XI'AN, China, November 15, 2011 /PRNewswire-Asia-FirstCall/ -- SkyPeople Fruit Juice, Inc. (NASDAQ: SPU) ("SkyPeople" or "the Company"), a processor and manufacturer of kiwifruit, apple, pear and other concentrated specialty fruit juices and manufacturer of Hedetang- and Qian Mei Duo-branded fruit beverages in the People's Republic of China ("PRC" or "China"), today announced financial results for its third quarter ended September 30, 2011.
Third Quarter 2011 Summary:
Third Quarter 2011 Summary Income Statement Results | ||||
| 3Q 2011 | 3Q 2010 | CHANGE | |
Net Sales | $17.4 million | $18.2 million | -4% | |
Gross Profit | $4.8 million | $6.6 million | -26% | |
Net Income Attributable to Common Shares | $1.8 million | $3.6 million | -49% | |
EPS (Diluted) | $0.07 | $0.15 | -53% | |
Diluted Avg. Shares Outstanding | 26.7 million | 23.5 million | +13% |
Yongke Xue, Chief Executive Officer of SkyPeople Fruit Juice, commented, "Both our third quarter and year-to-date revenues were slightly lower than the revenues in the year-ago comparable periods mainly due to the shortage of a variety of fresh fruit that somewhat hampered our revenues and drove up costs as a result of a relatively poor growing season and delayed harvest."
CEO Xue continued, "However, on the bright side, the sales of our concentrated apple and apple aroma tripled in the third quarter relative to the year-ago quarter and almost compensated for this loss in revenue across our segment base. In a strategic decision to strengthen our competitive positioning and gain market share, we reduced the prices of our fruit juice beverages at the end of the second quarter in order to drive volume gains and develop a deeper footprint in certain sectors. We will continue to invest in research and development to improve the quality of our fruit juice concentrates and fruit beverages in a continued effort to differentiate our products in the marketplace so as to enhance our long term growth."
Third Quarter 2011 Financial Results
Revenue for the three months ended September 30, 2011 was $17.4 million, a decrease of 4.1%, as compared to $18.2 million for the same sales period of the prior year. This decrease was primarily due to a decline in revenue in four of the Company's five primary product segments: fruit juice beverages (down $2.9 million), fresh fruits and vegetables (down $2.1 million), concentrated kiwifruit juice and kiwifruit puree (down $1.8 million) and concentrated pear juice (down $1.3 million). This was only partially offset by an increase in revenue in the Company's concentrated apple juice and apple aroma segment (up $6.6 million).
Gross profit was $4.8 million, a 26.5% decline from $6.6 million in the same period in 2010. Gross profit margins were 27.8% as compared with 36.2% in the third quarter of 2010. The year-over-year decline in gross margin was due to several reasons - a rise in the price of raw fruits which reduced the demand level of our products, the price reduction we instituted for our beverage products in May 2011, and the decreased sales of concentrated kiwifruit juice, kiwifruit puree, fresh fruits and vegetables and concentrated pear juice.
Operating expenses for the three months ended September 30, 2011 were $2.0 million, or 11.5% of sales, compared to $1.1 million, or 6.2% of sales in the same period last year. General and administrative expenses increased by 95.4% to $1.2 million for the three months ended September 30, 2011, mainly due to an increase in legal fees related to current pending litigations, and the Company's additional insurance for directors and officers which were purchased at higher premiums as such costs for China-based companies have risen sharply in the past year due to market conditions. Selling expenses increased by $0.4 million, or 168.6%, to $0.6 million due to an increase in payroll expenses as a result of higher headcount to support sales and marketing efforts of SkyPeople's beverage lines. Operating income dropped 47.9% to $2.8 million, representing an operating margin of 16.3% as compared to 30.0% for the corresponding period in fiscal 2010 .
Net income attributable to common shareholders and earnings per share for the third quarter of 2011 were $1.8 million and $0.07, respectively, compared to $3.6 million and $0.15, respectively, in the third quarter of 2010. Fully diluted shares were 26.7 million for the third quarter of 2011, compared to 23.5 million for the third quarter of 2010, reflecting the sale of 5.2 million shares of SkyPeople common stock in the third quarter of 2010.
