NEW YORK, May 10 /PRNewswire-Asia-FirstCall/ -- American
Oriental Bioengineering, Inc. (NYSE: AOB), ("the Company" or
"AOBO"), a pharmaceutical company dedicated to improving health
through the development, manufacture and commercialization of a
broad range of prescription and over the counter ("OTC") products,
today announced financial results for the first quarter ended
March 31, 2010.
First Quarter 2010 Financial Performance
Revenue in the first quarter of 2010 increased 16.7% year over
year to $53.7 million from
$46.1 million, reflecting continued
demand for the Company's core prescription and OTC pharmaceutical
products.
-- Revenue from pharmaceutical products increased 17.8% to $40.9 million
from $34.7 million in the first quarter of 2009, driven by increased
demand for the Shuanghuanglian ("SHL") Injection Powder, BOKE and CCXA
pharmaceutical products, as well as the newly-launched products such as
YuYeQingHuo Capsules. Revenue from prescription pharmaceutical products
increased 29.3% to $20.9 million from $16.2 million in the prior year
period, reflecting a year over year increase in sales from the
prescription Jinji capsule, SHL powder, Boke and CCXA prescription
products. The overall increase in sales was also supported by
continuous marketing efforts, an increase in new product offerings, and
expansion of coverage to previously unaddressed rural markets. OTC
pharmaceutical products generated $19.9 million in revenue during the
first quarter of 2010, in comparison to $18.5 million in the prior year
period, reflecting increased sales of our Boke and CCXA products as a
result of improved recognition of those products.
-- Nutraceutical products generated revenue of approximately $9.7 million
in the first quarter of 2010, up 8.5% from $8.9 million in the prior
year period, reflecting increased sales of new beverage products
launched in the second quarter of 2009.
-- The Company generated $3.2 million from its distribution business, Nuo
Hua, in the first quarter of 2010. An increase of 29.5% was mainly
attributed to the Nuo Hua's expanding market coverage.
Gross profit in the first quarter of 2010 was $28.2 million, compared to $28.4 million in the first quarter of 2009. Gross
margin was 52.5%, compared to 61.7% in the prior year period,
reflecting continued revenue mix shift to CCXA's generic product
sales as well as increasing raw material prices.
Operating income in the first quarter of 2010 was $6.4 million, compared to $10.9 million in the prior year period. Selling
and marketing expenses increased 14.7% to $6.0 million from $5.2
million in the prior year period, and advertising expense
increased 21.2% to $6.7 million in
the first quarter of 2010 from $5.6
million in the prior year period. General and administrative
expenses increased 8.6% to $4.8
million from $4.4 million in
the prior year period. Research and development expenses increased
to $2.8 million from $0.7 million in the prior year period. This
reflects the Company's continuing efforts to invest in the
centralized R&D centre in Beijing.
Net income attributable to controlling interest for the first
quarter of 2010 was $3.1 million,
compared to $7.2 million in the prior
year period. The Company's net income attributable to controlling
interest was $0.04 per diluted share,
compared to $0.10 per diluted share
in the same period of 2009.
Balance Sheet
As of March 31, 2010, the Company
had $99.0 million in cash and cash
equivalents, including restricted portions, and generated
approximately $5.8 million of
operating cash flow during the first quarter of 2010. Working
capital was $136.9 million as of
March 31, 2010, reflecting an
increase of 4.6% from $130.9 million
as of December 31, 2009.
Mr. Tony Liu, Chairman and Chief
Executive Officer of American Oriental Bioengineering, commented,
"We are very satisfied with our performance in the first quarter,
despite the challenging global economic environment and the
changing Chinese regulatory environment. During the past quarter,
we continued to invest heavily in R&D, which consumed 5% of
total revenue, in order to upgrade our existing products and
develop new proprietary products to lay a solid foundation for
AOBO's near term and long term growth. Meanwhile, we continued to
fortify our market position, strengthen our presence in rural
areas, and diversify our business operations through cost control,
advertising campaigns, and sales network expansion. We are
confident that we will achieve initial success from the above
combined efforts in the latter part of this year."
Conference Call
The Company will hold a conference call at 8:00 am ET on Monday, May
10, to discuss its results. Listeners may access the call by
dialing 1-866-804-6927 or 1-857-350-1673 for international callers,
access code: 92995812. A webcast will also be available through
AOB's website at http://www.bioaobo.com . A replay of the call will
be available through May 17, 2010.
Listeners may access the replay by dialing 1-888-286-8010 or
1-617-801-6888 for international callers, access code:
50942560.
About American Oriental Bioengineering, Inc.
American Oriental Bioengineering, Inc. is a pharmaceutical
company dedicated to improving health through the development,
manufacture and commercialization of a broad range of prescription
and over the counter products.
Statements made in this press release are forward-looking and
are made pursuant to the safe harbor provisions of the Securities
Litigation Reform Act of 1995. Such statements involve risks and
uncertainties that may cause actual results to differ materially
from those set forth in these statements. The economic,
competitive, governmental, technological and other factors
identified in the Company's filings with the Securities and
Exchange Commission, including the Form 10-K for the year ended
December 31, 2010, may cause actual
results or events to differ materially from those described in the
forward looking statements in this press release. The Company
undertakes no obligation to publicly update or revise any
forward-looking statements, whether because of new information,
future events, or otherwise.
