BEIJING, Aug. 6, 2013 /PRNewswire-FirstCall/ -- China
Biologic Products, Inc. (NASDAQ: CBPO, "China Biologic" or the
"Company"), a leading fully integrated plasma-based
biopharmaceutical company in China, today announced its unaudited financial
results for the second quarter of 2013.
Second Quarter 2013 Financial Highlights
- Total sales in the second quarter of 2013 increased by
6.2% to $53.6 million from
$50.5 million in the same quarter of
2012.
- Gross profit increased by 9.1% to $37.5 million from $34.3
million in the same quarter of 2012. Gross margin increased
to 69.9% in the second quarter of 2013 from 68.0% in the second
quarter of 2012.
- Income from operations increased by 18.8% to
$25.3 million from $21.3 million in the same quarter of 2012.
Operating margin increased to 47.2% in the second quarter of 2013
from 42.2% in the same quarter of 2012.
- Net income attributable to the Company increased by
25.9% to $16.2 million from
$12.8 million in the same quarter of
2012. Fully diluted net income per share was $0.57 in the second quarter of 2013 as compared
to $0.46 in the same quarter of
2012.
- Non-GAAP adjusted net income attributable to the Company
was $17.4 million, representing a
30.8% increase from $13.3 million in
the same quarter of 2012. Non-GAAP adjusted net income per
share was $0.62, compared to
$0.50 in the same quarter of
2012.
Mr. David (Xiaoying) Gao,
Chairman and Chief Executive Officer of China Biologic, commented,
"We were pleased with our second quarter improvement in the quality
of our business highlighted by steady sales growth, improved
margins and several operational accomplishments. In the past
quarter, market demand for our plasma-based products remained
strong, which led to increased human albumin product revenue. In
the first half of 2013, despite increased import levels in
China of foreign human albumin,
domestic pricing across our plasma portfolio remained largely
stable as the overall market continues to show steady signs of
growth, however we will continue to closely monitor market trends
related to albumin import volume, and will adjust our pricing and
product shipments accordingly. In the coming quarters, we aim to
preserve our margins through transitioning to a more profitable
product mix and implementing efficient cost control measures. We
were glad to achieve improved plasma utilization efficiency
following the launch of Factor VIII products. For the second
quarter, sales of Factor VIII contributed approximately 2% of total
sales and we expect its sales contribution to gradually increase in
the long run."
"During the second quarter, our new plasma station in Cao
County, Shandong Province
commenced plasma collection operations. Additionally, our Shandong
Taibang production facility obtained renewed GMP certification from
the China Food and Drug Administration ("CFDA") at the end of June,
ahead of schedule. Additionally, in Guizhou, we halted production at this facility
on June 1st as planned and
remain on track with the facility upgrade plan. We currently expect
to resume production at Guizhou Taibang in the first quarter of
2014."
Mr. Gao concluded, "The Company announced that it is has entered
into a redemption agreement with Ms. Lin
Ling Li, an individual shareholder of the Company and her
spouse, pursuant to which the Company agreed to redeem 1,479,704
shares of its common stock, representing approximately 5.49% of the
total common stock outstanding on August
2, 2013. The redemption price is $20.00 per share, and the redemption shares will
become treasure stock of the Company upon closing of the
redemption. We believe this share redemption will improve
China Biologic's shareholder structure, enhance shareholder value
and benefit other existing shareholders of the company. "
Second Quarter 2013 Financial Performance
Total sales in the second quarter of 2013 were
$53.6 million, an increase of 6.2%
from $50.5 million in the same
quarter of 2012. Excluding foreign currency influence, the increase
in sales was primarily attributable to a mix of price and volume
increases in certain plasma-based products. During the three months
ended June 30, 2013, the prices all
of the Company's approved products either increased or remained
stable. The price increase for the human albumin products was
primarily attributable to the increase of the retail price ceiling
announced by the NDRC in January
2013, which came into effect at the beginning of February,
enabling the Company to have more flexibility in pricing and to
raise ex-factory prices in certain regional markets. The average
price for human immunoglobulin for intravenous injection ("IVIG")
products remained stable as compared to the prior year period.
During the second quarter of 2013, human albumin products and
IVIG products remained the largest two sales contributors.
- As a percentage of total sales, human albumin product revenue
was 42.5% in the second quarter of 2013 as compared to 38.7% in the
same quarter of 2012. Sales volume of human albumin products
increased slightly by 3.9% in the reporting quarter, primarily due
to strong market demand.