Third Quarter 2011 Revenue by Segment | |||
| Three Months Ended September 30, | ||
| 2011 | 2010 | % Change |
Concentrated apple juice and apple aroma | $ 8,782 | $ 2,166 |
+305% |
Fruit juice beverages | 5,188 | 7,380 |
-30% |
Concentrated pear juice | 2,036 | 3,325 |
-39% |
Fresh fruits and vegetables | 897 | 3,005 |
-70% |
Concentrated kiwifruit juice and kiwifruit puree | 499 | 2,302 |
-78% |
Other | 35 | 11 |
218% |
Consolidated | $17,437 | $18,189 |
-4% |
|
Sales of concentrated apple juice increased to $8.8 million, a 305% increase from the $2.2 million in the year-ago quarter. The increase was primarily due to higher unit price, which has risen to $2,000 per ton in the third quarter of 2011 from $900 per ton a year ago, and revenue contribution from SkyPeople's Yingkou factory that became operational in the fourth quarter of 2010.
Sales of branded juice beverage sales, which include "Hedetang" and "Qian Mei Duo" bottled and boxed juices, decreased to $5.2 million from $7.4 million in the prior year. The decrease was mainly due to the lower prices which had been instituted as part of the strategy to increase market share. Pear juice concentrates sales $2.0 million, decreased of 39% from the comparable year-ago period, attributable to the decline in the quantity sold as the production capacity of the Jingyang factory was impaired due to the construction of a new production line and the unusually severe weather.
Sales from our fresh fruits and vegetables decreased to $0.9 million for the third quarter of 2011, a drop of 70%, compared to $3 million for the same period of fiscal 2010, as the market price of fresh fruits was higher in the current quarter and the Company consequently reduced its purchase of fresh fruits to control costs in 2011. Sales of kiwi concentrates and purees were $0.5 million, down from $2.3 million in the prior year. The decrease was due to a shortage of fresh kiwi as a result of the harvest season, and as a result our squeezing season, being delayed from September to mid- October due to poor weather conditions this year.
Summary Income Statement Results for the Nine Months Ended September 30, 2011 | |||
| 9 Months Ended September 30, | CHANGE | |
| 2011 | 2010 |
|
Net Sales | $49.1 million | $49.3 million | (0.6%) |
Gross Profit | $17.6 million | $20.1 million | (12%) |
Net Income Attributable to Common Shares | $8.6 million | $10.0 million | (14%) |
Adjusted Net Income* | $8.6 million | $12.1 million | (29%) |
EPS (Diluted) | $0.32 | $0.46 | (30%) |
Adjusted EPS* | $0.32 | $0.55 | (42%) |
Diluted Avg. Shares Outstanding | 26.7 million | 21.9 million | 22% |
*Adjusted net income and adjusted EPS for the nine months ended September 30, 2010 excludes $2.1 |
Net sales for the nine months ended September 30, 2011 were $49.1 million, a 0.4% decrease from $49.3 million for the corresponding period of last year. This decrease was primarily due to a decrease in sales of concentrated kiwifruit juice pear juice and kiwifruit puree and fresh fruits. Gross profit was $17.6 million for the nine months ended September 30, 2011 compared to $20.1 million for the nine months ended September 30, 2010, with consolidated gross margins of 35.8% and 40.8%, respectively. The 483 basis point year-over-year decline in gross margin was attributable to the reduced gross margins of kiwifruit concentrate and puree, pear concentrate and fruit juice beverages. The decline was partially offset by an increase in the gross margin of apple juice concentrate and apple aroma.
Operating income for the nine months were $12.4 million, a decline of 23.5% from the comparable year ago period, while operating margin was 25.3%, a decline of 231 basis points from the previous nine months 32.9% operating margin.
Net income attributable to SkyPeople was $8.6 million for the nine months ended September 30, 2011 compared to $10.0 million for the same period last year. Earnings per share were $0.32 and $0.46 in the nine month periods ended September 30, 2011 and 2010, respectively. Excluding a $2.1 million non-cash loss from the change in fair value of warrant liabilities in the nine months ended September 30, 2010, adjusted net income and adjusted EPS were down 29% and 42% year-over-year, respectively.
