Man Shing Agricultural Holdings, Inc. (OTCBB: MSAH) ("Man Shing,"
the "Company," "we," "us," or "our"), located in the Shandong
Province and one of the largest Chinese exporters of high quality,
fresh ginger to Japan, the United Kingdom, and the Netherlands,
today announced the financial results for the quarter and nine
months ended March 31, 2012. The Company had earnings per share of
$0.08 and $0.18 per share for the 2012 fiscal third quarter and
first nine months ending March 31, 2012. Additionally, Man Shing
reported $15.5 million, or $0.32 per share, in cash and cash
equivalents as of March 31, 2012.
Financial Highlights for the Three Months Ended
March 31, 2012
- Revenue increased 17.3% year-over-year to $9.3 million;
- Gross profit increased 37.3% to $4.6 million, gross margin
improved to 48.9% vs. 41.8% YOY;
- Net income increased 65.4% to $3.8 million;
- EPS of $0.08 based on 48.1 million shares outstanding;
- Cash and cash equivalents totaled $15.5 million, or $0.32 per
share.
Mr. Shili Liu, Chairman and Chief Executive Officer of Man
Shing, stated, "During the third quarter, we successfully used the
leverage in our unique business model to utilize the current
infrastructure to generate additional revenue with very little
incremental increases in our expenses. This enabled us to increase
margins and profitability. As a result, year-over-year gross profit
margin for the quarter increased from 41.8% to 48.9% and net income
margin increased from 29% to 41%, yielding an increase in net
income of 65.4%. We also enhanced our earnings by producing more
products with higher margins. During the quarter, we generated $8.8
million in operating cash flow as compared to $2.3 million during
the quarter ended March 31, 2011, and as of March 31, 2012 we had
$15.5 million, or $0.32 per share, of cash. Our strong cash flow
will help us prepare for the upcoming planting season and better
enable us in bringing our products to market, while further
evaluating new higher margin products."
Financial results for the third quarter ended
March 31, 2012
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Third Fiscal Quarter 2012 (USD) (unaudited)
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Three Months Ended March 31, 2012 2011 CHANGE
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Revenue $9.3 million $8 million +17.3%
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Gross Profit $4.6 million $3.3 million +37.3%
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Gross Profit Margin 48.9% 41.8% +17%
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Net Income $3.8 million $2.3 million +65.4%
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Basic EPS* $0.08 $0.05 -
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Diluted EPS ** $0.08 $0.05 -
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* Based on 48.1 million and 45.1 million shares outstanding for 2012 and
2011 fiscal third quarters, respectively.
** Based on 49.9 million and 46.9 million fully diluted shares outstanding
for 2012 and 2011 fiscal third quarters, respectively.
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Financial Results for the Third Quarter Ended
March 31, 2012 Revenue for the third quarter ended March 31,
2012 totaled $9.3 million, an increase of 17.3%, as compared to $8
million for the same period in fiscal 2011. The fiscal third
quarter represented the Company's first full quarter of harvested
product from the additional 2.4 million square meters of land
leased in March of 2011. During the quarter, the demand for our
products remained at an all-time high. Geographic revenue
contribution during the quarter was 69% through distribution
partners within China and direct sales of 17% to Japan, 10% to the
United Kingdom, 1% to the Netherlands and 3% to other
countries.
Cost of sales for the third quarter ended March 31, 2012 totaled
$4.8 million, an increase of 3%, compared to $4.6 million for the
third quarter ended March 31, 2011. Cost of sales includes the
costs associated with the planting, harvesting, and storing of
ginger and other agricultural products such as ginger seeds and
fertilizers. Cost of revenues as a percentage of total revenue
decreased from 58% in fiscal 2011 to 51% during the current quarter
due primarily to a decrease in the costs of planting and
production.
Gross profit for the third quarter ended March 31, 2012 totaled
$4.6 million, an increase of 37.3% compared to $3.3 million for the
third quarter ended March 31, 2011. Gross profit margin increased
to 48.9% during the current quarter as compared to 41.8% for the
prior year. The increase in gross profit margin was primarily
attributable to a decrease in the cost of planting costs.
Net income for the third quarter ended March 31, 2012 totaled
$3.8 million, an increase of 65.4%, as compared to $2.3 million for
the third quarter ended March 31, 2011. Net income margin improved
to 41% for the current quarter as compared to 29% the year prior.
