BEIJING, Aug. 23, 2016 /PRNewswire/ -- Sinovac Biotech
Ltd. (NASDAQ: SVA), a leading provider of biopharmaceutical
products in China, announced today
its unaudited second quarter ended June 30,
2016.
Mr. Weidong Yin, Chairman,
President and CEO of the Sinovac, commented, "As forecasted on our
first quarter earnings call, we experienced a continued decline to
our financial results in the second quarter due to the incident
involving the improper distribution and sale of vaccines in
Shandong province. This impacted
nationwide sales of private-pay market vaccines as vaccine
companies halted vaccine delivery to wait for the interpretation of
new regulation by the Chinese government."
"In mid-June, the China Food and Drug Administration ("CFDA")
and China's Ministry of Health
jointly issued an interpretation of the new requirement and
execution plan during the transition period before the
infrastructure is set up to fully comply with the new regulation.
This allowed vaccine sales and delivery in the private-pay market
to resume following the joint government announcement. Since then,
we have experienced a rebound in sales activity. When the
private-pay vaccine market was
reactivated, our sales and marketing team launched marketing
activities for promoting our newly approved EV71 vaccines. There
have been vaccination kick-off ceremonies, commercial launch
activities at the provincial level, as well as educational seminars
and marketing activities, as planned. By now, we have delivered our
EV71 vaccine to 16 provinces
and three municipalities and we expect these numbers to keep
increasing."
Mr. Yin also commended, "During the second quarter, we also made
progress on our pipeline programs with the continuation of clinical
trials of our varicella vaccine and completed preparation for the
trials of our sIPV vaccine. We expect that sales in our fiscal
second half of the year will be much stronger than the first half
and look forward to updating our investors on our latest progress
and achievements in the months ahead."
Second Quarter 2016 Business Highlights
Marketing and Sales
EV71 - Sinovac's EV71 was approved for commercialization early
this year. After private pay market vaccine sales resumed, sales
and marketing of EV71 vaccine was initiated immediately and
Sinovac's Public Tender market: Sinovac won the tender of supplying
Healive to Beijing over the course
of 2016 to 2018. The total value of the tender is RMB 32 million ($4.8
million). Sinovac was selected to be the sole supplier of
Healive to Shanghai for 2016 and
the value of the contract is RMB 3.2
million ($0.5 million).
Research and Development
Varicella – The vaccine candidate was approved to commence human
clinical trials in 2015. The phase I clinical trial was initiated
in May 2016 in Henan Province. The phase I trial is designed
as a single-center, randomized, double-blinded, and placebo
controlled study. 270 subjects were enrolled. The preliminary
results show the vaccine has a good safety profile. We expect to
initiate the phase III trial in September
2016.
sIPV - The clinical trial license was received in December 2015. Sinovac has obtained the clinical
site approval and ethics committee approval for conducting the
trial. Preparation for the trial is now complete and we expect to
conduct clinical trial phase I in the beginning of September 2016.
Unaudited Financial Results for Second
Quarter 2016
|
|
2016Q2
|
% of
Sales
|
2015Q2
|
% of
Sales
|
(In $000 except
percentage data)
|
|
|
|
|
|
Hepatitis A –
Healive
|
|
877
|
63.7%
|
8,462
|
45.8%
|
Hepatitis A&B –
Bilive
|
|
(1,359)
|
(98.7)%
|
9,216
|
49.8%
|
Hepatitis vaccines
subtotal
|
|
(482)
|
(35.0)%
|
17,678
|
95.6%
|
Influenza
vaccine
|
|
248
|
18.0%
|
526
|
2.8%
|
Enterovirus 71
vaccine
|
|
1,562
|
113.4%
|
-
|
-
|
Mumps
vaccine
|
|
49
|
3.6%
|
287
|
1.6%
|
Regular
sales
|
|
1,377
|
100.0%
|
18,491
|
100.0%
|
H5N1
|
|
-
|
-
|
-
|
-
|
Total
sales
|
|
1,377
|
100.0%
|
18,491
|
100.0%
|
Cost of sales
|
|
3,737
|
271.4%
|
3,283
|
17.8%
|
Gross profit
|
|
(2,360)
|
(171.4)%
|
15,208
|
82.2%
|
Quarterly sales from continuing operations were $1.4 million compared to $18.5 million in the prior year period. The sales
decrease was due to lower sales to Centers for Disease Control and
Prevention ("CDCs") and no sales to distributors combined with an
increase in sales returns as a result of the vaccine incident in
Shandong province.