For more information, please contact:
Integrated Corporate Relations, Inc.
Ashley M. Ammon
Tel: +1-646-277-1200
AMERICAN ORIENTAL BIOENGINEERING, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
MARCH 31, DECEMBER 31,
2010 2009
CURRENT ASSETS
Cash and cash equivalents $95,787,301 $91,126,486
Restricted Cash 3,209,381 3,298,379
Accounts and notes receivable, net 53,503,601 57,504,454
Inventories, net 19,838,535 10,015,711
Advances to suppliers and prepaid
expenses 5,525,812 13,901,180
Deferred tax assets 590,330 824,451
Other current assets 1,494,931 1,246,647
Total Current Assets 179,949,891 177,917,308
LONG-TERM ASSETS
Property, plant and equipment, net 94,614,699 95,468,265
Land use rights, net 152,805,027 153,604,196
Other long term assets 7,930,112 7,909,086
Construction in progress 30,111,567 28,975,386
Other intangible assets, net 17,480,990 18,695,554
Goodwill 33,164,121 33,164,121
Investments in and advances to
equity investments 57,461,382 57,325,887
Deferred tax assets 138,746 134,268
Unamortized financing costs 3,055,621 3,287,694
Total Long-Term Assets 396,762,265 398,564,457
TOTAL ASSETS $576,712,156 $576,481,765
LIABILITIES AND SHAREHOLDERS' EQUITY
MARCH 31, DECEMBER 31,
2010 2009
CURRENT LIABILITIES
Accounts payable $10,660,316 $7,497,143
Notes payable 3,297,568 3,392,575
Other payables and accrued expenses 14,935,485 22,320,757
Taxes payable 352,439 947,338
Short-term bank loans 10,386,039 10,384,368
Current portion of long-term bank
loans 60,404 60,108
Other liabilities 3,140,176 2,199,280
Deferred tax liabilities 172,017 172,473
Total Current Liabilities 43,004,444 46,974,042
LONG-TERM LIABILITIES
Long-term bank loans 727,731 743,957
Deferred tax liabilities 15,737,755 15,961,465
Unrecognized tax benefits 3,300,625 2,746,561
Convertible Notes 115,000,000 115,000,000
Total Long-Term Liabilities 134,766,111 134,451,983
TOTAL LIABILITIES 177,770,555 181,426,025
EQUITY
SHAREHOLDERS' EQUITY
Preferred stock, $0.001 par value;
2,000,000 shares authorized;
1,000,000 shares issued and
outstanding at March 31, 2010
and December 31, 2009, respectively 1,000 1,000
Common stock, $0.001 par value;
150,000,000 shares authorized;
78,321,439 shares issued and
outstanding at March 31, 2010
and December 31, 2009 78,321 78,321
Common stock to be issued 485,000 388,000
Prepaid forward repurchase contract (29,998,616) (29,998,616)
Additional paid-in capital 200,408,156 199,829,921
Retained earnings (the restricted
portion of retained earnings is
$23,757,901 at both March 31 and
December 31, 2009) 194,296,931 191,173,754
Accumulated other comprehensive
income 33,143,073 33,050,224
Total Shareholders' Equity 398,413,865 394,522,604
Non-controlling Interest 527,736 533,136
TOTAL EQUITY 398,941,601 395,055,740
TOTAL LIABILITIES AND EQUITY $576,712,156 $576,481,765
AMERICAN ORIENTAL BIOENGINEERING, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME
(UNAUDITED)
THREE MONTHS ENDED
MARCH 31,
2010 2009
Revenues $53,749,768 $46,077,190
Cost of sales 25,513,047 17,660,338
GROSS PROFIT 28,236,721 28,416,852
Selling and marketing expenses 5,976,226 5,211,502
Advertising costs 6,748,470 5,567,357
Research and development costs 2,778,809 749,798
General and administrative expenses 4,766,486 4,390,701
Depreciation and amortization
expenses 1,596,958 1,632,586
Total operating expenses 21,866,949 17,551,944
INCOME FROM OPERATIONS 6,369,772 10,864,908
Equity in earnings from
unconsolidated entities 117,473 437,794
Interest expense, net (1,565,785) (1,579,269)
Other income (expenses) 12,247 (98,609)
INCOME BEFORE INCOME TAXES 4,933,707 9,624,824
Income tax 1,815,930 2,469,764
NET INCOME 3,117,777 7,155,060
Net loss (income) attributable to
non-controlling interest 5,400 (3,551)
NET INCOME ATTRIBUTABLE TO
CONTROLLING INTEREST 3,123,177 7,151,509
OTHER COMPREHENSIVE INCOME 92,849 491,337
COMPREHENSIVE INCOME $3,216,026 $7,642,846
EARNINGS PER COMMON SHARE
Basic $0.04 $0.10
Diluted $0.04 $0.10
WEIGHTED AVERAGE SHARES OUTSTANDING
Basic 74,697,044 74,538,593
Diluted 89,460,953 86,917,603
SOURCE American Oriental Bioengineering, Inc.