omniture

Tiens Biotech Group (USA) Reports First Quarter Results

2011-05-17 06:13 1446

TIANJIN, China, May 17, 2011 /PRNewswire-Asia/ -- Tiens Biotech Group (USA), Inc. (the "Company" or "Tiens", NYSE AMEX: TBV), www.tiens-bio.com, a company dedicated to the research, development, manufacturing, and marketing of nutrition supplement products, including wellness products and dietary supplements, today announced financial results for the quarter ended March 31, 2011.

Revenue for the first quarter of 2011 was $13.1 million, compared to $11.4 million for 2010.  

Net income for first quarter of 2011 was $2.9 million, or $0.04 per share, compared to $3.6 million, or $0.05 per share for 2010.

The 14.4% increase in revenue for the first quarter of 2011 mainly resulted from a 21.2% increase in domestic sales as compared to the year-ago period. There were two primary reasons for the robustness of the domestic market. First, distributors rushed to increase inventory in advance of the planned price increases for some products that were scheduled for March 2011. Additionally, Tiens began to see the effects of the long-awaited direct selling license that was awarded by the Ministry of Commerce of the People's Republic of China on March 11, 2011.  On the international front, Tiens experienced a modest 4.6% increase as a result of increased sales to South Africa.

Net income, however, was negatively impacted by an increase of $1.4 million in selling, general and administrative expenses. This increase was primarily responsible for the 18.3% decrease in net income for the quarter and was mainly due to increases in depreciation related to the transfer of construction in progress to fixed assets.

Other Highlights

Cost of sales were $4.1 million in 2011 compared to $3.4 million in 2010, an increase of 20.2%. This increase was primarily due to the corresponding increase in sales. However, cost of sales rose at a higher rate than sales overall, as a result of a reduction in sales of the Company's higher margin products.  

Gross profit increased by 11.9% to $8.9 million in 2011, compared to $8.0 million in 2010. The gross profit margin for 2011 was 68.3% compared to 69.8% for the same period in 2010.

Selling, general and administrative expenses increased by 39.3% to $4.9 million in 2011, compared to $3.5 million in 2010. The increase was primarily due to the aforementioned increases in depreciation.

As of March 31, 2011, Tiens had $130.7 million of retained earnings and total shareholders' equity of $190.1 million.

Jinyuan Li, Chairman, President and CEO of Tiens, said, "We are pleased by the increase in sales this quarter and expect our new domestic selling license to be a growing contributor to revenue in the months and years ahead. In the international arena, we are confident that our operations will gradually improve as worldwide economic conditions continue to recover. Likewise, operational improvements made at the distributor level should also boost results over time.  Our commitment to both domestic and international growth remains steadfast as we continue to manage our business through the economic recovery and look ahead toward further execution of our strategic growth plans in both China and abroad."

About Tiens Biotech Group (USA), Inc. www.tiens-bio.com

Tiens Biotech Group (USA), Inc. (NYSE AMEX: TBV) conducts its business operations from Tianjin, People's Republic of China. Tiens primarily engages in the research, development, manufacturing, and marketing of nutrition supplement products, including wellness products and dietary supplements.

Tiens derives its revenues principally from product sales to affiliated companies in China and internationally in 45 countries. Since its establishment, Tiens has developed and produced 37 nutrition supplements, which include wellness products and dietary supplements. Tiens develops its products at its own product research and development center, which employs highly qualified professionals in the fields of pharmacology, biology, chemistry and fine chemistry. Tiens has obtained all required certificates and approvals from government regulatory agencies to manufacture and sell its products in China.

In China, Tiens conducts the marketing and sales of its products through its affiliated company, Tianshi Engineering. Tianshi Engineering markets and sells Tiens' products in China through chain stores, domestic affiliated companies, and its 87 branches.  Outside of China, Tiens sells its products to affiliated companies in 45 countries who in turn sell through an extensive direct sales force, or multi-level marketing sales force. The Company's direct sales marketing program is subject to governmental regulation in each of these countries.  

Certain statements in this press release constitute "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities and Exchange Act of 1934. Such forward-looking statements are not necessarily indicative of future financial results, and may involve known and unknown risks, uncertainties and other factors, which may cause the actual results, performance or achievements of the Company, to be materially different from any future results, performance, or achievements expressed or implied by such forward-looking statements. The Company's future operating results are dependent upon many factors, including but not limited to: (i) the Company's ability to obtain sufficient capital or a strategic business arrangement to fund its expansion plans; (ii) the Company's ability to build the management and human resources and infrastructure necessary to support the growth of its business; (iii) competitive factors and developments beyond the Company's control; (iv) whether the Company continues to experience delays in the export clearance of its products; and (v) other risk factors discussed in the Company's periodic filings with the Securities and Exchange Commission which are available for review at http://www.sec.gov.