Gross loss from continuing operations was $2.4 million, compared to gross profit of
$15.2 million in the prior year
period.
Selling, general and administrative expenses in the second
quarter of 2016 were $8.3 million,
compared to $9.0 million in the same
period of 2015. Generally, the Company's selling, general and
administrative expenses declined with the lower level of sales
activity, but there were other significant factors that offset this
trend, including a cost of $786
thousand relating to the proposed privatization of Sinovac;
and a recorded expense of $526
thousand resulting from the depreciation of the RMB against
the United States
dollar.
R&D expenses in the second quarter of 2016 were $2.8 million, compared to $2.2 million in the same period of 2015. The
increase was mainly due to higher R&D expenses on the MMR
vaccine project in the second quarter of 2016.
Loss from continuing operations was $12.6
million compared to an income of $3.7
million in the prior year period. The second quarter of 2015
includes a loss from discontinued operations of $244 thousand whereas no such income or loss was
received in the second quarter of 2016.
Net loss attributable to common shareholders was $9.6 million, or ($0.17) per basic and diluted share, compared to
net income attributable to common shareholders of $2.3 million, or $0.04 per basic and diluted share in the prior
year period.
Non-GAAP EBITDA was negative $12.0
million in the second quarter of 2016, compared to
$6.3 million in the prior year
period. Non-GAAP net loss from continuing operations in the second
quarter of 2016 was $11.7 million,
compared to net income of $3.9
million in the prior year period. Non-GAAP diluted net loss
per share from continuing operations in the second quarter of 2016
was $0.15, compared to net income of
$0.05 per share in the prior year
period. Reconciliations of non-GAAP measures to the nearest
comparable GAAP measures are included at the end of this earnings
announcement.
Unaudited Financial Results for First Half of
2016
|
|
2016H1
|
% of
Sales
|
2015H1
|
% of
Sales
|
(In $000 except
percentage data)
|
Hepatitis A –
Healive
|
|
4,524
|
36.7%
|
11,385
|
41.1%
|
Hepatitis A&B –
Bilive
|
|
(1,143)
|
(9.3)%
|
14,271
|
51.5%
|
Hepatitis vaccines
subtotal
|
|
3,381
|
27.4%
|
25,656
|
92.6%
|
Influenza
vaccine
|
|
710
|
5.8%
|
1,112
|
4.0%
|
Enterovirus 71
vaccine
|
|
1,562
|
12.7%
|
-
|
-
|
Mumps
vaccine
|
|
286
|
2.3%
|
930
|
3.4%
|
Regular
sales
|
|
5,939
|
48.2%
|
27,698
|
100.0%
|
H5N1
|
|
6,392
|
51.8%
|
-
|
-
|
Total
sales
|
|
12,331
|
100.0%
|
27,698
|
100.0%
|
Cost of
sales
|
|
8,363
|
67.8%
|
5,591
|
20.2%
|
Gross
profit
|
|
3,968
|
32.2%
|
22,107
|
79.8%
|
Sales from continuing operations were $12.3 million in the first half of 2016, a
decrease of 55.5% from $27.7 million
in the prior year period. Excluding H5N1 revenue, sales from
continuing operations were $5.9
million in the first half of 2016, a decrease of 78.6% from
$27.7 million in the prior year
period.The sales decrease was due to lower sales to customers and
additional sales return provision provided as a result of the
vaccine incident in Shandong
province.
Gross profit from continuing operations was $4.0 million, a decrease of 82.1% from
$22.1 million in the prior year
period. Gross margin was 32.2%, compared to 79.8% in the prior year
period. Excluding H5N1, the first half year gross margin was 3.7%,
compared to 80.4% in the prior year period. The decrease was mainly
due to higher inventory provision provided for hepatitis A&B
and mumps vaccines, higher idle capacity costs charged to cost of
sales, and a negative gross profit for the hepatitis A&B
vaccine due to higher sales returns provision provided in the first
half of 2016.
