

99.6%







H5N1


-

-

102

0.4%

Total sales


27,778

100.0%

25,636

100.0%

Cost of goods sold


5,841

21.0%

6,303

24.6%







Gross profit


21,937

79.0%

19,333

75.4%

Total sales for the first half of 2015 were $27.8 million, an increase of 8.4% from $25.6 million in the same period of 2014. The increase is primarily due to increased sales of Bilive into the private pay market.

Gross profit in the first half of 2015 was $21.9 million, an increase of 13.5% from $19.3 million in the same period of 2014. Gross margin was 79.0% in the first half of 2015, compared to 75.4% in the same period of 2014.

Selling, general and administrative expenses in the first half of 2015 were $16.1 million, consistent with $16.4 million in the same period of 2014.

R&D expenses in the first half of 2015 were $4.4 million, compared to $5.0 million in the same period of 2014. In the first half of 2015, the R&D expenses incurred by the Company is mainly attributable to the phase III clinical trial on PPV. Instead, in the first half of 2014, a substantial portion of the Company's R&D expenses were related to its sIPV program as explained above.

Net income attributable to common shareholders in the first half of 2015 was $20,000, or $0.00 per basic and diluted share, compared to a net loss of $2.2 million, or $(0.04) per basic and diluted share, in the same period of 2014.

As of June 30, 2015, cash and cash equivalents totaled $64.8 million, compared to $91.5 million as of December 31, 2014. Net cash used in operating activities was $7.8 million in the first half of 2015. Net cash used in investing activities was $2.8 million, which was primarily used for the purchase of property, plant and equipment. Net cash used in financing activities was $16.1 million during the first half of 2015, representing loan proceeds of $12.0 million offset by loan repayments of $28.5 million. As of June 30, 2015, the Company had $32.6 million of bank loans due within one year. When appropriate, the Company will seek new commercial bank loans to finance the commercialization of pipeline products, as well as for other operational purposes.

Conference Call Details

Sinovac will host a conference call on Thursday, August 13, 2015 at 8:00 a.m. ET (August 13, 2015 at 8:00 p.m. China Standard Time) to review the Company's financial results and provide an update on recent corporate developments. To access the conference call, please dial 1-877-407-9039 (USA) or 1-201-689-8470 (International). A replay of the call will be available from 11:00 a.m. ET on August 13, 2015 through August 27, 2015. To access the replay, please dial 1-877-870-5176 (USA) or 1-858-384-5517 (International) and reference the replay pin number 13616892.

A live audio webcast of the call will also be available on the Investor Relations section of the Company's website at www.sinovac.com. A webcast replay will be available on the Company's website for 30 days following the call.

About Sinovac
Sinovac Biotech Ltd. is a China-based biopharmaceutical company that focuses on the research, development, manufacturing, and commercialization of vaccines that protect against human infectious diseases. Sinovac's product portfolio includes vaccines against hepatitis A and B, seasonal influenza, H5N1 pandemic influenza (avian flu), H1N1 influenza (swine flu), mumps and canine rabies. In 2009, Sinovac was the first company worldwide to receive approval for its H1N1 influenza vaccine, which it has supplied to the Chinese Government's vaccination campaign and stockpiling program. The Company is also the only supplier of the H5N1 pandemic influenza vaccine to the government stockpiling program. Sinovac has filed a new drug application with the China Food & Drug Administration for its proprietary enterovirus 71 vaccine, having been proven effective in preventing hand, foot and mouth disease in infants and children during its phase III clinical trial. The Company is currently developing a number of new products including a Sabin-strain inactivated polio vaccine, pneumococcal polysaccharides vaccine, pneumococcal conjugate vaccine and varicella vaccine. Sinovac primarily sells its vaccines in China, while also exploring growth opportunities in international markets. The Company has exported select vaccines to Mexico, Mongolia, Nepal, and the Philippines, and was recently granted a license to commercialize its hepatitis A vaccine in Chile. For more information, please visit the Company's website at www.Sinovac.com .

Contact

Sinovac Biotech Ltd.
Helen Yang
Tel: +86-10-8279-9871
Fax: +86-10-6296-6910
Email: ir@sinovac.com

ICR Inc.
Bill Zima
U.S: +1 (646) 308-1707
Email: william.zima@icrinc.com

Katherine Knight
Phone: +1 (646) 277-1276
Email: katherine.knight@icrinc.com

SINOVAC BIOTECH LTD.

Consolidated Balance sheets

As of June 30, 2015 and December 31, 2014

(Expressed in thousands of U.S. Dollars, except for numbers of shares and per share data)




Current assets

June 30, 2015

December 31,2014




Cash and cash equivalents

64,756

91,518

Accounts receivable - net

44,144

40,757

Inventories

23,228

18,832

Prepaid expenses and deposits

1,154

1,430

Deferred tax assets

1,669

2,266

Total current assets

134,951

154,803




Property, plant and equipment

67,814

68,417

Prepaid land lease payments

10,275

10,405

Long-term inventories

2,650

2,648

Long-term prepaid expenses

-

3

Prepayments for acquisition of equipment

1,398

1,387

Deferred tax assets

445

515

Licenses

176

352

Total assets

217,709

238,530




Current liabilities



Short-term bank loans and current portion of long-term debt

32,640

47,375

Loan from a non-controlling shareholder

2,595

2,595

Accounts payable and accrued liabilities

19,565

23,237

Income tax payable

750

1,101

Deferred revenue

3,893

4,996

Deferred government grants

904

530

Total current liabilities

60,347

79,834




Deferred government grants

6,463

7,494

Long-term debt

-

1,803

Deferred revenue

7,197

7,191

Other non-current liabilities

479

482

Total long term liabilities

14,139

16,970




Total liabilities

74,486

96,804




Commitments and contingencies



Equity



Preferred stock

-

-

Common stock

56

56

Additional paid-in capital

109,073

108,243

Accumulated other comprehensive income

12,065

12,022

Statutory surplus reserves

12,627

12,627

Accumulated deficit

(6,364)

(6,384)

Total shareholders' equity

127,457

126,564




Non-controlling interests

15,766

15,162

Total equity

143,223

141,726

Total liabilities and equity

217,709

238,530

SINOVAC BIOTECH LTD.