Basic and diluted earnings per share for the third quarter ended
March 31, 2012 were $0.08, based on 48.1 million basic and 49.9
million diluted shares outstanding, respectively. These results
compare to basic and diluted earnings per share of $0.05 for the
same periods the year prior, based on 45.1 million basic and 46.9
million diluted shares outstanding, respectively.
Financial Highlights for the Nine Months Ended
March 31, 2012
- Revenue increased 7.9% year-over-year to $25.3 million;
- Gross profit increased 15% to $11.3 million; gross margin
improved to 44.7% vs. 41.9% YOY;
- Net income increased 26.4% to $8.6 million;
- EPS of $0.18 based on 48.1 million shares outstanding.
Financial results for the nine months ended
March 31, 2012
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2012 Fiscal First Nine Months (USD) (unaudited)
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Nine Months Ended March 31, 2012 2011 CHANGE
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Revenue $25.3 million $23.4 million +7.9%
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Gross Profit $11.3 million $9.8 million +15%
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Gross Profit Margin 44.7% 41.9% +6.7%
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Net Income $8.6 million $6.8 million +26.4%
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Basic EPS* $0.18 $0.17 -
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Diluted EPS ** $0.17 $0.11 -
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* Based on 48.1 million and 40.4 million shares outstanding for 2012 and
2011 fiscal third quarters, respectively.
** Based on 49.8 million and 62.8 million fully diluted shares outstanding
for 2012 and 2011 fiscal third quarters, respectively.
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Financial Results for the Nine Months Ended
March 31, 2012 Revenue for the nine months ended March 31,
2012 totaled $25.3 million, an increase of 7.9% compared to $23.4
million for the same period in fiscal 2011. Geographic revenue
contribution for the nine month period ended March 31, 2012 was 67%
through distribution partners within China and direct sales of 18%
to Japan, 8% to the United Kingdom, 3% to the Netherlands and 4% to
other countries.
Cost of sales for the nine months ended March 31, 2012 totaled
$14 million, an increase of 2.9% compared to $13.6 million for the
nine months ended March 31, 2011. Cost of sales includes the costs
associated with the planting, harvesting and maintaining of ginger
and other agricultural products. Cost of revenues as a percentage
of total revenue decreased from 58% in fiscal 2011 to 55% during
the current quarter due primarily to a decrease in costs of
planting and production.
Gross profit for the nine months ended March 31, 2012 totaled
$11.3 million, an increase of 15% compared to $9.8 million for the
nine months ended March 31, 2011. Gross profit margin was 44.7% for
the current nine month period ended March 31, 2012 as compared to
41.9% the year prior.
Net income for the nine months ended March 31, 2012 totaled $8.6
million, an increase of 26.4% compared to $6.8 million for the nine
months ended March 31, 2011. Net income margin increased to 34% for
the current nine month period as compared to 29% the year prior.
Basic and diluted earnings per share for the nine months ended
March 31, 2012 was $0.18 and $0.17, based on 48.1 million basic and
49.8 million diluted shares outstanding, versus basic and diluted
earnings per share of $0.17 and $0.11 for the same period the year
prior, based on 40.4 million basic and 62.8 million diluted shares
outstanding, respectively.
Liquidity and Capital Resources As of
March 31, 2012, Man Shing had approximately $15.5 million in cash
and cash equivalents, or $0.32 per share based on 48.2 million
shares outstanding. As of December 31, 2011, total current assets
and total assets were approximately $37.5 million and $39.3
million, respectively. Total current liabilities and total
liabilities were approximately $4.6 million and $6.1 million,
respectively. Working capital totaled $32.9 million as of March 31,
2012, as compared to $23.6 million as of June 30, 2011.
Shareholder's equity totaled $33.2 million as of March 31, 2012, as
compared to $23.7 million as of June 30, 2011.