Selling, general and administrative expenses in the first half
of 2016 were $14.5 million, compared
to $15.8 million in the same period
of 2015. The Company's selling, general and administrative expenses
declined with the lower level of sales activity, but there were
other significant factors that offset this trend including a cost
of $856 thousand relating to the
proposed privatization of Sinovac and a recorded expense of
$403 thousand resulting from the
depreciation of the RMB against the
United States dollar.
R&D expenses in the first half of 2016 were $4.9 million, compared to $4.4 million in the same period of 2015.
Net loss from continuing operations was $14.2 million, compared to a net income of
$1.0 million in the prior year
period. Net income from discontinued operations was $2.3 million, compared to a net loss of
$436 thousand in the prior year
period.
Net loss attributable to common shareholders was $8.3 million or ($0.14) per basic and diluted share in the first
half of 2016, compared to net income attributable to common
shareholders of $20 thousand, or
$0.00 per basic and diluted share, in
the first half year of 2015.
Non-GAAP EBITDA was negative $11.9
million loss in the first half of 2016, compared to
$6.0 million in the prior year
period. Non-GAAP net loss from continuing operations in the first
half of 2016 was $13.1 million,
compared to a net income of $1.3
million in the prior year period. Non-GAAP diluted net loss
per share from continuing operations in the first half of 2016 was
$0.17, compared to net income of
$0.01 per share in the prior year
period. Reconciliations of Non-GAAP measures to the nearest
comparable GAAP measures are included at the end of this earnings
announcement.
As of June 30, 2016, cash and cash
equivalents totaled $49.2 million,
compared to $63.8 million as of
December 31, 2015. In the first half
of 2016, net cash used in operating activities was $15.6 million. Net cash used in investing
activities was $3.7 million, which
was for the purchase of equipment. Net cash provided by financing
activities was $5.7 million,
including loan proceeds of $22.7
million and loan repayment of $17.8
million. As of June 30, 2016,
the Company had $23.8 million of bank
loans due within one year. The Company expects that its current
cash position will be able to support its operations for the next
12 months. The Company will seek new commercial bank loans to
finance the commercialization of its pipeline products and for
other operational purposes when appropriate.
Conference Call Details
Sinovac will host a conference call on Tuesday, August 23, 2016, at 8:00 a.m. EDT (Tuesday,
August 23, 2016 at 8:00 p.m.
China Standard Time) to review the Company's financial results and
provide an update on recent corporate developments.
To access the conference call, please dial 1-877-407-9039
(USA) or 1-201-689-8470
(International). A replay of the call will be available after the
earnings call through September 6,
2016. To access the replay, please dial 1-877-870-5176
(USA) or 1-858-384-5517
(International) and reference the replay pin number 13643261.
About Sinovac
Sinovac Biotech Ltd. is a China-based biopharmaceutical company that
focuses on the research, development, manufacturing, and
commercialization of vaccines that protect against human infectious
diseases. Sinovac's product portfolio includes vaccines against
hepatitis A and B, seasonal influenza, H5N1 pandemic influenza
(avian flu), H1N1 influenza (swine flu), mumps and canine rabies.
In 2009, Sinovac was the first company worldwide to receive
approval for its H1N1 influenza vaccine, which it has supplied to
the Chinese Government's vaccination campaign and stockpiling
program. The Company is also the only supplier of the H5N1 pandemic
influenza vaccine to the government stockpiling program. Sinovac's
newly developed innovative vaccine against HFMD caused by EV71 is
ready for market launch. The Company is currently developing a
number of new products including a Sabin-strain inactivated polio
vaccine, pneumococcal polysaccharides vaccine, pneumococcal
conjugate vaccine and varicella vaccine. Sinovac primarily sells
its vaccines in China, while also
exploring growth opportunities in international markets. The
Company has exported select vaccines to Mexico, Mongolia, Nepal, Tajikistan, Bangladesh, Chile and the
Philippines, and was recently granted a license to
commercialize its influenza vaccine in Guatemala. For more information, please visit
the Company's website at www.sinovac.com.
