omniture

SkyPeople Fruit Juice Reports First Quarter 2012 Financial Results

2012-05-14 20:00 1206

XI'AN , China, May 14, 2012 /PRNewswire-Asia-FirstCall/ -- SkyPeople Fruit Juice, Inc. (NASDAQ: SPU) ("SkyPeople" or "the Company"), a producer of fruit juice concentrates, fruit beverages and other fruit-related products, today announced its financial results for the three months ended March 31, 2012.

First Quarter 2012 Summary:

  • Total revenue was $15.0 million, a decrease of 23% year-over-year
  • Sales revenue of concentrated kiwi juice and kiwi puree increased 26% to $3.8 million
  • Sales revenue of concentrated pear juice increased 19% to $4.8 million
  • Cash generated from operations was $14.8 million
  • Cash and cash equivalents were $76.7 million as of March 31, 2012

Yongke Xue, Chief Executive Officer of SkyPeople, commented, "We continue to be challenged by unpredictable market conditions and rising raw material costs due to the volatile pricing of fresh fruits. We understand that these factors are beyond our control, and have been working to further diversify our segment mix to offset, to the extent possible, the effect of seasonality. Nonetheless, we were able to generate healthy margins in two key product lines. We are also pleased to report solid cash flows generated from operating activities, further strengthening our cash position which enables us to execute our comprehensive growth strategy."

"During the quarter we achieved the following important developments which I would like to highlight. First of all, our cash balances had been independently verified, which substantiated our integrity and reassured investors as to our credibility. Secondly, we had commenced operation of a new fruit juice beverage production line in our Huludao Wonder subsidiary, which was expected to help us take advantage of economies of scale and focus on producing high margin fruit juice beverages. Thirdly, we appointed Mr. Xin Ma as our new Chief Financial Officer with confidence that his experience with U.S. publicly traded Chinese companies is an excellent fit to our needs. These developments reflected our management's commitment to focus on enhanced financial transparency, sound investor communications and an operational focus on high margin products. Our top priority continues to be generating solid returns on our investment so as to create long-term value for our shareholders," CEO Xue stated.

First Quarter 2012 Financial Results

Revenue for the three months ended March 31, 2012 was $15.0 million, a decrease of 23%, as compared to $19.4 million in the same period in 2011. This decrease was primarily due to a decrease in the sales of concentrated apple juice and apple aroma, fruit juice beverages as well as fresh fruits and vegetables, as partially offset by an increase in the sales of concentrated kiwifruit juice and kiwifruit puree and concentrated pear juice.

First Quarter 2012 Revenue by Segment (in thousands)


2012


2011


% of change

Concentrated apple juice and apple aroma

$2,508


$3,673


(32%)

Concentrated kiwifruit juice and kiwifruit puree

3,761


2,985


26%

Concentrated pear juice

4,767


4,022


19%

Fruit juice beverages

3,370


7,277


(54%)

Fresh fruits and vegetables

588


1,458


(60%)

Total

$14,994


$19,415


(23%)

Gross profit was $4.8 million, as compared to $8.6 million in the first quarter of 2011. Gross profit margin was 32% as compared to 44% in the same period of 2011. The year-over-year decline in gross margin was attributable to a decline in gross margins in four of the Company's five primary product segments.

Operating expenses for the first quarter of 2012 were $2.1 million, or 15% of sales, compared to $1.4 million, or 7% of sales in the same period of 2011. General and administrative expenses increased by 81% to $1.5 million, mainly due to an increase in legal fees related to the Company's current pending litigations, payroll and related expenses as a result of an increase in employees to handle the increased general and administrative work. Selling expenses increased by 16% to $0.5 million, mainly due to an increase in payroll and related expenses as a result of an increased headcounts to handle the greater sales effort.

Income from operations for the first quarter of 2012 dropped 63% to $2.6 million as compared to $7.2 million for the same period of 2011.

Net income attributable to common shareholders and earnings per share for the first quarter of 2012 were $1.9 million and $0.07, respectively, compared to $5.3 million and $0.20, respectively, in the first quarter of 2011.

Conference Call

The Company will hold a conference call on Tuesday, May 15, 2012, at 9:00 a.m. Eastern Time to discuss its financial results for the first quarter ended March 31, 2012.

The Company's CEO, Mr. Yongke Xue, and the CFO, Mr. Xin Ma, will host the call.

To attend the live conference call, please dial in at least 10 minutes before the call to ensure timely participation. Please use the dial-in information below. When prompted by the operator, mention the conference Pass Code.