Nine Month 2011 Revenue by Segment | |||||
| Nine Months Ended September 30, |
| |||
| 2011 | 2010 | % Change | ||
Concentrated apple juice and apple aroma | $ | 14,842 |
$ | 7,785 |
+91% |
Fruit juice beverages |
| 17,898 |
| 15,073 | +19% |
Concentrated pear juice |
| 7,949 |
| 9,150 | -13% |
Fresh fruits and vegetables |
| 2,354 |
| 6,573 | -64% |
Concentrated kiwifruit juice and kiwifruit puree |
| 5,195 |
| 8,891 | -42% |
Other |
| 825 |
| 1,834 | -55% |
Consolidated | $ | 49,063 | $ | 49,306 | -1% |
The increase in sales of apple related products to $14.8 million for the first nine months of 2011 was primarily due to higher unit price and revenue contribution from the Company's Yingkou factory that became operational in the fourth quarter of 2010. Fruit juice beverage sales for the nine months ended September 30, 2011 increased by $2.8 million to $17.9 million, representing an increase in sales of 19% as compared to the first nine months of 2010. This increase was due to a rise in market demand for fruit juice beverages as well as the introduction of a new line of juices, Qian Mei Duo, in the first quarter of 2011, though partially offset by SkyPeople's lowering of its fruit juice beverages in the second quarter of 2011. Revenue from the Company's fresh fruits and vegetables segment decreased 64% to $2.4 million as a result of lower volume due to a rise in 2011 through the nine months of the market price of fresh fruits relative to the same time period in 2010. Concentrated kiwifruit juice and kiwifruit puree sales for the nine months ended September 30, 2011 were down 42% to $5.2 million due to a shortage of fresh kiwi fruit as a result of our squeezing season being delayed due to poor weather conditions as discussed above.
Financial Condition
As of September 30, 2011, the Company had $76.4 million in cash and cash equivalents, up from $49.4 million as of December 31, 2010. Working capital was $87.1 million compared to $78.6 million as of December 31, 2010. The current ratio was 5.0 at September 30, 2011 as compared to 4.3 at December 31, 2010. Accounts receivable improved to $21.5 million, compared to $46.0 million as of December 31, 2010. The days of account receivable outstanding decreased from 132 days in the third quarter of 2010 to 113 days in the third quarter of 2011. SkyPeople had $13.1 million in short term loans with local and provincial banks in Shaanxi and Liaoning Provinces as of September 30, 2011. Shareholders' equity was $136.7 million as of September 30, 2011, an 11% increase from $123.2 million reported on December 31, 2010.
Capacity Expansion Update
The Company's growth plan includes building an integrated manufacturing infrastructure to support higher production volumes for its juice beverages and concentrates. SkyPeople has several projects in various stages of planning and completion that it is able to fund using the proceeds from its 2010 public offering operating activities . The Company reviews these projects regularly so as to assess their feasibility and ongoing progress based on market conditions and the associated costs of the projects. SkyPeople's major projects are as follows:
| ||
SkyPeople Fruit Juice Huludao Wonder Projects | Estimated Completion | Estimated Capital |
- A refrigeration storage unit for the storage of concentrated fruit juices and | 3Q 2012 | $4.6 |
- 30 ton/hour comprehensive fruits and vegetables processing line | 3Q 2012 | 3.0 |
- A fruit juice beverage production line of 6,000 bottles/hour | 4Q 2011 | 3.0 |
- Environmental project (waste water treatment facility for concentrated | 3Q 2012 | 8.0 |
Subtotal: Estimate of all Huludao Wonder projects |
| $18.6 |
Hulodao Wonder is one of two factories that the Company operates that produces apple juice products. The Company is planning to develop the following priority projects as associated with this facility: [Note: please revise the following to be consistent with the final version of the 10-Q.
- Refrigeration Storage Unit and a Concentrated Fruit Juice Mixing Center. In the fourth quarter of 2011, the Company plans to build a refrigeration storage unit for the storage of concentrated fruit juices and fresh fruits and vegetables. The unit will also serve as a facility for developing mixed fruit concentrates. SkyPeople expects to complete this project in the third quarter of 2012. The estimated expenditures for this project based on a current estimate of material and labor costs is $4.6 million.