- As a percentage of total sales, IVIG revenue was 39.4% in the
second quarter of 2013 as compared to 42.1% in the same quarter of
2012. Sales volume of IVIG products decreased by 1.6% in the
quarter, mainly due to the Company's decision to reduce sales in
order to smooth out the impact associated with the Guizhou Taibang
production suspension.
Cost of sales was $16.1
million in the second quarter of 2013, the same with that of
the second quarter of 2012. Cost of sales as a percentage of total
sales was 30.1%, as compared to 32.0% in the same quarter of
2012.
Gross profit increased by 9.1% to $37.5 million in the second quarter of 2013 from
$34.3 million in the same quarter of
2012. Gross margin was 69.9% and 68.0% for the three months
ended June 30, 2013 and 2012,
respectively. The improvement of our overall gross margin was
mainly due to the increased margin of human albumin products and
the improved plasma utilization efficiency following the launch of
Factor VIII products.
Total operating expenses in the second quarter of 2013
decreased by 6.8% to $12.1 million
from $13.0 million in the same
quarter of 2012. As a percentage of total sales, total operating
expenses decreased to 22.7% from 25.8% in the same quarter of
2012.
Selling expenses in the second quarter of 2013 decreased
by 41.4% to $2.4 million from
$4.2 million in the same quarter of
2012. As a percentage of total sales, selling expenses were 4.6%,
down from 8.3% in the same quarter of 2012. The decrease in selling
expenses as a percentage of sales was primarily due to the
Company's lower commission rate for certain products, which have
been implemented since the second half of 2012. The Company has
taken additional steps to further control selling expenses since
the second half of 2012. However, the Company carried out a series
of promotional activities and conferences for the newly-launched
product Factor VIII starting from the second quarter of 2013. As a
result, the Company expects selling expenses as a percentage of
sales to increase in the following quarters.
General and administrative expenses in the second quarter
of 2013 increased by 11.8% to $8.9
million from $7.9 million in
the same quarter of 2012. As a percentage of total sales, general
and administrative expenses were 16.5% and 15.7% in the second
quarter of 2013 and 2012, respectively. The increase in G&A
expenses was mainly due to higher payroll expenses and employee
benefits, an increase in share-based compensation and an increase
in legal expenses related to the corporate defense against the
proposed share acquisition by Shanghai RAAS Blood Products Co.,
Ltd., a public company listed on the Shenzhen Stock Exchange and a
direct competitor of the Company in China.
Research and development expenses in the second quarter
of 2013 were $835 thousand,
representing a decrease of 10.1% from $929
thousand in the same quarter of 2012. As a percentage of
total sales, research and development expenses for the three months
ended June 30, 2013 and 2012 were
1.6% and 1.8%, respectively.
Income from operations for the three months ended
June 30, 2013 was $25.3 million, an increase of 18.8% from
$21.3 million in the same period of
2012. Operating margin increased to 47.2% in the reporting quarter
from 42.2% in the same quarter of 2012.
Income tax expense in the second quarter of 2013 was
$3.7 million, as compared to
$3.3 million in the same quarter of
2012, representing an increase of 12.4%. The effective income tax
rates were 14.0% and 14.5% for the three months ended June 30, 2013 and 2012, respectively.
Net income attributable to the Company increased
by 25.9% to $16.2 million in the
second quarter of 2013, from $12.8
million in the same quarter of 2012. Net margins were 30.2%
and 25.4% for the three months ended June
30, 2013 and 2012, respectively. Fully diluted net income
per share was $0.57, as compared
to $0.46 in the second quarter of
2012.
Non-GAAP adjusted net income attributable to the Company
was $17.4 million or $0.62 per diluted share in the second quarter of
2013, compared to $13.3 million or
$0.50 per diluted share in the same
quarter of 2012.
Non-GAAP adjusted net income and diluted earnings per share for
the three months ended June 30, 2013
excluded $1.2 million of non-cash
employee share-based compensation expenses.
First Half 2013 Financial Performances
Total sales in the first half of 2013 were $107.6 million, an increase of 10.2% from
$97.7 million in the same period of
2012. The increase in sales was primarily attributable to a mix of
price and volume increases in certain plasma-based products.