Safe Harbor Statement
This press release contains "forward-looking statements" within
the meaning of the Private Securities Litigation Reform Act of
1995. Such statements involve known and unknown risks,
uncertainties and other factors that may cause our actual results,
levels of activity, performance or achievements to differ
materially from any future results, levels of activity, performance
or achievements expressed or implied by these forward looking
statements. Factors that might cause such a difference include our
inability to compete successfully in the competitive and rapidly
changing marketplace in which we operate, failure to retain key
employees, cancellation or delay of projects and adverse general
economic conditions in the United
States and internationally. These risks and other factors
include those listed under "Risk Factors" and elsewhere in our
Annual Report on Form 20-F as filed with the Securities and
Exchange Commission. In some cases, you can identify
forward-looking statements by terminology such as "may," "will,"
"should," "expects," "intends," "plans," "anticipates," "believes,"
"estimates," "predicts," "potential," "continue," or the negative
of these terms or other comparable terminology. Although we believe
that the expectations reflected in the forward-looking statements
are reasonable, we cannot guarantee future results, levels of
activity, performance or achievements. The Company assumes no
obligation to update the forward-looking information contained in
this release.
Non-GAAP Financial Measures
To supplement its consolidated financial statements, which are
prepared and presented in accordance with GAAP, Sinovac uses the
following non-GAAP financial measures: non-GAAP EBITDA, non-GAAP
net income from continuing operations and non-GAAP diluted EPS from
continuing operations. For more information on these non-GAAP
financial measures, please refer to the table captioned
"Reconciliations of non-GAAP Measures to the Nearest Comparable
GAAP Measures" in this results announcement.
Sinovac believes that non-GAAP EBITDA, non-GAAP net income from
continuing operations and non-GAAP diluted EPS from continuing
operations help identify underlying trends in its business that
could otherwise be distorted by the effect of certain income or
expenses that Sinovac includes in income from operations from
continuing operations, net income from continuing operations and
diluted EPS from continuing operations. Sinovac believes that
non-GAAP EBITDA, non-GAAP net income from continuing operations and
non-GAAP diluted EPS from continuing operations provide useful
information about its core operating results, enhance the overall
understanding of its past performance and future prospects and
allow for greater visibility with respect to key metrics used by
our management in its financial and operational
decision-making. Non-GAAP EBITDA, non-GAAP net income from
continuing operations and non-GAAP diluted EPS from continuing
operations should not be considered in isolation or construed as an
alternative to income from operations from continuing operations,
net income from continuing operations, diluted EPS from continuing
operations, or any other measure of performance or as an indicator
of Sinovac's operating performance. These non-GAAP financial
measures presented here may not be comparable to similarly titled
measures presented by other companies. Other companies may
calculate similarly titled measures differently, limiting their
usefulness as comparative measures to our data.
Non-GAAP EBITDA represents income (loss) from
continuing operations, excludes interest and financing expenses,
interest income, net other income (expenses) and income tax benefit
(expenses), and certain non-cash expenses, consisting of
stock-based compensation expenses, amortization and depreciation
that Sinovac does not believe are reflective of the core operating
performance during the periods presented.
Non-GAAP net income from continuing
operations represents net income from continuing operations
before stock-based compensation expenses, and foreign exchange gain
or loss.
Non-GAAP diluted EPS from continuing
operations represents non-GAAP net income attributable to
ordinary shareholders from continuing operations divided by the
weighted average number of shares outstanding during the periods on
a diluted basis, including accounting for the effect of the assumed
conversion of options.
Contact
Sinovac Biotech Ltd.
Helen
Yang
Tel: +86-10-8279-9871
Fax: +86-10-6296-6910
Email: ir@sinovac.com
ICR Inc.
Bill Zima
U.S: 1-646-308-1707
Email: william.zima@icrinc.com
SINOVAC BIOTECH
LTD.