CONTACT:

 

 

 

 

 

 

Investor Relations

 

Debra Berliner

 

 

Tiens Biotech Group (USA), Inc.

 

G. S. Schwartz & Co.

 

 

Tel:   +86-22-8213-3118

 

Tel: 212-725-4500

 

 

Fax:  +86-22-8213-7914

 

Fax: 212-725-9188

 

 

Email: investor@tiens-bio.com

 

Email: dberliner@schwartz.com

 

 

http://www.tiens-bio.com

 

 

 

 

 


-Tables Follow-

TIENS BIOTECH GROUP (USA), INC. AND SUBSIDIARIES

 

 

 

 

CONSOLIDATED STATEMENTS OF INCOME AND OTHER COMPREHENSIVE INCOME

 

 

FOR THE THREE MONTHS ENDED MARCH 31, 2011 AND 2010 (UNAUDITED)

 

 

 

 

 

 

 

 

 

Three months ended March 31,

 

 

 

2011

 

 

2010

 

 

 

 

 

 

 

REVENUE-RELATED PARTIES

 

$        13,050,225

 

 

$        11,403,363

 

 

 

 

 

 

 

COST OF SALES-RELATED PARTIES

 

4,136,399

 

 

3,440,881

 

 

 

 

 

 

 

GROSS PROFIT

 

8,913,826

 

 

7,962,482

 

 

 

 

 

 

 

SELLING, GENERAL AND ADMINISTRATIVE EXPENSES

 

4,870,886

 

 

3,497,547

 

 

 

 

 

 

 

INCOME FROM OPERATIONS

 

4,042,940

 

 

4,464,935

 

 

 

 

 

 

 

    Interest expense

 

(131,636)

 

 

-

 

 

    Interest income

 

7,992

 

 

1,872

 

 

    Other expense

 

(529,185)

 

 

(253,710)

 

 

OTHER EXPENSE, NET

 

(652,829)

 

 

(251,838)

 

 

 

 

 

 

 

INCOME BEFORE PROVISION FOR INCOME TAXES

 

3,390,111

 

 

4,213,097

 

 

 

 

 

 

 

PROVISION FOR INCOME TAXES

 

446,299

 

 

609,502

 

 

 

 

 

 

 

NET INCOME

 

2,943,812

 

 

3,603,595

 

 

 

 

 

 

 

       LESS: Net income attributable to the noncontrolling interest

 

(190,204)

 

 

(342,057)

 

 

 

 

 

 

 

NET INCOME ATTRIBUTABLE TO THE COMPANY

 

2,753,608

 

 

3,261,538

 

 

 

 

 

 

 

OTHER COMPREHENSIVE INCOME:

 

 

 

 

 

    Foreign currency translation adjustment

 

1,012,022

 

 

14,970

 

 

 

 

 

 

 

COMPREHENSIVE INCOME ATTRIBUTABLE

 

 

 

 

 

TO THE COMPANY

 

3,765,630

 

 

3,276,508

 

 

 

 

 

 

 

COMPREHENSIVE INCOME ATTRIBUTABLE

 

 

 

 

 

TO THE NONCONTROLLING INTEREST

 

257,361

 

 

343,398

 

 

 

 

 

 

 

COMPREHENSIVE INCOME

 

$         4,022,991

 

 

$         3,619,906

 

 

 

 

 

 

 

EARNINGS PER SHARE,

 

 

 

 

 

BASIC AND DILUTED

 

$ 0.04

 

 

$ 0.05

 

 

 

 

 

 

 

WEIGHTED AVERAGE NUMBER OF SHARES,

 

 

 

 

 

BASIC AND DILUTED

 

71,333,586

 

 

71,333,586

 

 

 

 

 

 

 

The accompanying notes are an integral part of this statement.