As a percentage of total sales, sales from human albumin
products and IVIG products were 40.2% and 43.5%, respectively, for
the six months ended June 30,
2013.
Cost of sales increased slightly to $32.7 million in the first half of 2013, from
$31.8 million in the same period of
2012. Cost of sales as a percentage of total sales was 30.4%, as
compared to 32.6% in the same period of 2012.
Gross profit increased by 13.7% to $74.9 million in the first half of 2013 from
$65.8 million in the same period of
2012. Gross margin increased to 69.6% in the first half of
2013 from 67.4% in the same period of 2012. The improvement of the
Company's overall gross margin was mainly due to the improved gross
margin of human albumin products as a result of price increases and
the improved utilization efficiency of plasma following the launch
of Factor VIII products.
Total operating expenses in the first half of 2013
decreased by 8.3% to $23.6 million
from $25.7 million in the same period
of 2012. The decrease of total operating expenses was mainly due to
a significant decrease in the selling expenses, partially offset by
an increase in the general and administrative expenses. As a
percentage of total sales, total operating expenses decreased to
21.9% for the six months ended June 30,
2013, from 26.3% in the same period of 2012.
Income from operations for the six months ended
June 30, 2013 was $51.3 million, an increase of 27.8% from
$40.1 million in the same period of
2012.
Income tax expense in the first half of 2013 was
$8.4 million, as compared to
$6.5 million in the same period of
2012. The effective income tax rates were 15.7% and 14.9% for the
six months ended June 30, 2013 and
2012, respectively. The tax rate applicable to the Company's major
operating subsidiaries in the PRC for 2012 and 2013 is 15%.
Net income attributable to the Company increased
by 20.5% to $31.1 million for the six
months ended June 30, 2013, from
$25.8 million in the same period of
2012. Net margins were 28.9% and 26.4% for the six months ended
June 30, 2013 and 2012,
respectively.
Non-GAAP adjusted net income attributable to the Company
was $33.8 million or $1.21 per diluted share for the six months ended
June 30, 2013 compared with
$26.0 million or $0.98 per diluted share in the same period of
2012.
Non-GAAP adjusted net income and diluted earnings per share in
the six months ended June 30, 2013
excluded $2.7 million of non-cash
employee share-based compensation expenses.
As of June 30, 2013, the Company
had cash and cash equivalents of $147.3 million, compared to $129.6 million as of December 31, 2012.
Net cash provided by operating activities for the six
months ended June 30, 2013 was
$37.9 million, as compared to
$32.1 million for the same period of
2012.
Outlook
For the full year of 2013, the Company reiterates its full year
financial forecast of total sales in the range of $195 million to $205 million and full year
non-GAAP adjusted net income in the range of $50 million to $53 million. This guidance assumes
the production suspension at the Company's Guizhou facility, only organic growth and
excludes acquisitions and necessarily assumes no significant
adverse product price changes during 2013. Please note that the
Company's 2013 financial outlook may be subject to change depending
on market conditions and the GMP upgrade status at the Company's
Guizhou Taibang facility.
This forecast reflects the Company's current and preliminary
views, which are subject to change.
Conference Call
The Company will host a conference call at 7:30 am, Eastern Time on Wednesday, August 7, 2013, which is 7:30 pm, Beijing Time on August 7, 2013, to discuss second quarter 2013
results and answer questions from investors. Listeners may access
the call by dialing 1-480-629-9664.
A live and archived webcast of the conference call will be
available through the Company's investor relations website at
http://chinabiologic.investorroom.com.
A replay of the call will be available through August 21, 2013 by dialing 1-858-384-5517, access
code: 4633951.
About China Biologic Products, Inc.
China Biologic Products, Inc. (Nasdaq: CBPO), is a leading fully
integrated plasma-based biopharmaceutical company in China. The Company's products are used as
critical therapies during medical emergencies and for the
prevention and treatment of life-threatening diseases and
immune-deficiency related diseases. China Biologic is headquartered
in Beijing and manufactures over
20 plasma-based products through its indirect majority-owned
subsidiaries, Shandong Taibang Biological Products Co., Ltd. and
Guiyang Dalin Biologic Technologies Co., Ltd. The Company also has
an equity investment in Xi'an Huitian Blood Products Co., Ltd. The
Company sells its products to hospitals and other healthcare
facilities in China. For
additional information, please see the Company's website
www.chinabiologic.com.
