XI'AN, China, August 13, 2012 /PRNewswire-Asia-FirstCall/ -- SkyPeople Fruit Juice, Inc. (NASDAQ: SPU) ("SkyPeople" or "the Company"), a producer of fruit juice concentrates, fruit juice beverages and other fruit-related products, today announced its financial results for the second quarter ended June 30, 2012.
Second Quarter 2012 Highlights:
"We are pleased to report that the Company generated sound financial results for the quarter as the diversification of our product mix has continued to help offset the volatility associated with specific product growing seasons." Mr. Yongke Xue, Chief Executive Officer of SkyPeople, commented. "We were able to generate healthy growth and margins in our pear juice segment, in particular, and continue to seek additional product categories where we can leverage our core competencies and secure growing and stable cash flow."
CEO Xue continued, "During the quarter, we implemented a variety of new marketing strategies for our fruit juice beverage segment in order to heighten the segment's profile and increase sales. This resulted in strong sales momentum which saw strong sequential gains aided by our new 6,000 bottle per hour fruit juice production line which also began its operation in the quarter. We foresee continued favorable results as this downstream integration of our business further diversifies our product mix and capitalizes on the trend toward healthy nutrition in the market place," CEO Xue stated.
Second Quarter 2012 Financial Results
Revenue for the three months ended June 30, 2012 was $12.8 million, an increase of 5.1%, as compared to $12.2 million for the same period in 2011. This increase was primarily due to an increase in the sales of concentrated pear juice and fruit juice beverages, as partially offset by a decrease in the sales of concentrated apple juice and apple aroma and concentrated kiwifruit juice and kiwifruit puree.
Second Quarter 2012 Revenue by Segment (in thousands) | |||||
Three Months Ended, June 30 | Change | ||||
2012 | 2011 | % | |||
Concentrated apple juice and apple aroma | $751 | $2,387 | (68.5%) | ||
Concentrated kiwifruit juice and kiwifruit puree | 489 | 1,711 | (71.4%) | ||
Concentrated pear juice | 3,734 | 1,891 | 97.5% | ||
Fruit juice beverages | 6,366 | 5,433 | 17.2% | ||
Other | 1,497 | 789 | 89.7% | ||
Total | $12,837 | $12,211 | 5.1% | ||
Gross profit was $4.2 million, an increase of 1% from the second quarter of 2011. Gross profit margin was 33% as compared to 34% for the same period of 2011. The year-over-year decline in gross margin was attributable to a decline in gross margins in two of the Company's primary product segments - concentrated apple juice and apple aroma, and concentrated kiwifruit juice and kiwifruit puree. The gross margin of the concentrated pear juice and fruit juice beverage segments increased slightly.
Second Quarter 2012 Gross Profit by Segment (in thousands) | |||||||
Three Months Ended, June 30 | |||||||
2012 | 2011 | ||||||
Gross Profit | Gross Margin | Gross Profit | Gross Margin | ||||
Concentrated apple juice and apple aroma | $94 | 13% | $606 | 25% | |||
Concentrated kiwifruit juice and kiwifruit puree | 223 | 46% | 941 | 55% | |||
Concentrated pear juice | 1,705 | 46% | 805 | 43% | |||
Fruit juice beverages | 2,118 | 33% | 1,668 | 31% | |||
Other | 81 | 5% | 147 | 19% | |||
Total | $4,221 | 33% | $4,167 | 34% | |||
Operating expenses for the second quarter of 2012 decreased 27% to $1.3 million, or 10% of sales, compared to $1.8 million, or 14% of sales for the same period of 2011. General and administrative expenses decreased 35% to $0.7 million, mainly due to the insurance refund of our legal fees that we incurred related to our pending litigations. Selling expenses decreased 20% to $0.5 million, which was mainly due to a one-time sales rebate incurred during the same period of 2011, which was charged to selling expenses.
Income from operations for the second quarter of 2012 increased 22% to $2.9 million as compared to $2.4 million for the same period of 2011.
Net income attributable to common shareholders and diluted earnings per share for the second quarter of 2012 were $2.4 million and $0.09, respectively, compared to $1.5 million and $0.06, respectively, for the second quarter of 2011.
Six-Month 2012 Financial Results
Revenue for the six months ended June 30, 2012 decreased 12% to $27.8 million, from $31.6 million for the same period of 2011. Gross profit decreased 30% to $9.0 million from $12.8 million in the corresponding period of 2011. Operating income declined 42% to $5.5 million for the first half of 2012 from $9.6 million for the first half of 2011. Net income attributable to common shareholders and earnings per share for the first half of 2012 decreased 36% to $4.3 million, or $0.16 per diluted share compared to net income attributable to common shareholders of $6.8 million, or $0.25 per diluted share, for the first half of 2011.
Conference Call
The Company will hold a conference call on Wednesday, August 15, 2012, at 9:00 a.m. Eastern Time to discuss its financial results for the second quarter ended June 30, 2012.