Consolidated Statements of Comprehensive Income (loss)

For the three and six months ended June 30, 2015 and 2014

(Unaudited)

(Expressed in thousands of U.S. Dollars, except for numbers of shares and per share data)










Three months ended June 30


Six months ended June 30



2015

2014


2015

2014

Sales


18,509

12,090


27,778

25,636

Cost of sales


3,407

3,025


5,841

6,303

Gross profit


15,102

9,065


21,937

19,333








Selling, general and administrative expenses


9,172

8,589


16,093

16,381

Provision for doubtful accounts


173

132


84

294

Research and development expenses


2,221

3,265


4,433

4,967

Loss (gain) on disposal and impairment of property, plant and
equipment


(24)

29


(24)

29

Government grants recognized in income


(437)

-


(443)

-

Total operating expenses


11,105

12,015


20,143

21,671

Operating income (loss)


3,997

(2,950)


1,794

(2,338)








Interest and financing expenses


(421)

(832)


(1,009)

(1,582)

Interest income


288

765


715

1,545

Other income


28

71


103

217

Income (loss) before income taxes and non-controlling
interests


3,892

(2,946)


1,603

(2,158)

Income tax expense


(440)

(76)


(991)

(423)

Net Income (loss)


3,452

(3,022)


612

(2,581)

Less: (Income) loss attributable to the non-controlling interests

(1,181)

774


(592)

337

Net Income (loss) attributable to shareholders of
Sinovac


2,271

(2,248)


20

(2,244)








Other comprehensive income (loss), net of tax of nil







Foreign currency translation adjustments


(11)

(319)


55

(2,403)

Total comprehensive income (loss)


3,441

(3,341)


667

(4,984)

Less: comprehensive (income) loss attributable to non-controlling
interests


(1,186)

738


(604)

638

Comprehensive income (loss) attributable to
shareholders of Sinovac


2,255

(2,603)


63

(4,346)








Weighted average number of shares of common stock
outstanding







Basic


56,019,451

55,663,566


55,974,252

55,625,509

Diluted


56,187,591

55,663,566


56,219,495

55,625,509








Earning (loss) per share







Basic


0.04

(0.04)


0.00

(0.04)

Diluted


0.04

(0.04)


0.00

(0.04)

SINOVAC BIOTECH LTD.

Consolidated Statements of Cash Flows

For the three and six months ended June 30, 2015 and 2014

(Unaudited)

(Expressed in thousands of U.S. Dollars)


Three months ended

Six months ended


June 30

June 30



2015


2014


2015


2014

Cash flows provided by (used in) operating activities









Net income (loss)

$

3,452

$

(3,022)

$

612

$

(2,581)

Adjustments to reconcile net income (loss) to net cash









Used in operating activities:









- deferred income taxes


165


58


699


369

- stock-based compensation


208


71


321


143

- inventory provision


521


321


566


542

- provisionfor doubtful accounts


173


132


84


294

- loss (gain) on disposal and impairment of equipment


(24)


29


(24)


29

- government grants recognized in income


(437)


-


(443)


-

- depreciation of property, plant and equipment and amortization of license

1,759


1,903


3,451


4,534

- amortization of the prepaid land lease payments


68


65


137


132

- accretion expenses


30


28


59


55

Changes in:









- accounts receivable


(1,770)


1,327


(3,613)


(3,654)

- inventories


(3,544)


(4,905)


(5,086)


(7,784)

- income tax payable


(382)


-


(382)


-

- prepaid expenses and deposits


(143)


234


521


(348)

- deferred revenue


(1,104)


33


(1,104)


(685)

- accounts payable and accrued liabilities


1,446


(1,889)


(3,578)


(2,459)










Net cash provided by (used in) operating activities


418


(5,615)


(7,780)


(11,413)










Cash flows provided by (used in) financing activities









- Proceeds from bank loans


11,154


3,182


11,956


8,917

- Repayments of bank loans


(9,138)


(6,084)


(28,541)


(8,542)

- Proceeds from issuance of common stock,









net of share issuance costs


237


147


500


252

- Proceeds from shares subscribed


9


31


9


80

- Government grants received


6


185


9


185










Net cash provided by (used in) financing activities


2,268


(2,539)


(16,067)


892










Cash flows used in investing activities









- Acquisition of property, plant and equipment


(1,064)


(3,479)


(2,845)


(5,683)










Net cash used in investing activities


(1,064)


(3,479)


(2,845)


(5,683)










Exchange gain (loss) on cash and cash equivalents


64


(385)


(70)


(1,404)










Increase (decrease) in cash and cash equivalents


1,686


(12,018)


(26,762)


(17,608)










Cash and cash equivalents, beginning of period


63,070


101,652


91,518


107,242










Cash and cash equivalents, end of period

$

64,756

$

89,634

$

64,756

$

89,634

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/sinovac-reports-unaudited-second-quarter-financial-results-300127464.html

Source: Sinovac Biotech Ltd.
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