Non-GAAP Disclosure
This news release contains non-GAAP financial measures that
exclude non-cash compensation expenses related to options and
restricted shares granted to employees and directors under the
Company's 2008 Equity Incentive Plan and changes in the fair value
of warrants. To supplement the Company's unaudited condensed
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. 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. A reconciliation of the adjustments to GAAP
results appears in the table accompanying this news release. This
additional non-GAAP information is not meant to be considered in
isolation or as a substitute for GAAP financials. The non-GAAP
financial information that the Company provides also may differ
from the non-GAAP information provided by other companies.
Safe Harbor Statement
This news release may contain certain "forward-looking
statements" relating to the business of China Biologic Products,
Inc. and its subsidiaries. All statements, other than statements of
historical fact included herein, are "forward-looking statements."
These forward-looking statements are often identified by the use of
forward-looking terminology such as "believes," "expects," or
similar expressions, and involve known and unknown risks and
uncertainties. Although the Company believes that the expectations
reflected in these forward-looking statements are reasonable, they
involve assumptions, risks, and uncertainties, and these
expectations may prove to be incorrect.
Investors should not place undue reliance on these
forward-looking statements, which speak only as of the date of this
news release. The Company's actual results could differ materially
from those anticipated in these forward-looking statements as a
result of a variety of factors, including its potential inability
to achieve the expected operating and financial performance in
2013, potential inability to find alternative sources of plasma,
potential inability to increase production at permitted sites,
potential inability to mitigate the financial consequences of a
temporarily reduced raw plasma supply through cost cutting or other
efficiencies, and potential additional regulatory restrictions on
its operations and those additional risks and uncertainties
discussed in the Company's periodic reports that are filed with the
Securities and Exchange Commission and available on its website
(http://www.sec.gov). All forward-looking statements attributable
to the Company or persons acting on its behalf are expressly
qualified in their entirety by these factors. Other than as
required under the securities laws, the Company does not assume a
duty to update these forward-looking statements.
Contact:
China Biologic Products, Inc.
Mr. Ming Yin
Vice President
Phone: +86-10-6598-3099
Email: ir@chinabiologic.com
ICR Inc.
Mr. Bill Zima
Phone: +86-10-6583-7511 or +1-646-405-5191
E-mail: bill.zima@icrinc.com
CHINA BIOLOGIC
PRODUCTS, INC. AND SUBSIDIARIES
|
UNAUDITED CONDENSED CONSOLIDATED
STATEMENTS OF COMPREHENSIVE INCOME
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the three months
ended
|
|
For the six months
ended
|
|
|
June 30,
|
|
June 30,
|
|
June 30,
|
|
June 30,
|
|
|
2013
|
|
2012
|
|
2013
|
|
2012
|
Sales
|
|
$
|
53,580,523
|
|
$
|
50,466,339
|
|
$
|
107,612,255
|
|
$
|
97,693,800
|
Cost of
sales
|
|
|
16,122,262
|
|
|
16,130,889
|
|
|
32,739,020
|
|
|
31,846,616
|
Gross
profit
|
|
|
37,458,261
|
|
|
34,335,450
|
|
|
74,873,235
|
|
|
65,847,184
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling
expenses
|
|
|
2,441,727
|
|
|
4,165,242
|
|
|
4,278,120
|
|
|
8,991,349
|
General and administrative expenses
|
|
|
8,866,071
|
|
|
7,932,372
|
|
|
17,553,168
|
|
|
15,078,166
|
Research and development expenses
|
|
|
835,150
|
|
|
929,489
|
|
|
1,748,242
|
|
|
1,640,077
|
Income from
operations
|
|
|
25,315,313
|
|
|
21,308,347
|
|
|
51,293,705
|
|
|
40,137,592
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income
/(expenses)
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity in income of an equity method investee
|
|
|
610,997
|
|
|
451,891
|
|
|
739,945
|
|
|
1,474,303
|
Change in fair value of derivative liabilities
|
|
|
-
|
|
|
559,758
|
|
|
-
|
|
|
1,769,140
|
Interest expense
|
|
|
(198,739)
|
|
|
(157,635)
|
|
|
(434,913)
|
|
|
(766,198)
|
Interest income
|
|
|
995,757
|
|
|
765,717
|
|
|
1,643,819
|
|
|
1,309,112
|
Other expenses, net
|
|
|
-
|
|
|
(1,797)
|
|
|
-
|
|
|
(102,786)
|
Total other income,
net
|
|
|
1,408,015
|
|
|
1,617,934
|
|
|
1,948,851
|
|
|
3,683,571
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings before
income tax expense
|
|
|
26,723,328
|
|
|
22,926,281
|
|
|
53,242,556
|
|
|
43,821,163
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax
expense
|
|
|
3,745,649
|
|
|
3,333,616
|
|
|
8,352,551
|
|
|
6,510,331
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
income
|
|
|
22,977,679
|
|
|
19,592,665
|
|
|
44,890,005
|
|
|
37,310,832
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less: Net income
attributable to noncontrolling interest
|
|
|
6,815,753
|
|
|
6,753,894
|
|
|
13,812,219
|
|
|
11,514,755
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
attributable to China Biologic Products, Inc.