The Company's CEO, Mr. Yongke Xue, and 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: | Wednesday, August 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: | 18762772 |
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 18762772 for the replay. The replay will be available on August 14 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, and SkyPeople Juice International Holding (HK) Ltd., a wholly-owned subsidiary of Pacific and a company organized under the laws of Hong Kong Special Administrative Region of the People's Republic of China, holds 99.78% ownership interest in SkyPeople Juice Group Co., Ltd. ("SkyPeople (China)"). SkyPeople (China) is engaged in the production and sale of fruit juice concentrates, fruit juice 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 |
-Financial Tables Follow-
SKYPEOPLE FRUIT JUICE, INC. | ||||||
CONSOLIDATED BALANCE SHEETS | ||||||
June 30, 2012 | December 31, 2011 | |||||
(Unaudited) | ||||||
ASSETS | ||||||
CURRENT ASSETS | ||||||
Cash and cash equivalents | $ | 87,712,871 | $ | 61,154,007 | ||
Restricted cash | 31,621 | 316,396 | ||||
Accounts receivables, net of allowance of $46,352 | 15,065,938 | 35,999,858 | ||||
Other receivables | 229,795 | 192,032 | ||||
Inventories | 5,951,049 | 6,126,376 | ||||
Deferred tax assets | 132,629 | 174,285 | ||||
Advances to suppliers and other current assets | 149,628 | 66,528 | ||||
TOTAL CURRENT ASSETS | 109,273,531 | 104,029,482 | ||||
PROPERTY, PLANT AND EQUIPMENT, NET | 48,435,375 | 44,277,228 | ||||
LAND USE RIGHT, NET | 7,760,565 | 6,673,496 | ||||
OTHER ASSETS | 1,026,167 | 5,323,162 | ||||
TOTAL ASSETS | $ | 166,495,638 | $ | 160,303,368 | ||
LIABILITIES | ||||||
CURRENT LIABILITIES | ||||||
Accounts payable | $ | 3,024,270 | $ | 2,972,916 | ||
Accrued expenses | 3,144,146 | 4,701,054 | ||||
Income tax payable | 880,708 | 1,910,779 | ||||
Advances from customers | - | 178,857 | ||||
Short-term bank loans | 11,589,116 | 6,425,713 | ||||
Short-term notes payable | - | 284,654 | ||||
TOTAL CURRENT LIABILITIES | 18,638,240 | 16,473,973 | ||||
SHAREHOLDERS' EQUITY | ||||||
SkyPeople Fruit Juice, Inc, Stockholders' equity | ||||||
Series B Preferred stock, $0.001 par value; | 1,052 | 1,457 | ||||
Common stock, $0.001 par value; 66,666,666 | 25,960 | 25,690 | ||||
Additional paid-in capital | 59,189,509 | 59,189,374 | ||||
Retained earnings | 68,943,262 | 64,623,453 | ||||
Accumulated other comprehensive income | 13,551,231 | 14,086,620 | ||||
Total SkyPeople Fruit Juice, Inc. stockholders' | 141,711,014 | 137,926,594 | ||||
Non-controlling interests | 6,146,384 | 5,902,801 | ||||
TOTAL EQUITY | 147,857,398 | 143,829,395 | ||||
TOTAL LIABILITIES AND EQUITY | $ | 166,495,638 | $ | 160,303,368 | ||
SKYPEOPLE FRUIT JUICE, INC. | ||||||||||||
CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME | ||||||||||||
(Unaudited) | ||||||||||||
For the Three Months Ended June 30, | For the Six Months Ended June 30, | |||||||||||
2012 | 2011 | 2012 | 2011 | |||||||||
Revenue | $ | 12,837,273 | $ | 12,210,706 | $ | 27,830,773 | $ | 31,625,621 | ||||
Cost of goods sold | 8,615,882 | 8,043,560 | 18,823,383 | 18,852,917 | ||||||||
Gross profit | 4,221,391 | 4,167,146 | 9,007,390 | 12,772,704 | ||||||||
Operating Expenses | ||||||||||||
General and administrative expenses | 653,771 | 1,008,734 | 2,131,375 | 1,824,894 | ||||||||
Selling expenses | 521,782 | 648,929 | 1,047,116 | 1,103,603 | ||||||||
Research and development expenses | 142,685 | 138,241 | 285,370 | 274,708 | ||||||||
Total operating expenses | 1,318,238 | 1,795,904 | 3,463,861 | 3,203,205 | ||||||||
Income from operations | 2,903,153 | 2,371,242 | 5,543,529 | 9,569,499 | ||||||||
Other income (expenses) | ||||||||||||
Interest income | 87,016 | 65,774 | 156,705 | 142,086 | ||||||||
Subsidy income | 649,607 | 88,697 | 1,083,111 | 571,764 | ||||||||
Interest expenses | (248,332) | (176,393) | (403,144) | (340,188) | ||||||||
Others income (expenses) | (32) | 42,605 | (1,000) | 39,572 | ||||||||