- 30 ton/hour Comprehensive Fruits and Vegetables Processing Line. As a result of new PRC industry regulations released in March 2011, the total industry production of concentrated apple juice business will likely be curtailed. Therefore, the Company plans to change its existing 30 ton/hour concentrated apple juice line into a 30 ton/hour comprehensive fruits and vegetables processing line by adding additional equipment and machinery. The estimated investment for this project is $3.0 million. This project is expected to start in the first quarter of 2012 and is estimated to be completed in the third quarter of 2012.
- Fruit Juice Production Beverage Line of 6,000 bottles/hour. The Company started the construction of a fruit juice beverage line in September of 2010. The beverage line will produce a variety of fruit juice beverages. The company has completed the infrastructure construction and equipment installation and is in the process of testing the equipment. The delay in obtaining government approval for the construction resulted in a slight delay the previously projected timetable and the Company now expects the new beverage production line to commence operation in the forth quarter of 2011. The estimated capital expenditures for this project is $3 million.
- Environmental Project. This project was also started in September of 2010. The environmental project consists of a wastewater processing facility that is required by the state and local environmental protection agencies in the production of fruit and vegetable juice concentrates. The estimated expenditures based on current material and labor costs is $8.0 million. The completion of this project is expected in the second or third quarter of 2012.
As of September 30, 2011, the Company has spent $1.6 million on the work associated with of Huludao Wonder Projects, mainly for the purchase of machinery and equipment and construction in progress.
SkyPeople plans to add another concentrated pear juice line that can process 20 tons of pears per hour. As of September 30, 2011, SkyPeople spent $5.37 million in making payments under these contracts. The Company expects to operate this line in the fourth quarter of 2011.
Recent Developments
Third Quarter 2011 Conference 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 conference the Pass Code.
Conference Call | |||
Date: | Wednesday, November 16, 2011 | ||
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: | 27718766 |
A playback will be available through November 30, 2011. 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 27718766 for the replay.
About SkyPeople Fruit Juice, Inc.
SkyPeople Fruit Juice, Inc., a Florida company, through its wholly-owned subsidiary Pacific Industry Holding Group Co., Ltd., 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 (including fruit purees, fruit puree concentrates, and clear fruit juice concentrates), fruit beverages (including fruit juice beverages and fruit cider beverages), and other fruit related products (including primarily organic and non-organic fresh fruits, kiwifruit seeds and apple aroma) in and from the PRC. 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 brand, Hedetang, which is a registered trademark in the PRC, is positioned as a high quality, healthy and nutritious end-use juice beverage. For more information, please visit http://www.skypeoplefruitjuice.com .
About Non-GAAP Financial Measures
GAAP results for three and nine month periods ended September 30, 2011 and 2010 include the significant non-cash charges which do not relate to the operation of the business including non-cash expenses related to the change in fair value of derivative financial instruments. These are non-cash events which do not affect the Company's operations. To supplement the Company's consolidated financial statements presented on a GAAP basis, the Company has provided non-GAAP financial information excluding the impact of these items in this release, which are adjusted net income from continuing operations, adjusted diluted earnings per share from continuing operations, adjusted net income attributable to common shareholders and adjusted earnings per share attributable to common shareholders. The Company's management believes that these non-GAAP measures provide investors with a better understanding of how the results relate to the Company's historical performance. The additional adjusted information is not meant to be considered in isolation or as a substitute for GAAP financials. The adjusted financial information that the Company provides also may differ from the adjusted information provided by other companies. Management believes that these adjusted financial measures are useful to investors because they exclude non-cash expenses that management excludes when it internally evaluates the performance of the Company's business and makes operating decisions as these measures provide a consistent method of comparison to historical periods. As a result, the provision of these adjusted measures allows investors to evaluate the Company's performance using the same methodology and information as that used by the Company's management. Moreover, management believes that these adjusted measures reflect the essential operating activities of the Company. Adjusted measures are subject to inherent limitations because they do not include all of the expenses included under GAAP and because they involve the exercise of judgment of which charges are excluded from the adjusted financial measure. However, the Company's management compensates for these limitations by providing the relevant disclosure of the items excluded. A reconciliation of each adjusted measure to the nearest GAAP measure appears in the table at the end of this release.