|
Consolidated
Balance sheets
|
As of June 30,
2016 and December 31, 2015
|
(Expressed in
thousands of U.S. Dollars, except for numbers of shares and per
share data)
|
|
|
|
|
|
Current
assets
|
|
June 30, 2016
(Unaudited)
|
|
December 31,
2015
|
|
|
|
|
|
Cash and cash
equivalents
|
$
|
49,218
|
$
|
63,834
|
Restricted
cash
|
|
1,585
|
|
1,626
|
Accounts receivable –
net
|
|
29,628
|
|
39,021
|
Inventories
|
|
21,540
|
|
18,685
|
Prepaid expenses and
deposits
|
|
785
|
|
958
|
Deferred tax
assets
|
|
4,064
|
|
2,603
|
Current assets held
for sale
|
|
-
|
|
1,797
|
Total current
assets
|
|
106,820
|
|
128,524
|
|
|
|
|
|
Property, plant and
equipment
|
|
64,005
|
|
63,940
|
Prepaid land lease
payments
|
|
9,209
|
|
9,574
|
Long-term prepaid
expenses
|
|
24
|
|
25
|
Prepayments for
acquisition of equipment
|
|
758
|
|
328
|
Deferred tax
assets
|
|
539
|
|
593
|
Total
assets
|
|
181,425
|
|
202,984
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
Short-term bank loans
and current portion of long-term bank loans and other
debt
|
|
23,819
|
|
21,775
|
Loan from a
non-controlling shareholder
|
|
2,407
|
|
2,470
|
Accounts payable and
accrued liabilities
|
|
22,054
|
|
22,524
|
Income tax
payable
|
|
363
|
|
1,643
|
Deferred
revenue
|
|
425
|
|
8,144
|
Deferred government
grants
|
|
1,539
|
|
1,202
|
Current liabilities
held for sale
|
|
-
|
|
243
|
Total current
liabilities
|
|
50,607
|
|
58,001
|
|
|
|
|
|
Deferred government
grants
|
|
3,609
|
|
4,730
|
Long-term bank
loans
|
|
2,956
|
|
756
|
Deferred
revenue
|
|
93
|
|
-
|
Other non-current
liabilities
|
|
737
|
|
756
|
Total long-term
liabilities
|
|
7,395
|
|
6,242
|
|
|
|
|
|
Total
liabilities
|
|
58,002
|
|
64,243
|
|
|
|
|
|
Commitments and
contingencies
|
|
|
|
|
Equity
|
|
|
|
|
Preferred
stock
|
|
-
|
|
-
|
Common
stock
|
|
57
|
|
57
|
Additional paid-in
capital
|
|
110,740
|
|
109,944
|
Accumulated other
comprehensive income
|
|
4,082
|
|
8,110
|
Statutory surplus
reserves
|
|
13,450
|
|
13,450
|
Accumulated
deficit
|
|
(16,531)
|
|
(8,281)
|
Total
shareholders' equity
|
|
111,798
|
|
123,280
|
|
|
|
|
|
Non-controlling
interests
|
|
11,625
|
|
15,461
|
Total
equity
|
|
123,423
|
|
138,741
|
Total liabilities
and equity
|
$
|
181,425
|
$
|
202,984
|
SINOVAC BIOTECH
LTD.
|
Consolidated
Statements of Comprehensive Income (loss)
|
For the three and
six months ended June 30, 2016 and 2015
|
(Unaudited)
|
(Expressed in
thousands of U.S. Dollars, except for numbers of shares and per
share data)
|
|
|
|
|
Three months
ended June 30
|
|
Six months
ended June 30
|
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
Sales
|
$
|
1,377
|
$
|
18,491
|
$
|
12,331
|
$
|
27,698
|
Cost of
sales
|
|
3,737
|
|
3,283
|
|
8,363
|
|
5,591
|
Gross profit
(loss)
|
|
(2,360)
|
|
15,208
|
|
3,968
|
|
22,107
|
|
|
|
|
|
|
|
|
|
Selling,
general and administrative expenses
|
|
8,264
|
|
9,014
|
|
14,464
|
|
15,820
|
Provision for
doubtful accounts
|
|
317
|
|
174
|
|
565
|
|
83
|
Research and
development expenses
|
|
2,781
|
|
2,213
|
|
4,851
|
|
4,410
|
Loss (gain) on
disposal of property, plant and equipment