|
|
$
|
16,161,926
|
|
$
|
12,838,771
|
|
$
|
31,077,786
|
|
$
|
25,796,077
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income per share
of common stock:
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
0.60
|
|
$
|
0.50
|
|
$
|
1.15
|
|
$
|
1.00
|
Diluted
|
|
$
|
0.57
|
|
$
|
0.46
|
|
$
|
1.11
|
|
$
|
0.90
|
Weighted average
shares used in computation:
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
26,880,459
|
|
|
25,875,164
|
|
|
26,833,262
|
|
|
25,738,145
|
Diluted
|
|
|
28,067,303
|
|
|
26,627,160
|
|
|
27,967,080
|
|
|
26,581,824
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
income
|
|
$
|
22,977,679
|
|
$
|
19,592,665
|
|
$
|
44,890,005
|
|
$
|
37,310,832
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other comprehensive
income :
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign currency
translation adjustment, net of nil income taxes
|
|
|
4,428,715
|
|
|
136,178
|
|
|
5,825,256
|
|
|
1,313,135
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Comprehensive
income
|
|
|
27,406,394
|
|
|
19,728,843
|
|
|
50,715,261
|
|
|
38,623,967
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less: Comprehensive
income attributable to noncontrolling interest
|
|
|
7,723,790
|
|
|
6,750,933
|
|
|
14,882,947
|
|
|
11,766,768
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Comprehensive income
attributable to China Biologic Products, Inc.
|
|
$
|
19,682,604
|
|
$
|
12,977,910
|
|
$
|
35,832,314
|
|
$
|
26,857,199
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CHINA BIOLOGIC
PRODUCTS, INC. AND SUBSIDIARIES
|
UNAUDITED CONDENSED CONSOLIDATED BALANCE
SHEETS
|
|
|
|
|
|
|
|
|
|
June 30,
|
|
December
31,
|
|
|
2013
|
|
2012
|
ASSETS
|
|
|
|
|
|
|
Current
Assets
|
|
|
|
|
|
|
Cash and
cash equivalents
|
|
$
|
147,264,448
|
|
$
|
129,609,317
|
Accounts
receivable, net of allowance for doubtful accounts
|
|
|
17,821,673
|
|
|
11,206,244
|
Inventories
|
|
|
80,907,813
|
|
|
75,679,173
|
Prepayments and other current
assets
|
|
|
5,503,155
|
|
|
5,664,919
|
Total Current Assets
|
|
|
251,497,089
|
|
|
222,159,653
|
|
|
|
|
|
|
|
Property, plant and
equipment, net
|
|
|
62,337,422
|
|
|
51,325,177
|
Intangible assets,
net
|
|
|
3,104,210
|
|
|
3,541,582
|
Land use rights,
net
|
|
|
6,373,176
|
|
|
5,818,709
|
Deposits related to
land use rights
|
|
|
16,669,167
|
|
|
14,752,574
|
Restricted
cash
|
|
|
2,786,502
|
|
|
2,912,145
|
Equity method
investment
|
|
|
10,937,307
|
|
|
10,537,310
|
Total Assets
|
|
$
|
353,704,873
|
|
$
|
311,047,150
|
|
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
|
|
Short-term bank loans
|
|
$
|
4,860,000
|
|
$
|
7,935,000
|
Accounts
payable
|
|
|
3,018,095
|
|
|
2,908,624
|
Due to
related parties
|
|
|
4,055,925
|
|
|
4,081,624
|
Other
payables and accrued expenses
|
|
|
25,895,823
|
|
|
25,423,349
|
Advance
from customers
|
|
|
2,381,166
|
|
|
2,857,420
|
Income
tax payable
|
|
|
3,333,141
|
|
|
4,513,075
|
Total Current Liabilities
|
|
|
43,544,150
|
|
|
47,719,092
|
|
|
|
|
|
|
|
Deferred
income
|
|
|
2,972,700
|
|
|
2,912,145
|
Other
liabilities
|
|
|
3,410,801
|
|
|
2,996,749
|
Total Liabilities
|
|
$
|
49,927,651
|
|
$
|
53,627,986
|
|
|
|
|
|
|
|
Stockholders'
Equity
|
|
|
|
|
|
|
Common stock: par value $0.0001;
100,000,000 shares authorized; 26,952,945 and 26,629,615 shares
issued and outstanding at June 30, 2013 and December 31, 2012,
respectively
|
|
$
|
2,695
|
|
$
|
2,663
|
Additional paid-in capital
|
|
|
67,303,915
|
|
|
62,251,731
|
Retained
earnings
|
|
|
150,220,786
|
|
|
119,143,000
|
Accumulated other comprehensive income
|
|
|
18,826,850
|
|
|
14,072,322
|
Total
equity attributable to China Biologic Products, Inc.
