Tanke BioSciences Announces Third Quarter 2012 Revenue Increases
59% to $9.9 Million
NEW YORK and GUANGZHOU, China, Nov.
15, 2012 /PRNewswire/ -- Tanke BioSciences
Corporation (OTCQB: TNBI) announces financial results for the
three and nine months ended September
30, 2012.
For the third quarter ended September 30,
2012, the company generated revenue of $9,906,581, a 59 percent increase over revenue of
$6,247,833 for the third quarter of
2011. Tanke's third quarter 2012 operating income was
$2,182,489, an 81 percent increase
over operating income of $1,203,796
for same period last year. The company achieved third quarter
2012 net income of $968,632, or
$.07 per share, compared to a net
loss of ($1,445,871), or ($.11) per share, for the third quarter of
2011. The company recorded a non-cash amortization expense
related to a discount on notes and offering costs totaling
$899,312 and $1,798,624 for the third quarter of 2012 and
2011, respectively.
For the nine months ended September 30,
2012, the company generated revenue of $21,878,509, a 27 percent increase over revenue
of $17,179,146 for the first nine
months of 2011. Tanke's operating income for the nine months ended
September 30, 2012 was $4,168,346 compared to operating income of
$718,413 for the same period last
year. The first nine months of 2011 included a non-cash
expense related to the issuance of stock in the amount of
$2,490,098 for consulting fees
related to going public. Net income for the nine months ended
September 30, 2012 was $570,069, or $.04
per share, compared to a net loss of ($5,124,341), or ($.40) per share, for the same period last
year. The company recorded a non-cash amortization expense
related to a discount on notes and offering costs totaling
$2,678,388 and $4,555,214 for the nine months ended September 30, 2012 and 2011, respectively.
Mr. Guixiong Qiu, Chairman and CEO of Tanke, commented, "We
continue to generate very strong year-over-year revenue growth as a
result of increasing demand for our natural and safe feed
additives. In particular, third quarter sales of our organic
trace mineral additives increased 81 percent over the same period
last year. We have significantly enhanced our domestic sales and
marketing initiatives, and believe we are extremely well positioned
heading into 2013. We achieved record operating income and
cash flow, and we are pleased to report we had over $11 million of cash on hand, and shareholder
equity of $16.5 million, or
$1.24 per share, at the end of the
third quarter. Looking ahead, we are in the process of adding
a new state-of-the-art production facility, which we expect to come
online in mid-2013. This new facility will help support our
anticipated growth, both domestic and international."
About Tanke BioSciences Corporation
Founded in 1997,
Tanke BioSciences Corp. (http://tanke-bio.com/) is a leading
China-based agritech company
developing, manufacturing and marketing animal feed additives and
livestock nutritional products that address China's soaring demand for safe, reasonably
priced food. All Tanke products are free of genetically modified
organisms (GMOs), antibiotics, and are environment-friendly, making
them optimal for animal consumption. The company's operations are
based in Guangzhou, China with
offices in the United States. For
investor information, please go to
http://ir.stockpr.com/tankebio/overview.
Forward-Looking Statements
This press release and the statements of representatives of our
officers, directors, employees and representatives related thereto
contain or may contain forward-looking statements which are based
upon the current beliefs and expectations of our management. Such
statements contained in this release are based on management's
exercise of business judgment as well as assumptions made by and
information currently available to management. When used in this
document, the words "guidance," "projects," "may," "could,"
"would," "should," "believes," "expects," "anticipates,"
"estimates," "intends," "plans," "ultimately" and words of similar
import, are intended to identify any forward-looking statements.
The information contained in the forward looking statements is
inherently uncertain, and our actual results may differ materially
due to a number of factors, many of which are beyond our ability to
predict or control, including, among others: (i) changes in the
level of consumer spending or preferences or demand for our
products; (ii) pressures from competition; (iii) our ability to
hire and retain key personnel and our relationship with our
employees; (iv) the performance of our distributors and other key
vendors; (v) effectively carrying out and managing our growth
strategies; (vi) failure to maintain the value and image of our
brand and protect our intellectual property rights; (vii)
seasonality; (viii) costs of materials and labor; (ix) sales,
manufacturing, supply or distribution difficulties or disruptions;
(x) compliance with or changes in Chinese, U.S. or international
laws and regulations; (xi) costs as a result of operating as a
public company; (xii) material weaknesses in internal controls;
(xiii) interest rate and foreign currency risks; (xiv) our ability
to maintain our land use and drug manufacturing rights in
China; (xv) general economic and
industry conditions in China and
internationally, and other risks as more fully detailed in our
filings with the Securities and Exchange Commission ("SEC"). Our
filings with the SEC are available at www.sec.gov. You are urged to
consider these factors carefully in evaluating our forward-looking
statements and are cautioned not to place undue reliance on such
forward-looking statements which are qualified in their entirety by
this cautionary statement. The forward-looking statements speak
only as of the date on which they are made, and the company
undertakes no obligation to publicly update such forward-looking
statements to reflect subsequent events or circumstances unless as
required by applicable laws or regulations.