SKYPEOPLE FRUIT JUICE, INC. | ||||||
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| September 30, |
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| December 31, | ||
ASSETS |
|
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|
|
| (Unaudited) |
|
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| |
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CURRENT ASSETS |
|
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|
|
|
|
Cash and equivalents | $ | 76,425,179 |
|
| $ | 49,350,385 |
|
|
|
|
|
|
|
Restricted cash |
| 1,207,328 |
|
|
| 505,581 |
Trade accounts receivable, less allowance for doubtful accounts of $45930 |
| 21,492,651 |
|
|
| 46,029,962 |
Other receivables |
| 1,296,059 |
|
|
| 1,272,648 |
Inventories, net |
| 8,082,189 |
|
|
| 5,436,117 |
Prepaid expenses and other current assets |
| 431,753 |
|
|
| 31,604 |
Total current assets |
| 108,935,159 |
|
|
| 102,626,297 |
|
|
|
|
|
|
|
PROPERTY, PLANT AND EQUIPMENT, Net |
| 35,670,262 |
|
|
| 36,337,251 |
LAND USAGE REIGHT, Net |
| 6,632,390 |
|
|
| 6,541,825 |
OTHER ASSETS |
| 7,227,011 |
|
|
| 1,694,486 |
TOTAL ASSETS | $ | 158,464,822 |
|
| $ | 147,199,859 |
|
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|
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY |
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CURRENT LIABILITIES |
|
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Accounts payable | $ | 3,163,526 |
|
| $ | 3,446,797 |
Accrued expenses |
| 3,518,630 |
|
|
| 4,871,934 |
Income tax payable |
| 675,831 |
|
|
| 4,377,039 |
Advances from customers |
| 54,654 |
|
|
| 573,609 |
Short-term bank loans |
| 13,159,956 |
|
|
| 10,238,856 |
Short-term notes payable |
| 1,185,023 |
|
|
| 505,581 |
Total current liabilities |
| 21,757,620 |
|
|
| 24,013,816 |
|
|
|
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|
|
Commitments and contingencies (Note 9) |
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|
STOCKHOLDERS' EQUITY |
|
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|
Preferred Stock, $0.001 par value; 10,000,000 shares authorized; 1,456,647 |
| 1,457 |
|
|
| 1,457 |
Common Stock, $0.001 par value; 66,666,666 shares authorized; 25,690,402 |
| 25,690 |
|
|
| 25,690 |
Additional Paid-in capital |
| 59,189,374 |
|
|
| 59,189,374 |
Retained earnings |
| 60,011,823 |
|
|
| 51,418,283 |
Accumulated other comprehensive income |
| 11,951,211 |
|
|
| 7,823,967 |
Total SkyPeople Fruit Juice, Inc. stockholders' equity |
| 131,179,555 |
|
|
| 118,458,771 |
Non-controlling interests |
| 5,527,647 |
|
|
| 4,727,272 |
TOTAL EQUITY |
| 136,707,202 |
|
|
| 123,186,043 |
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ | 158,464,822 |
|
| $ | 147,199,859 |
SKYPEOPLE FRUIT JUICE, INC. | |||||||||||||
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| Three Months Ended |
| Nine Months Ended | |||||||||
|
| September 30, |
|
| September 30, |
| September 30, |
| September 30, | ||||
|
| 2011 |
|
| 2010 |
| 2011 |
| 2010 | ||||
Revenue |
| $ | 17,437,105 |
|
| $ | 18,188,781 |
| $ | 49,062,726 |
| $ | 49,306,860 |
Cost of sales |
|
| 12,595,983 |
|
|
| 11,604,046 |
|
| 31,448,900 |
|
| 29,201,392 |
Gross Margin |
|
| 4,841,122 |
|
|
| 6,584,735 |
|
| 17,613,826 |
|
| 20,105,468 |
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Operating Expenses |
|