|
|
78
|
|
(15)
|
|
121
|
|
(15)
|
Government
grants recognized in income
|
|
(11)
|
|
(440)
|
|
(484)
|
|
(443)
|
Total
operating expenses
|
|
11,429
|
|
10,946
|
|
19,517
|
|
19,855
|
Operating
income (loss)
|
|
(13,789)
|
|
4,262
|
|
(15,549)
|
|
2,252
|
|
|
|
|
|
|
|
|
|
Interest and
financing expenses
|
|
(401)
|
|
(421)
|
|
(784)
|
|
(1,009)
|
Interest
income
|
|
167
|
|
288
|
|
453
|
|
715
|
Other
income
|
|
20
|
|
6
|
|
236
|
|
81
|
Income
(loss) from continuing operations before income
taxes
|
|
(14,003)
|
|
4,135
|
|
(15,644)
|
|
2,039
|
Income tax
benefit (expense)
|
|
1,440
|
|
(440)
|
|
1,492
|
|
(991)
|
Income
(loss) from continuing operations
|
|
(12,563)
|
|
3,695
|
|
(14,152)
|
|
1,048
|
Income
(loss) from discontinued operations, net of tax of
nil
|
|
-
|
|
(244)
|
|
2,338
|
|
(436)
|
Net Income
(loss)
|
|
(12,563)
|
|
3,451
|
|
(11,814)
|
|
612
|
Less: Loss
(income) attributable to the non-controlling interests
|
|
3,004
|
|
(1,181)
|
|
3,564
|
|
(592)
|
Net Income
(loss) attributable to shareholders of Sinovac
|
|
(9,559)
|
|
2,270
|
|
(8,250)
|
|
20
|
|
|
|
|
|
|
|
|
|
Income
(loss) from continuing operations
|
|
(12,563)
|
|
3,695
|
|
(14,152)
|
|
1,048
|
Other
comprehensive income (loss) from continuing operations, net of tax
of nil
|
|
|
|
|
|
|
|
|
Foreign currency
translation adjustments
|
|
(2,849)
|
|
(11)
|
|
(2,443)
|
|
65
|
Comprehensive loss from continuing
operations
|
|
(15,412)
|
|
3,684
|
|
(16,595)
|
|
1,113
|
|
|
|
|
|
|
|
|
|
Income
(loss) from discontinued operations
|
|
-
|
|
(244)
|
|
2,338
|
|
(436)
|
Other
comprehensive income (loss) from discontinued operations, net of
tax of nil
|
|
|
|
|
|
|
|
|
Foreign currency
translation adjustments
|
|
-
|
|
-
|
|
(1,857)
|
|
(10)
|
Comprehensive income (loss) from
discontinued operations
|
|
-
|
|
(244)
|
|
481
|
|
(446)
|
|
|
|
|
|
|
|
|
|
Comprehensive income
(loss)
|
|
(15,412)
|
|
3,440
|
|
(16,114)
|
|
667
|
Less:
comprehensive loss (income) attributable to non-controlling
interests
|
|
3,327
|
|
(1,186)
|
|
3,836
|
|
(604)
|
Comprehensive income (loss) attributable
to
shareholders of Sinovac
|
$
|
(12,085)
|
$
|
2,254
|
$
|
(12,278)
|
$
|
63
|
|
|
|
|
|
|
|
|
|
Earnings
(loss) per share
|
|
|
|
|
|
|
|
|
Basic net income
(loss) per share:
|
|
|
|
|
|
|
|
|
Continuing
operations
|
|
(0.17)
|
|
0.04
|
|
(0.19)
|
|
0.01
|
Discontinued
operations
|
|
0.00
|
|
0.00
|
|
0.05
|
|
(0.01)
|
Basic net income
(loss) per share
|
|
(0.17)
|
|
0.04
|
|
(0.14)
|
|
0.00
|
|
|
|
|
|
|
|
|
|
Diluted net income
(loss) per share:
|
|
|
|
|
|
|
|
|
Continuing
operations
|
|
(0.17)
|
|
0.04
|
|
(0.19)
|
|
0.01
|
Discontinued
operations
|
|
0.00
|
|
0.00
|
|
0.05
|
|
(0.01)
|
Diluted net income
(loss) per share
|
|
(0.17)
|
|
0.04
|
|
(0.14)
|
|
0.00
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted
average number of shares of
|
|
|
|
|
|
|
|
|
Basic
|
|
56,935,009
|
|
56,019,451
|
|
56,922,175
|
|
55,974,252
|
Diluted
|
|
56,935,009
|
|
56,187,591
|
|
56,990,675
|
|
56,219,495
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SINOVAC BIOTECH
LTD.