Investor Contact:
Gilbert Lee,
CFO
Tanke BioSciences
Corp.
glee@tanke-bio.com
(214)
906-0065
(tables follow)
TANKE BIOSCIENCES
CORPORATION
CONDENSED CONSOLIDATED BALANCE
SHEETS
(UNAUDITED)
|
|
|
|
|
|
|
|
|
September 30,
|
|
|
December
31,
|
|
|
|
2012
|
|
|
2011
|
|
|
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
|
Cash and
cash equivalents
|
|
$
|
11,043,457
|
|
|
$
|
7,700,156
|
|
Restricted
cash
|
|
|
538,641
|
|
|
|
706,802
|
|
Accounts
receivable, net
|
|
|
2,275,592
|
|
|
|
1,917,699
|
|
Inventories
|
|
|
1,637,952
|
|
|
|
1,187,895
|
|
Note
receivable-related parties, current portion
|
|
|
-
|
|
|
|
239,476
|
|
Loans to
customer and supplier
|
|
|
2,876,785
|
|
|
|
2,513,460
|
|
Other
receivables
|
|
|
197,861
|
|
|
|
53,936
|
|
Prepayments
|
|
|
3,245,281
|
|
|
|
3,633,674
|
|
Other
current assets
|
|
|
339,553
|
|
|
|
914,594
|
|
Deferred
tax assets
|
|
|
46,327
|
|
|
|
46,042
|
|
Total
current assets
|
|
|
22,201,449
|
|
|
|
18,913,734
|
|
|
|
|
|
|
|
|
|
|
Property,
plant and equipment, net
|
|
|
4,922,941
|
|
|
|
4,771,299
|
|
Construction in progress
|
|
|
320,848
|
|
|
|
35,878
|
|
Intangible
asset, net
|
|
|
1,274,936
|
|
|
|
838,089
|
|
Other
non-current assets
|
|
|
121,439
|
|
|
|
328,006
|
|
Total
assets
|
|
$
|
28,841,613
|
|
|
$
|
24,887,006
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND SHAREHOLDERS'
EQUITY
|
|
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
|
|
Accounts
payable
|
|
$
|
581,950
|
|
|
$
|
784,777
|
|
Other
payables and accrued liabilities
|
|
|
917,942
|
|
|
|
758,907
|
|
Income tax
payable
|
|
|
1,746,235
|
|
|
|
1,216,841
|
|
Convertible notes, net
|
|
|
6,569,182
|
|
|
|
-
|
|
Current
portion of long-term borrowing
|
|
|
1,343,553
|
|
|
|
785,456
|
|
Total
current liabilities
|
|
|
11,158,862
|
|
|
|
3,545,981
|
|
|
|
|
|
|
|
|
|
|
Convertible notes, net
|
|
|
-
|
|
|
|
4,488,881
|
|
Note
payable - related party
|
|
|
13,722
|
|
|
|
13,722
|
|
Advance
from government grant
|
|
|
187,193
|
|
|
|
355,754
|
|
Long-term
borrowing
|
|
|
948,391
|
|
|
|
628,365
|
|
Total
liabilities
|
|
|
12,308,168
|
|
|
|
9,032,703
|
|
|
|
|
|
|
|
|
|
|
Commitments and contingencies
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders' equity:
|
|
|
|
|
|
|
|
|
Common
stock, $0.001 par value, 50,000,000 shares authorized, 13,324,083
issued and outstanding as of September 30, 2012 and December 31,
2011
|
|
|
13,324
|
|
|
|
13,324
|
|
Additional
paid-in capital
|
|
|
12,220,181
|
|
|
|
12,220,181
|
|
Retained
earnings
|
|
|
3,266,051
|
|
|
|
2,695,983
|
|
Statutory
reserve
|
|
|
373,406
|
|
|
|
373,406
|
|
Accumulated other comprehensive income
|
|
|
660,483
|
|
|
|
551,409
|
|
Total
stockholders' equity
|
|
|
16,533,445
|
|
|
|
15,854,303
|
|
Total
liabilities and stockholders' equity
|
|
$
|
28,841,613
|
|
|
$
|
24,887,006