|
|
|
236,354,246
|
|
|
195,469,716
|
|
|
|
|
|
|
|
Noncontrolling interest
|
|
|
67,422,976
|
|
|
61,949,448
|
|
|
|
|
|
|
|
Total Stockholders' Equity
|
|
|
303,777,222
|
|
|
257,419,164
|
|
|
|
|
|
|
|
Commitments and contingencies
|
|
|
-
|
|
|
-
|
|
|
|
|
|
|
|
Total Liabilities and Stockholders' Equity
|
|
$
|
353,704,873
|
|
$
|
311,047,150
|
|
|
|
|
|
|
|
CHINA BIOLOGIC
PRODUCTS, INC. AND SUBSIDIARIES
|
UNAUDITED
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
|
|
|
|
|
|
|
|
For the six months
ended
|
|
June 30,
|
|
June 30,
|
|
2013
|
|
2012
|
CASH FLOWS FROM
OPERATING ACTIVITIES:
|
|
|
|
|
|
Net
income
|
$
|
44,890,005
|
|
$
|
37,310,832
|
Adjustments to reconcile net income to net cash provided by
operating activities:
|
|
|
|
|
|
Depreciation
|
|
3,105,739
|
|
|
2,281,223
|
Amortization
|
|
702,556
|
|
|
1,525,267
|
(Gain)/loss on sale of property, plant and equipment
|
|
(70,363)
|
|
|
60,518
|
Allowance for doubtful accounts, net
|
|
-
|
|
|
21,895
|
Provision for doubtful accounts - other receivables and
prepayments
|
|
6,202
|
|
|
35,637
|
Write-down of obsolete inventories
|
|
-
|
|
|
49,703
|
Deferred tax expense
|
|
720,679
|
|
|
26,341
|
Share-based compensation
|
|
3,047,962
|
|
|
1,992,958
|
Change in fair value of derivative liabilities
|
|
-
|
|
|
(1,769,140)
|
Equity in income of an equity method investee
|
|
(739,945)
|
|
|
(1,474,303)
|
Change in
operating assets and liabilities:
|
|
|
|
|
|
Accounts receivable
|
|
(6,314,643)
|
|
|
(4,692,006)
|
Prepayment and other current assets
|
|
(101,135)
|
|
|
(292,473)
|
Inventories
|
|
(3,616,165)
|
|
|
2,045,191
|
Accounts payable
|
|
242,365
|
|
|
(1,546,373)
|
Other payables and accrued expenses
|
|
(2,033,594)
|
|
|
(2,977,473)
|
Advance from customers
|
|
(529,984)
|
|
|
401,393
|
Due to related parties
|
|
(140,697)
|
|
|
1,255,867
|
Income tax payable
|
|
(1,260,254)
|
|
|
(2,185,825)
|
Net cash provided
by operating activities
|
$
|
37,908,728
|
|
$
|
32,069,232
|
|
|
|
|
|
|
CASH FLOWS FROM
INVESTING ACTIVITIES:
|
|
|
|
|
|
Payment for
property, plant and equipment
|
|
(11,912,603)
|
|
|
(5,098,533)
|
Payment for
intangible assets and land use rights
|
|
(1,137,556)
|
|
|
(796,707)
|
Dividend
received
|
|
560,980
|
|
|
555,310
|
Purchase of
short-term investment
|
|
-
|
|
|
(1,348,610)
|
Proceeds from
sale of property, plant and equipment
|
|
83,731
|
|
|
-
|
Net cash used in
investing activities
|
$
|
(12,405,448)
|
|
$
|
(6,688,540)
|
|
|
|
|
|
|
|
|
|
|
|
|
CASH FLOWS FROM
FINANCING ACTIVITIES:
|
|
|
|
|
|
Proceeds from stock