|
Consolidated
Statements of Cash Flows
|
For the three and
six months ended June 30, 2016 and 2015
|
(Unaudited)
|
(Expressed in
thousands of U.S. Dollars)
|
|
Three months
ended
|
Six months
ended
|
|
|
June
30
|
|
June
30
|
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
Cash flows used in
operating activities
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
$
|
(12,563)
|
$
|
3,452
|
$
|
(11,814)
|
$
|
612
|
Less: Income (loss)
from discontinued operations-net of tax
|
|
-
|
|
(244)
|
|
2,338
|
|
(436)
|
Income (loss) from
continuing operations
|
|
(12,563)
|
|
3,696
|
|
(14,152)
|
|
1,048
|
Adjustments to
reconcile net income to net cash provided by (used in) operating
activities:
|
|
|
|
|
|
|
|
|
- Deferred
income taxes
|
|
116
|
|
165
|
|
68
|
|
699
|
- Stock-based
compensation
|
|
316
|
|
208
|
|
632
|
|
321
|
- Inventory
provision
|
|
2,579
|
|
529
|
|
2,751
|
|
541
|
- Provision for
doubtful accounts
|
|
317
|
|
174
|
|
565
|
|
83
|
- Loss (gain)
on disposal and impairment of property, plant and
equipment
|
|
78
|
|
(15)
|
|
121
|
|
(15)
|
- Government
grants recognized in income
|
|
(11)
|
|
(440)
|
|
(484)
|
|
(443)
|
- Depreciation
of property, plant and equipment and amortization of
licenses
|
|
1,433
|
|
1,690
|
|
2,874
|
|
3,310
|
- Amortization
of prepaid land lease payments
|
|
63
|
|
66
|
|
126
|
|
132
|
- Accretion
expenses
|
|
-
|
|
30
|
|
-
|
|
59
|
Changes
in:
|
|
|
|
|
|
|
|
|
- Accounts
receivable
|
|
9,160
|
|
(1,770)
|
|
8,301
|
|
(3,613)
|
-
Inventories
|
|
(4,745)
|
|
(3,550)
|
|
(6,313)
|
|
(5,094)
|
- Income tax
payable
|
|
(2,350)
|
|
(382)
|
|
(2,840)
|
|
(382)
|
- Prepaid
expenses and deposits
|
|
243
|
|
(156)
|
|
116
|
|
498
|
- Deferred
revenue
|
|
374
|
|
(1,104)
|
|
(7,568)
|
|
(1,104)
|
- Accounts
payable and accrued liabilities
|
|
(1,031)
|
|
1,484
|
|
303
|
|
(3,140)
|
- Deferred
government grants
|
|
-
|
|
6
|
|
31
|
|
9
|
|
|
|
|
|
|
|
|
|
Net cash provided
by (used in) operating activities from continuing
operations
|
|
(6,021)
|
|
631
|
|
(15,469)
|
|
(7,091)
|
Net cash used in
operating activities from discontinued operations
|
|
-
|
|
(207)
|
|
(95)
|
|
(680)
|
Net cash provided
by (used in) operating activities
|
|
(6,021)
|
|
424
|
|
(15,564)
|
|
(7,771)
|
|
|
|
|
|
|
|
|
|
Cash flows
provided by (used in) financing activities
|
|
|
|
|
|
|
|
|
- Proceeds from
bank loans
|
|
9,412
|
|
11,154
|
|
22,654
|
|
11,956
|
- Repayments of
bank loans
|
|
(15,151)
|
|
(9,138)
|
|
(17,751)
|
|
(28,541)
|
- Proceeds from
issuance of common stock,
|
|
729
|
|
236
|
|
760
|
|
500
|
net of
share issuance costs
|
|
|
|
|
|
|
|
|
- Proceeds from
shares subscribed
|
|
36
|
|
9
|
|
36
|
|
9
|
Net cash provided
by (used in) financing activities
|
|
(4,974)
|
|
2,261
|
|
5,699
|
|
(16,076)
|
|
|
|
|
|
|
|
|
|
Cash flows used in
investing activities
|
|
|
|
|
|
|
|
|
- Acquisition
of property, plant and equipment
|
|
(1,066)
|
|
(1,064)
|
|
(4,611)
|
|
(2,845)
|
- Proceeds from
disposal of subsidiary
|
|
-
|
|
-
|
|
875
|
|
-
|
Net cash used
in investing activities from continuing operations
|
|
(1,066)
|
|
(1,064)
|
|
(3,736)
|
|
(2,845)
|
Net cash used in
investing activities from discontinued operations
|
|
-
|
|
-
|
|
(9)
|
|
-
|
Net cash used in
investing activities
|
|
(1,066)
|
|
(1,064)
|
|
(3,745)
|
|
(2,845)
|
|
|
|
|
|
|
|
|
|
Effect of exchange
rate changes on cash and cash
equivalents, including cash classified within current assets
held for sale
|
|
(1,234)
|
|
65
|
|
(1,149)
|
|
(70)
|
|
|
|
|
|
|
|
|
|
Increase
(decrease) in cash and cash
equivalents, including cash classified within current assets held
for sale
|
|
(13,295)
|
|
1,686
|
|
(14,759)
|
|
(26,762)
|
Less: Net decrease in
cash classified within current assets for sale
|
|
-
|
|
(35)
|
|
(143)
|
|
(140)
|
Increase
(decrease) in cash and cash equivalents
|
|
(13,295)
|
|
1,721
|
|
(14,616)
|
|
(26,622)
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents, beginning of period
|
|
62,513
|
|
62,950
|
|
63,834
|
|
91,293
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents, end of period
|
$
|
49,218
|
$
|
64,671
|
$
|
49,218
|
$
|
64,671
|
|
|
|
|
|
|
|
|
|
SINOVAC BIOTECH
LTD.