Date:

Tuesday, May 15, 2012

Time:

9:00 a.m. Eastern Time, US

Conference Line Dial-In:

+1-866-394-2209

International Dial-In:

+1-706-758-1481

Conference Pass Code:

79908497

To access the replay, please dial 1-855-859-2056 within the United States or 1-404-537-3406 when dialing internationally, and enter the pass code 79908497 for the replay. The replay will be available on May 15th at 12:00 pm.

About SkyPeople Fruit Juice, Inc.

SkyPeople Fruit Juice, Inc., a Florida company, through its wholly-owned subsidiary Pacific Industry Holding Group Co., Ltd. ("Pacific"), a Vanuatu company, holds 99.78% ownership interest in SkyPeople Juice Group Co., Ltd. ("SkyPeople (China)"). SkyPeople (China) is engaged in the production and sales of fruit juice concentrates, fruit beverages, and other fruit related products in the PRC and overseas markets. Its fruit juice concentrates are sold to domestic customers and exported directly or via distributors. Fruit juice concentrates are used as a basic ingredient component in the food industry. Its brands, "Hedetang" and "SkyPeople", which are registered trademarks in the PRC, are positioned as high quality, healthy and nutritious end-use juice beverages. For more information, please visit http://www.skypeoplefruitjuice.com.

Safe Harbor Statement

Certain of the statements made in this press release are "forward-looking statements" within the meaning and protections of Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended, or the Exchange Act. Forward-looking statements include statements with respect to our beliefs, plans, objectives, goals, expectations, anticipations, assumptions, estimates, intentions, and future performance, and involve known and unknown risks, uncertainties and other factors, which may be beyond our control, and which may cause the actual results, performance, capital, ownership or achievements of the Company to be materially different from future results, performance or achievements expressed or implied by such forward-looking statements. All statements other than statements of historical fact are statements that could be forward-looking statements. You can identify these forward-looking statements through our use of words such as "may," "will," "anticipate," "assume," "should," "indicate," "would," "believe," "contemplate," "expect," "estimate," "continue," "plan," "point to," "project," "could," "intend," "target" and other similar words and expressions of the future.

All written or oral forward-looking statements attributable to us are expressly qualified in their entirety by this cautionary notice, including, without limitation, those risks and uncertainties described in our annual report on Form 10-K for the year ended December 31, 2011 and otherwise in our SEC reports and filings, including the final prospectus for our offering. Such reports are available upon request from the Company, or from the Securities and Exchange Commission, including through the SEC's Internet website at http://www.sec.gov. We have no obligation and do not undertake to update, revise or correct any of the forward-looking statements after the date hereof, or after the respective dates on which any such statements otherwise are made.

For more information, please contact:

COMPANY

Xin Ma, CFO

SkyPeople Fruit Juice, Inc.

Tel: China + 86 - 29-8837-7161

Email: oliver.x.ma@skypeoplefruitjuice.com

Web: http://www.skypeoplefruitjuice.com

- Financial Tables Follow -

SKYPEOPLE FRUIT JUICE, INC.

CONSOLIDATED BALANCE SHEETS











March 31,


December 31,



2012


2011

ASSETS


(Unaudited)











CURRENT ASSETS







Cash and cash equivalents


$

76,713,489


$

61,154,007

Restricted cash



31,775



316,396

Accounts receivables, net of allowance of $46,577
and $46,529 as of March 31, 2012 and December 31, 2011, respectively



21,782,597



35,999,858

Other receivables



190,210



192,032

Inventories



5,335,964



6,126,376

Deferred tax assets



113,770



174,285

Advances to suppliers and other current assets


175,832



66,528

TOTAL CURRENT ASSETS



104,343,637



104,029,482








PROPERTY, PLANT AND EQUIPMENT, NET

49,784,454



44,277,228

LAND USE RIGHT, NET



6,635,133



6,673,496

OTHER ASSETS



173,233



5,323,162

TOTAL ASSETS


$

160,936,457


$

160,303,368















LIABILITIES














CURRENT LIABILITIES







Accounts payable


$

2,099,190


$

2,972,916

Accrued expenses



3,468,696



4,701,054

Income tax payable



855,217



1,910,779

Advances from customers



-



178,857

Short-term bank loans



8,467,979



6,425,713

Short-term notes payable



-



284,654

TOTAL CURRENT LIABILITIES



14,891,082



16,473,973








SHAREHOLDERS' EQUITY














SkyPeople Fruit Juice, Inc, Stockholders' equity







Series B Preferred stock, $0.001 par value;
10,000,000 shares authorized; 1,456,647
issued and outstanding as of March 31,
2012 and December 31, 2011