option exercised
|
$
|
2,668,916
|
|
$
|
-
|
Proceeds from warrants
exercised
|
|
-
|
|
|
4,500,000
|
Proceeds from
short-term bank loans
|
|
4,808,400
|
|
|
-
|
Repayment of short
term bank loans
|
|
(8,014,000)
|
|
|
(11,106,200)
|
Acquisition of
noncontrolling interest
|
|
(1,963,913)
|
|
|
-
|
Dividends paid by
subsidiaries to noncontrolling interest shareholders
|
|
(8,110,168)
|
|
|
(4,379,016)
|
Net cash used in
financing activities
|
$
|
(10,610,765)
|
|
$
|
(10,985,216)
|
|
|
|
|
|
|
EFFECT OF FOREIGN
EXCHANGE RATE CHANGES ON CASH
|
|
2,762,616
|
|
|
679,914
|
|
|
|
|
|
|
NET INCREASE IN
CASH
|
$
|
17,655,131
|
|
$
|
15,075,390
|
|
|
|
|
|
|
Cash and cash
equivalents at beginning of period
|
|
129,609,317
|
|
|
89,411,835
|
|
|
|
|
|
|
Cash and cash
equivalents at end of period
|
$
|
147,264,448
|
|
$
|
104,487,225
|
|
|
|
|
|
|
Supplemental cash
flow information
|
|
|
|
|
|
Cash paid for income
taxes
|
$
|
8,892,126
|
|
$
|
8,669,815
|
Cash paid for interest
expense
|
$
|
198,900
|
|
$
|
204,982
|
Noncash investing and
financing activities:
|
|
|
|
|
|
Acquisition of property, plant and equipment included in
payables
|
$
|
1,554,828
|
|
$
|
347,439
|
Exercise
of warrants that were liability classified
|
|
-
|
|
|
3,641,279
|
RECONCILIATION OF
NON-GAAP FINANCIAL MEASURES
|
FOR THE THREE AND
SIX MONTHS ENDED JUNE 30, 2013 and 2012
|
|
|
|
|
|
|
|
For the three months
ended
|
|
June 30,
|
|
June 30,
|
|
2013
|
|
2012
|
Adjusted Net Income
Attributable to the Company - Non GAAP
|
$
|
17,406,925
|
|
$
|
13,309,552
|
Diluted EPS - Non
GAAP
|
$
|
0.62
|
|
$
|
0.50
|
Non-cash employee
stock compensation
|
$
|
(1,244,999)
|
|
$
|
(1,030,539)
|
Gain from change in
fair value of warrants
|
$
|
-
|
|
$
|
559,758
|
Net Income
Attributable to the Company
|
$
|
16,161,926
|
|
$
|
12,838,771
|
Weighted average
number of shares used in computation of Non GAAP diluted
EPS
|
|
28,067,303
|
|
|
26,627,160
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the six months
ended
|
|
June 30,
|
|
June 30,
|
|
2013
|
|
2012
|
Adjusted Net Income
Attributable to the Company - Non GAAP
|
$
|
33,801,545
|
|
$
|
26,019,895
|
Diluted EPS - Non
GAAP
|
$
|
1.21
|
|
$
|
0.98
|
Non-cash employee
stock compensation
|
$
|
(2,723,759)
|
|
$
|
(1,992,958)
|
Gain from change in
fair value of warrants
|
$
|
-
|
|
$
|
1,769,140
|
Net Income
Attributable to the Company
|
$
|
31,077,786
|
|
$
|
25,796,077
|
Weighted average
number of shares used in computation of Non GAAP diluted
EPS
|
|
27,967,080
|
|
|
26,581,824
|
SOURCE China Biologic Products, Inc.