|
|
|
|
|
|
|
|
|
|
|
TANKE BIOSCIENCES
CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS AND COMPREHENSIVE INCOME
(LOSS)
(UNAUDITED)
|
|
Three
Months Ended
|
|
|
Nine
Months Ended
|
|
|
|
September 30,
|
|
|
September 30,
|
|
|
|
2012
|
|
|
2011
|
|
|
2012
|
|
|
2011
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
sales
|
|
$
|
9,906,581
|
|
|
$
|
6,247,833
|
|
|
$
|
21,878,509
|
|
|
$
|
17,179,146
|
|
Costs of
sales
|
|
|
(6,521,478)
|
|
|
|
(4,004,212)
|
|
|
|
(14,165,652)
|
|
|
|
(10,737,079)
|
|
Gross
profit
|
|
|
3,385,103
|
|
|
|
2,243,621
|
|
|
|
7,712,857
|
|
|
|
6,442,067
|
|
Selling
expenses
|
|
|
(611,880)
|
|
|
|
(486,231)
|
|
|
|
(1,706,112)
|
|
|
|
(1,690,287)
|
|
Administrative expenses
|
|
|
(574,092)
|
|
|
|
(545,100)
|
|
|
|
(1,795,328)
|
|
|
|
(3,870,005)
|
|
Other
operating expenses
|
|
|
-
|
|
|
|
(4,809)
|
|
|
|
-
|
|
|
|
(96,498)
|
|
Depreciation and amortization
|
|
|
(16,642)
|
|
|
|
(3,685)
|
|
|
|
(43,071)
|
|
|
|
(66,864)
|
|
Income from
operations
|
|
|
2,182,489
|
|
|
|
1,203,796
|
|
|
|
4,168,346
|
|
|
|
718,413
|
|
Other
income/expense
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
income
|
|
|
23,573
|
|
|
|
25,563
|
|
|
|
193,026
|
|
|
|
29,173
|
|
Interest
expense
|
|
|
(316,422)
|
|
|
|
(814,415)
|
|
|
|
(1,058,291)
|
|
|
|
(1,497,364)
|
|
Amortization of discount on notes
|
|
|
(698,495)
|
|
|
|
(1,396,990)
|
|
|
|
(2,080,301)
|
|
|
|
(3,538,030)
|
|
Registration rights agreement expense
|
|
|
-
|
|
|
|
(260,782)
|
|
|
|
-
|
|
|
|
(260,782)
|
|
Foreign
exchange losses, net
|
|
|
-
|
|
|
|
(17,846)
|
|
|
|
-
|
|
|
|
(70,246)
|
|
Income (loss)
before income taxes
|
|
|
1,191,145
|
|
|
|
(1,260,674)
|
|
|
|
1,222,780
|
|
|
|
(4,618,836)
|
|
Income tax
expense
|
|
|
(222,513)
|
|
|
|
(185,197)
|
|
|
|
(652,711)
|
|
|
|
(505,505)
|
|
Net income
(loss)
|
|
$
|
968,632
|
|
|
$
|
(1,445,871)
|
|
|
|
570,069
|
|
|
$
|
(5,124,341)
|
|
Other
comprehensive income, net of tax:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Effects of
foreign currency conversion
|
|
|
(101,883)
|
|
|
|
308,646
|
|
|
|
109,074
|
|
|
|
549,414
|
|
Comprehensive income
(loss)
|
|
$
|
866,749
|
|
|
$
|
(1,137,225)
|
|
|
|
679,143
|
|
|
$
|
(4,574,927)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
(loss) available to common shareholders per share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
0.07
|
|
|
$
|
(0.11)
|
|
|
|
0.04
|
|
|
$
|
(0.40)
|
|
Diluted
|
|
$
|
0.07
|
|
|
$
|
(0.11)
|
|
|
|
0.04
|
|
|
$
|
(0.40)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted
average shares outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
13,324,083
|
|
|
|
13,324,083
|
|
|
|
13,324,083
|
|
|
|
12,723,196
|
|
Diluted
|
|
|
13,324,083
|
|
|
|
13,324,083
|
|
|
|
13,324,083
|
|
|
|
12,941,132
|
|
SOURCE Tanke BioSciences Corporation