1,457



1,457

Common stock, $0.001 par value; 66,666,666
shares authorized; 25,690,402 shares
issued and outstanding as of March 31,
2012 and December 31, 2011



25,690



25,690

Additional paid-in capital



59,189,374



59,189,374

Retained earnings



66,542,611



64,623,453

Accumulated other comprehensive income



14,236,710



14,086,620

Total SkyPeople Fruit Juice, Inc. stockholders'
equity



139,995,842



137,926,594

Non-controlling interests



6,049,533



5,902,801

TOTAL EQUITY



146,045,375



143,829,395

TOTAL LIABILITIES AND EQUITY


$

160,936,457


$

160,303,368








SKYPEOPLE FRUIT JUICE, INC.

CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME

(Unaudited)










For the Three month Ended March 31,



2012


2011

Revenue


$

14,993,500


$

19,414,915

Cost of goods sold



10,207,501



10,809,357

Gross profit



4,785,999



8,605,558








Operating Expenses







General and administrative expenses



1,477,604



816,160

Selling expenses



525,334



454,674

Research and development expenses



142,685



136,467

Total operating expenses



2,145,623



1,407,301








Income from operations



2,640,376



7,198,257








Other income (expenses)







Interest income



69,689



76,312

Subsidy income



433,504



483,067

Interest expenses



(154,812)



(163,795)

Others



(968)



(3,033)

Total other income (expenses)



347,413



392,551








Income before income tax



2,987,789



7,590,808

Income tax provision



928,380



1,929,808

Net income



2,059,409



5,661,000








Less: Net income attributable to non-controlling interests



140,251



368,824








NET INCOME ATTRIBUTABLE TO SKYPEOPLE FRUIT JUICE, INC.


$

1,919,158


$

5,292,176








Earnings per share:







Basic earnings per share


$

0.07


$

0.20

Diluted earnings per share


$

0.07


$

0.20








Weighted average number of shares outstanding




Basic



25,690,402



25,690,402

Diluted



26,661,500



26,662,599








Comprehensive Income







Net income


$

2,059,409


$

5,661,000

Foreign currency translation adjustment



156,571



1,141,578

Total Comprehensive income


$

2,215,980


$

6,802,578

Comprehensive income attributable to non-controlling interests



146,732



413,802

Comprehensive income attributable to SkyPeople Fruit Juice, Inc.


$

2,069,248


$

6,388,776








SKYPEOPLE FRUIT JUICE, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)










For the Three month Ended March 31,



2012


2011

CASH FLOWS FROM OPERATING ACTIVITIES







Net income


$

2,059,409


$

5,661,000

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







Depreciation and amortization



706,064



865,108

Deferred income tax assets



60,515



-

Changes in operating assets and liabilities







Accounts receivable



14,225,403



10,143,930

Other receivable



2,009



(108,542)

Advances to suppliers and other current assets



(109,276)



(28,135)

Inventories



1,163,961



(837,263)

Accounts payable



(875,022)



2,457,839

Accrued expenses



(1,233,484)



(1,699,172)

Income tax payable



(1,055,393)



(2,451,649)

Advances from customers



(178,673)



(394,573)

Net cash provided by operating activities



14,765,513



13,608,543








CASH FLOWS FROM INVESTING ACTIVITIES







Additions to property, plant and equipment



(1,320,608)



(60,901)

Prepayment for other assets



(13,621)



(225,513)

Net cash used in investing activities



(1,334,229)



(286,414)








CASH FLOWS FROM FINANCING ACTIVITIES







Decreased in restricted cash



284,361



103,574

Short-term notes payable



(284,361)



(103,574)

Proceeds from short-term bank loans



3,170,879



2,486,808

Repayment of short-term bank loans



(1,139,578)



-

Net cash provided by financing activities



2,031,301



2,486,808








Effect of change in exchange rate



96,897



560,614








NET INCREASE IN CASH AND CASH EQUIVALENTS



15,559,482



16,369,551

Cash and cash equivalents, beginning of period



61,154,007



49,350,385

Cash and cash equivalents, end of period


$

76,713,489


$

65,719,936








SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION







Cash paid for interest


$

154,812


$

163,795

Cash paid for income taxes


$

1,923,258


$

4,381,457








SUPPLEMENTARY DISCLOSURE OF SIGNIFICANT NON-CASH TRANSACTION







Transferred from other assets to property, plant
and equipment and construction in process


$

5,158,425


$

445,487








The notes in the Company's 10-Q are an integral part of these consolidated financial statements.

Source: SkyPeople Fruit Juice, Inc.
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