 

 

 

 

 

 



TIENS BIOTECH GROUP (USA), INC. AND SUBSIDIARIES

 

 

 

 

CONSOLIDATED BALANCE SHEETS

 

 

AS OF MARCH 31, 2011 (UNAUDITED) AND DECEMBER 31, 2010 (AUDITED)

 

 

 

 

 

 

 

 

 

 

 

 

 

March 31,

 

 

December 31,

 

 

 

2011

 

 

2010

 

 

 

(Unaudited)

 

 

(Audited)

 

 

ASSETS

 

 

 

 

 

CURRENT ASSETS:

 

 

 

 

 

  Cash

 

$        9,691,411

 

 

$     10,155,522

 

 

  Accounts receivable, trade-related parties, net of

 

 

 

 

 

     allowance for doubtful accounts of $4,152,284 and $3,869,617

 

 

 

 

 

     as of March 31, 2011 and December 31, 2010, respectively

 

11,279,779

 

 

10,012,861

 

 

  Inventories

 

6,801,856

 

 

5,703,349

 

 

  Other receivables

 

942,959

 

 

1,045,952

 

 

  Other receivables-related parties

 

17,327,387

 

 

17,376,522

 

 

  Employee advances

 

127,314

 

 

170,842

 

 

  Prepaid expenses, net

 

356,817

 

 

415,208

 

 

  Prepaid taxes

 

3,689,268

 

 

3,646,140

 

 

     Total current assets

 

50,216,791

 

 

48,526,396

 

 

 

 

 

 

 

PROPERTY, PLANT AND EQUIPMENT, net

 

72,098,917

 

 

72,037,542

 

 

 

 

 

 

 

OTHER ASSETS:

 

 

 

 

 

  Construction in progress

 

130,736,007

 

 

128,715,283

 

 

  Construction deposits

 

20,177,749

 

 

12,490,855

 

 

  Intangible assets, net

 

12,991,801

 

 

12,987,000

 

 

  Other assets

 

10,302,761

 

 

10,721,040

 

 

     Total other assets

 

174,208,318

 

 

164,914,178

 

 

 

 

 

 

 

        Total assets

 

$    296,524,026

 

 

$    285,478,116

 

 

 

 

 

 

 

LIABILITIES AND SHAREHOLDERS' EQUITY

 

 

 

 

 

 

 

 

 

 

CURRENT LIABILITIES:

 

 

 

 

 

  Accounts payable

 

$      14,719,467

 

 

$      14,120,791

 

 

  Advances from customers-related parties

 

7,546,016

 

 

8,688,877

 

 

  Wages and benefits payable

 

1,584,986

 

 

1,613,782

 

 

  Short-term debt

 

7,610,000

 

 

3,024,800

 

 

  Income taxes payable

 

717,129

 

 

490,782

 

 

  Contractor deposits

 

195,485

 

 

209,376

 

 

  Contractor payables

 

26,888,982

 

 

28,134,711

 

 

  Other payables

 

1,109,025

 

 

1,113,416

 

 

  Other payables-related parties

 

5,337,033

 

 

1,417,516

 

 

     Total current liabilities

 

65,708,123

 

 

58,814,051

 

 

 

 

 

 

 

NON-CURRENT LIABILITIES

 

 

 

 

 

  Long term debt

 

18,568,400

 

 

18,451,280

 

 

  Deferred income

 

11,400,523

 

 

11,473,853

 

 

     Total non current liabilities

 

29,968,923

 

 

29,925,133

 

 

 

 

 

 

 

     Total liabilities

 

95,677,046

 

 

88,739,184

 

 

 

 

 

 

 

EQUITY:

 

 

 

 

 

  Shareholders' equity of the Company:

 

 

 

 

 

     Common stock, $0.001 par value, 250,000,000 shares authorized,

 

 

 

 

 

        71,333,586 issued and outstanding, respectively

 

71,334

 

 

71,334

 

 

     Paid-in-capital

 

18,428,796

 

 

18,349,908

 

 

     Statutory reserves

 

16,465,144

 

 

16,465,144

 

 

     Retained earnings

 

130,711,559

 

 

127,957,951

 

 

     Accumulated other comprehensive income

 

24,405,648

 

 

23,393,626

 

 

        Total shareholders' equity of the Company

 

190,082,481

 

 

186,237,963

 

 

     Noncontrolling interest

 

10,764,499

 

 

10,500,969

 

 

     Total equity

 

200,846,980

 

 

196,738,932

 

 

        Total liabilities and equity

 

$     296,524,026

 

 

$     285,478,116

 

 

 

 

 

 

 

The accompanying notes are an integral part of this statement.