Total other income (expenses) | 488,259 | 20,683 | 835,672 | 413,234 | ||||||||
Income before income tax | 3,391,412 | 2,391,925 | 6,379,201 | 9,982,733 | ||||||||
Income tax provision | 864,293 | 763,578 | 1,792,673 | 2,693,386 | ||||||||
Net income | 2,527,119 | 1,628,347 | 4,586,528 | 7,289,347 | ||||||||
Less: Net income attributable to non-controlling interests | 126,468 | 140,398 | 266,719 | 509,222 | ||||||||
NET INCOME ATTRIBUTABLE TO SKYPEOPLE FRUIT JUICE, INC. | $ | 2,400,651 | $ | 1,487,949 | $ | 4,319,809 | $ | 6,780,125 | ||||
Earnings per share: | ||||||||||||
Basic earnings per share | $ | 0.09 | $ | 0.06 | $ | 0.16 | $ | 0.25 | ||||
Diluted earnings per share | $ | 0.09 | $ | 0.06 | $ | 0.16 | $ | 0.25 | ||||
Weighted average number of shares outstanding | ||||||||||||
Basic | 25,820,951 | 25,690,402 | 25,755,677 | 25,690,402 | ||||||||
Diluted | 26,661,500 | 26,661,500 | 26,661,500 | 26,661,500 | ||||||||
Comprehensive Income | ||||||||||||
Net income | $ | 2,527,119 | $ | 1,628,347 | $ | 4,586,528 | $ | 7,289,347 | ||||
Foreign currency translation adjustment | (715,096) | 1,810,214 | (558,525) | 2,951,792 | ||||||||
Total Comprehensive income | 1,812,023 | 3,438,561 | 4,028,003 | 10,241,139 | ||||||||
Comprehensive income attributable to non-controlling interests | 96,851 | 203,924 | 243,583 | 617,726 | ||||||||
Comprehensive income attributable to SkyPeople Fruit Juice, Inc. | $ | 1,715,172 | $ | 3,234,637 | $ | 3,784,420 | $ | 9,623,413 | ||||
SKYPEOPLE FRUIT JUICE, INC. | ||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||
(Unaudited) | ||||||
For the Six Months Ended June 30, | ||||||
2012 | 2011 | |||||
CASH FLOWS FROM OPERATING ACTIVITIES | ||||||
Net income | $ | 4,586,528 | $ | 7,289,347 | ||
Adjustments to reconcile net income to net cash provided by operating activities | ||||||
Depreciation and amortization | 1,434,420 | 1,748,456 | ||||
Deferred income tax assets | 41,656 | - | ||||
Changes in operating assets and liabilities | ||||||
Accounts receivable | 20,855,020 | 24,269,825 | ||||
Other receivable | (38,559) | (302,428) | ||||
Advances to suppliers and other current assets | (83,436) | (38,099) | ||||
Inventories | 945,181 | 38,114 | ||||
Accounts payable | 62,809 | 704,376 | ||||
Accrued expenses | (1,545,105) | (1,994,692) | ||||
Income tax payable | (1,025,682) | (3,666,772) | ||||
Advances from customers | (178,673) | (508,717) | ||||
Net cash provided by operating activities | 25,054,159 | 27,539,410 | ||||
CASH FLOWS FROM INVESTING ACTIVITIES | ||||||
Additions to property, plant and equipment | (1,249,417) | (134,415) | ||||
Additions to land use right | (1,206,012) | - | ||||
Prepayment for other assets | (936,644) | (4,714,425) | ||||
Net cash used in investing activities | (3,392,073) | (4,848,840) | ||||
CASH FLOWS FROM FINANCING ACTIVITIES | ||||||
Decrease (increase) in restricted cash | 284,361 | (273,047) | ||||
Short-term notes payable | (284,361) | 273,047 | ||||
Proceeds from short-term bank loans | 6,341,757 | 7,585,239 | ||||
Repayment of short-term bank loans | (1,139,578) | (5,082,262) | ||||
Net cash provided by (used in) financing activities | 5,202,179 | 2,502,977 | ||||
Effect of change in exchange rate | (305,401) | 1,602,342 | ||||
NET INCREASE IN CASH AND CASH EQUIVALENTS | 26,558,864 | 26,795,889 | ||||
Cash and cash equivalents, beginning of period | 61,154,007 | 49,350,385 | ||||
Cash and cash equivalents, end of period | $ | 87,712,871 | $ | 76,146,274 | ||
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION | ||||||
Cash paid for interest | $ | 403,145 | $ | 340,188 | ||
Cash paid for income taxes | $ | 2,776,698 | $ | 6,360,158 | ||
SUPPLEMENTARY DISCLOSURE OF SIGNIFICANT NON-CASH TRANSACTION | ||||||
Transferred from other assets to property, plant and equipment and construction in process | $ | 5,225,307 | $ | 445,384 | ||
The notes in the Company's 10-Q are an integral part of these consolidated financial statements.