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General and administrative expenses |
|
| 1,217,206 |
|
|
| 622,883 |
|
| 3,042,100 |
|
| 2,237,222 |
Selling expenses |
|
| 638,211 |
|
|
| 237,599 |
|
| 1,741,814 |
|
| 816,477 |
Research and development expenses |
|
| 145,413 |
|
|
| 271,453 |
|
| 420,121 |
|
| 816,786 |
Total operating expenses |
|
| 2,000,830 |
|
|
| 1,131,935 |
|
| 5,204,035 |
|
| 3,870,485 |
|
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Income from Operations |
|
| 2,840,292 |
|
|
| 5,452,800 |
|
| 12,409,791 |
|
| 16,234,983 |
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Other Income (Expenses) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense |
|
| (308,447) |
|
|
| (214,348) |
|
| (648,635) |
|
| (654,264) |
Interest income |
|
| 81,720 |
|
|
| 20,355 |
|
| 223,806 |
|
| 67,108 |
Subsidy income |
|
| 50,632 |
|
|
| 132,984 |
|
| 622,396 |
|
| 2,381,389 |
Other income (expenses) |
|
| (118) |
|
|
| (46,725) |
|
| 39,454 |
|
| (45,291) |
Change in fair value of warrant liabilities |
|
| - |
|
|
| - |
|
| - |
|
| (2,103,832) |
Total other expenses |
|
| (176,213) |
|
|
| (107,734) |
|
| 237,021 |
|
| (354,890) |
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Income Before Income Tax |
|
| 2,664,079 |
|
|
| 5,345,066 |
|
| 12,646,812 |
|
| 15,880,093 |
|
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|
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|
|
|
|
Income Tax Expenses |
|
| 726,239 |
|
|
| 1,395,109 |
|
| 3,419,625 |
|
| 4,823,980 |
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|
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Net Income |
| $ | 1,937,840 |
|
| $ | 3,949,957 |
| $ | 9,227,187 |
| $ | 11,056,113 |
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|
Less: Net income attributable to noncontrolling interests |
|
| 124,420 |
|
|
| 378,311 |
|
| 633,642 |
|
| 1,056,038 |
Net Income Attributable to Common Shares |
| $ | 1,813,420 |
|
| $ | 3,571,646 |
| $ | 8,593,545 |
| $ | 10,000,075 |
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Earnings Per Share: |
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Basic earnings per share |
| $ | 0.07 |
|
| $ | 0.15 |
| $ | 0.32 |
| $ | 0.46 |
Diluted earnings per share |
| $ | 0.07 |
|
| $ | 0.15* |
| $ | 0.32 |
| $ | 0.46* |
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Weighted Average Shares Outstanding |
|
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|
Basic |
|
| 25,690,402 |
|
|
| 22,437,576 |
|
| 25,690,402 |
|
| 20,336,417 |
Diluted |
|
| 26,661,501 |
|
|
| 23,510,552 |
|
| 26,661,501 |
|
| 21,895,610 |
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Comprehensive Income |
|
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Net income |
| $ | 1,937,840 |
|
| $ | 3,949,957 |
| $ | 9,227,187 |
| $ | 11,056,113 |
Foreign currency translation adjustment |
|
| 1,342,180 |
|
|
| 1,334,576 |
|
| 4,293,977 |
|
| 1,833,711 |
Comprehensive Income |
| $ | 3,280,020 |
|
| $ | 5,284,533 |
| $ | 13,521,164 |
| $ | 12,889,824 |
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|
|
|
Comprehensive income attributable to the noncontrolling interest |
|
| (182,649) |
|
|
| (511,193) |
|
| (800,375) |
|
| (1,158,522) |
Comprehensive income attributable to SkyPeople Fruit Juice, Inc. |
| $ | 3,097,371 |
|
| $ | 4,773,340 |
| $ | 12,720,789 |
| $ | 11,731,302 |
SKYPEOPLE FRUIT JUICE, INC.