|
Reconciliations of
Non-GAAP measures to the nearest comparable GAAP
measures
|
For the three and
six months ended June 30, 2016 and 2015
|
(Unaudited)
|
(Expressed in
thousands of U.S. Dollars, except for numbers of shares and per
share data)
|
|
|
|
Three months
ended June 30
|
|
Six months
ended June 30
|
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
Income
(loss) from continuing operations
|
|
(12,563)
|
|
3,695
|
|
(14,152)
|
|
1,048
|
Adjustments:
|
|
|
|
|
|
|
|
|
Stock-based compensation
|
|
316
|
|
208
|
|
632
|
|
321
|
Depreciation and amortization
|
|
1,496
|
|
1,756
|
|
3,000
|
|
3,442
|
Interest
and financing expenses, net of interest income
|
|
234
|
|
133
|
|
331
|
|
294
|
Net
other (income) expense
|
|
(20)
|
|
(6)
|
|
(236)
|
|
(81)
|
Income
tax (benefit) expense
|
|
(1,440)
|
|
440
|
|
(1,492)
|
|
991
|
Non-GAAP
EBITDA
|
|
(11,977)
|
|
6,226
|
|
(11,917)
|
|
6,015
|
|
|
|
|
|
|
|
|
|
Income
(loss) from continuing operations
|
|
(12,563)
|
|
3,695
|
|
(14,152)
|
|
1,048
|
Add:
Foreign exchange loss (gain)
|
|
526
|
|
(5)
|
|
403
|
|
(22)
|
Add:
Stock-based compensation
|
|
316
|
|
208
|
|
632
|
|
321
|
Non-GAAP net
income (loss) from continuing operations
|
|
(11,721)
|
|
3,898
|
|
(13,117)
|
|
1,347
|
|
|
|
|
|
|
|
|
|
Net Income
(loss) from continuing operations attributable to shareholders of
Sinovac
|
|
(9,559)
|
|
2,514
|
|
(10,588)
|
|
456
|
Add: Non-GAAP
adjustments to net income from continuing operations
|
|
842
|
|
203
|
|
1,035
|
|
299
|
Non-GAAP net
income attributable to shareholders of Sinovac from continuing
operations for computing non-GAAP diluted earnings (loss) per
share
|
|
(8,717)
|
|
2,717
|
|
(9,553)
|
|
755
|
|
|
|
|
|
|
|
|
|
Weighted
average number of shares on a diluted basis
|
|
56,935,009
|
|
56,187,591
|
|
56,990,675
|
|
56,219,495
|
Diluted
earnings (loss) per share from continuing
operations
|
|
(0.17)
|
|
0.04
|
|
(0.19)
|
|
0.01
|
Add: Non-GAAP
adjustments to net income per share from continuing operations
|
|
0.02
|
|
0.01
|
|
0.02
|
|
-
|
Non-GAAP
Diluted EPS from continuing operations
|
|
(0.15)
|
|
0.05
|
|
(0.17)
|
|
0.01
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/sinovac-reports-unaudited-second-quarter-2016-financial-results-300316922.html
SOURCE Sinovac Biotech Co., Ltd.