 

 

 

 

 

 



TIENS BIOTECH GROUP (USA), INC. AND SUBSIDIARIES

 

 

 

 

CONSOLIDATED STATEMENTS OF CASH FLOWS

 

 

FOR THE THREE MONTHS ENDED MARCH 31, 2011 AND 2010 (UNAUDITED)

 

 

 

 

 

 

 

 

Three months ended March 31,

 

 

 

2011

 

 

2010

 

 

CASH FLOWS FROM OPERATING ACTIVITIES:

 

 

 

 

 

  Net income  

 

$       2,943,812

 

 

$      3,603,595

 

 

  Adjustments to reconcile net income to cash

 

 

 

 

 

     provided by (used in) operating activities:

 

 

 

 

 

        Deferred income

 

(145,776)

 

 

-

 

 

        Provision for doubtful accounts

 

257,427

 

 

202,247

 

 

        Depreciation

 

1,117,611

 

 

417,469

 

 

        Amortization

 

85,020

 

 

83,557

 

 

        loss on assets written off

 

655,611

 

 

-

 

 

        Gain on sale of assets

 

-

 

 

(15,082)

 

 

        Rental expense borne by a related party

 

84,834

 

 

81,749

 

 

      (Increase) decrease in assets:

 

 

 

 

 

        Accounts receivable, trade-related parties

 

(1,457,625)

 

 

4,933,543

 

 

        Other receivables

 

109,344

 

 

93,577

 

 

        Other receivables-related parties

 

141,586

 

 

(1,200,159)

 

 

        Inventories

 

(1,050,293)

 

 

304,560

 

 

        Employee advances

 

44,495

 

 

13,935

 

 

        Prepaid expense

 

60,774

 

 

64,017

 

 

     Increase (decrease) in liabilities:

 

 

 

 

 

        Accounts payable

 

500,706

 

 

(819,926)

 

 

        Advances from customers-related parties

 

(1,194,866)

 

 

4,034,448

 

 

        Wages and benefits payable

 

(38,897)

 

 

(416,798)

 

 

        Other taxes payable

 

202,713

 

 

550,140

 

 

        Other payables

 

(11,159)

 

 

19,487

 

 

        Other payables-related parties

 

3,900,777

 

 

1,079,414

 

 

           Net cash provided by operating activities

 

6,206,094

 

 

13,029,773

 

 

 

 

 

 

 

CASH FLOWS FROM INVESTING ACTIVITIES:

 

 

 

 

 

  Investment in Life Resources

 

-

 

 

3,000,000

 

 

  Proceeds from disposal of a subsidiary

 

-

 

 

700,000

 

 

  Construction deposits

 

(7,783,013)

 

 

(562,642)

 

 

  Contractor deposits

 

(15,180)

 

 

-

 

 

  Addition to construction in progress

 

(2,729,380)

 

 

(9,112,590)

 

 

  Equipment deposits

 

(427,179)

 

 

(1,558,192)

 

 

  Proceeds from sales of properties

 

-

 

 

2,621,021

 

 

  Purchase of equipment and automobiles

 

(163,060)

 

 

(88,505)

 

 

           Net cash used in investing activities

 

(11,117,812)

 

 

(5,000,908)

 

 

 

 

 

 

 

CASH FLOWS FROM FINANCING ACTIVITIES:

 

 

 

 

 

  Proceed from short term debt

 

4,554,000

 

 

-

 

 

           Net cash provided by financing activities

 

4,554,000

 

 

-

 

 

 

 

 

 

 

EFFECT OF EXCHANGE RATE CHANGES ON CASH

 

(106,393)

 

 

(3,895)

 

 

 

 

 

 

 

NET INCREASE (DECREASE) IN CASH

 

(464,111)

 

 

8,024,970

 

 

 

 

 

 

 

CASH, beginning of period

 

10,155,522

 

 

1,848,328

 

 

 

 

 

 

 

 

 

 

 

 

CASH, end of period

 

$      9 ,691,411

 

 

$      9,873,298

 

 

 

 

 

 

 

Supplemental disclosures of cash flow information

 

 

 

 

 

  Cash paid during the period for:

 

 

 

 

 

     Interest

 

$          342,018

 

 

$                     -

 

 

     Income taxes

 

$          223,653

 

 

$         213,625

 

 

 

 

 

 

 

The accompanying notes are an integral part of this statement.

 

 

 

 

 

 



REVENUE BY REGION

 

 

 

 

 

 

 

 

Three months ended March 31,

 

 

 

2011

 

 

2010

 

 

 

 

 

 

 

China

 

$         8,218,691

 

 

$        6,783,273

 

 

International

 

4,831,534

 

 

4,620,090

 

 

Total

 

$       13,050,225

 

 

$      11,403,363

 

 

 

 

 

 


Source: Tiens Biotech Group (USA), Inc.
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