| ||||||
|
| September 30, |
| September 30, | ||
|
| 2011 |
| 2010 | ||
|
|
|
|
|
|
|
Cash Flow from Operating Activities |
|
|
|
|
|
|
Net income |
| $ | 9,227,187 |
| $ | 11,056,113 |
Adjustments to reconcile net income to net cash flow provided by (used in) operating activities |
|
|
|
|
|
|
Depreciation and amortization |
|
| 2,674,081 |
|
| 1,665,932 |
Change in fair value of warrant liabilities |
|
| - |
|
| 2,103,832 |
Changes in operating assets and liabilities |
|
|
|
|
|
|
Accounts receivables |
|
| 25,987,583 |
|
| (1,282,841) |
Other receivables |
|
| 19,660 |
|
| (2,171,733) |
Advances to suppliers and other current assets |
|
| (399,945) |
|
| 1,463,095 |
Inventories |
|
| (2,442,658) |
|
| (1,814,795) |
Accounts payables |
|
| (398,972) |
|
| 470,799 |
Accrued expenses |
|
| (1,491,478) |
|
| (1,788,675) |
Advances from customers |
|
| (535,017) |
|
| (736,649) |
Income taxes payable |
|
| (3,825,519) |
|
| (683,110) |
Net cash provided by operating activities |
|
| 28,814,922 |
|
| 8,281,968 |
|
|
|
|
|
|
|
Cash Flow from Investing Activities |
|
|
|
|
|
|
Prepayment for other assets |
|
| (5,894,322) |
|
| (7,873,540) |
Additions to property, plant and equipment |
|
| (138,927) |
|
| (1,087,965) |
Additions to construction progress |
|
| (46,437) |
|
| - |
Net cash used in investing activities |
|
| (6,079,686) |
|
| (8,961,505) |
|
|
|
|
|
|
|
Cash Flow from Financing Activities |
|
|
|
|
|
|
Restricted cash |
|
| (679,744) |
|
| - |
Proceeds from stock issuance |
|
| - |
|
| 27,014,217 |
Proceeds from short-term bank loans |
|
| 7,733,603 |
|
| 6,895,231 |
Repayment of short-term loan bank loans |
|
| (5,181,670) |
|
| (2,902,480) |
Short-term notes payable |
|
| 657,590 |
|
| 739,130 |
Net cash provided by financing activities |
|
| 2,529,779 |
|
| 31,746,098 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET INCREASE IN CASH AND CASH EQUIVALENTS |
|
| 25,265,015 |
|
| 31,066,561 |
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD |
|
| 49,350,385 |
|
| 14,404,500 |
Effect of Changes in Exchange Rate |
|
| 1,809,779 |
|
| 621,740 |
CASH AND CASH EQUIVALENTS, END OF PERIOD |
| $ | 76,425,179 |
| $ | 46,092,801 |
|
|
|
|
|
|
|
Supplementary Information Of Cash Flows |
|
|
|
|
|
|
Cash paid for interest |
| $ | 648,635 |
| $ | 638,181 |
cash paid for tax |
| $ | 7,245,144 |
| $ | 5,505,089 |
Change in fair value of warrant liability |
|
| - |
|
| (2,103,832) |
Exercise of warrants |
|
| - |
|
| 5,481,749 |
Transfer from other assets to property, plant and equipment and construction in progress |
|
| 457,070 |
|
| 2,096,507 |
RECONILIATION OF NON-GAAP FINANCIAL MESAURES | |||||
| Three Months Ended September 30 |
| Nine Months Ended September 30 | ||
Adjusted Net Income (Loss) and Diluted EPS | 2011 | 2010 |
| 2011 | 2010 |
|
|
|
|
|
|
GAAP Net Income to Common Shares | $1,813,420 | $3,571,646 |
| $8,593,545 | $10,000,075 |
Add Back: Change in fair value of warrants liabilities |
|
|
|
|
$2,103,832 |
Adjusted Amount Net Income | $1,813,420 | $3,571,646 |
| $8,593,545 | $12,103,907 |
Weighted average number of shares - Basic | 25,690,402 | 22,437,576 |
| 25,690,402 | 20,336,417 |
Weighted average number of shares - Diluted | 26,661,501 | 23,510,552 |
| 26,661,501 | 21,895,610 |
Adjusted Diluted EPS | $0.07 | $0.15 |
| $0.32 | $0.55 |