About Man Shing Agricultural Holdings,
Inc. Man Shing Agricultural Holdings, Inc., through its
operating subsidiary in Shandong China, is focused on the
production and processing of fresh ginger and other select
vegetables such as onion and garlic. The Company produces high
quality ginger which meets the requirements of the British Retail
Consortium Global Food Standard. The Company focuses on customers
located in countries such as Japan and the European Union which are
food safety oriented. For further information about Man Shing
Agricultural Holdings, Inc., please visit the Company's website at
http://www.msaginger.com/
Forward Looking Statements: This press
release contains forward-looking statements within the meaning of
Section 27A of the Securities Act of 1933, and Section 21E of the
Securities Exchange Act of 1934. These statements relate to future
events or our future financial performance. We have attempted to
identify forward-looking statements by terminology including
"anticipates," "believes," "expects," "can," "continue," "could,"
"estimates," "expects," "intends," "may," "plans," "potential,"
"predict," "should" or "will" or the negative of these terms or
other comparable terminology. These statements are only
predictions. Uncertainties and other factors may cause our actual
results, levels of activity, performance or achievements to be
materially different from any future results, levels or activity,
performance or achievements expressed or implied by these
forward-looking statements.
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.
Our expectations are as of the date hereof, and we do not intend to
update any of the forward-looking statements after the filing date
to conform these statements to actual results, unless required by
law.
We file annual reports on Form 10-K, quarterly reports on Form
10-Q, current reports on Form 8-K and proxy and information
statements and amendments to reports filed or furnished pursuant to
Sections 13(a) and 15(d) of the Securities Exchange Act of 1934, as
amended. You may read and copy these materials at the SEC's Public
Reference Room at 100 F Street, N.E., Washington, D.C. 20549. You
may obtain information on the operation of the public reference
room by calling the SEC at 1-800-SEC-0330. The SEC also maintains a
website (http://www.sec.gov) that contains reports, proxy and
information statements and other information regarding us and other
companies that file materials with the SEC electronically.
Man Shing Agricultural Holdings, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets (unaudited)
March 31, 2012 June 30, 2011
ASSETS
CURRENT ASSETS
Cash and cash equivalents $ 15,457,235 $ 7,081,297
Accounts receivable, trade, net 9,753,673 6,330,625
Inventories 8,631,822 4,880,266
Deferred inventory costs 2,427,625 9,064,571
Prepayments 238,716 371,881
Other receivables 808 787
Tax recoverable 989,948 577,995
TOTAL CURRENT ASSETS 37,499,827 28,307,422
FIXED ASSETS
Property, plant, and equipment 2,210,085 1,619,838
Accumulated depreciation (390,609) (257,250)
Construction in progress - 211,752
NET FIXED ASSETS 1,819,476 1,574,340
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TOTAL ASSETS $ 39,319,303 $ 29,881,762
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Short-term borrowing $ 1,588,739 $ 1,916,064
Accounts payable 1,028,646 691,628
Other payables and accrued liabilities 1,631,580 1,685,016
Receipts in advance 362,265 402,557
TOTAL CURRENT LIABILITIES 4,611,230 4,695,265
LONG-TERM LIABILITIES
Convertible note 1,500,000 1,500,000
TOTAL LIABILITIES 6,111,230 6,195,265
STOCKHOLDERS' EQUITY
Preferred stock, $.001 par, 25,000,000
shares authorized, 176,750 shares issued
and outstanding at March 31, 2012 and June
30, 2011, respectively 177 177
Common stock, $.001 par, 175,000,000 shares
authorized, 48,226,958 and 48,026,958
shares issued and outstanding at March 31,
2012 and June 30, 2011, respectively 48,227 48,027
Additional paid-in capital 4,227,345 4,210,545
Accumulated other comprehensive income 2,127,694 1,180,599
Statutory reserves 10,198,223 5,823,139
Retained earnings 16,606,407 12,424,010
TOTAL STOCKHOLDERS' EQUITY 33,208,073 23,686,497
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TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 39,319,303 $ 29,881,762
============== =============
Man Shing Agricultural Holdings, Inc. and Subsidiaries
Unaudited Condensed Consolidated Statements of Operations and Comprehensive
Income
For the Three and Nine Months Ended March 31, 2012 and 2011
For the Three For the Nine
Months Ended Months Ended
------------------------ ------------------------
March 31, March 31, March 31, March 31,
2012 2011 2012 2011
Revenues
Sales $ 9,318,536 $ 7,947,540 $25,278,387 $23,419,274
Cost of sales 4,757,787 4,625,866 13,987,852 13,598,988
Gross profit 4,560,749 3,321,674 11,290,535 9,820,286
Operating expenses
Selling and marketing
expenses 557,289 697,745 1,832,899 2,196,824
General and
administrative
expenses 225,460 320,741 863,904 716,096
Total Operating Expenses 782,749 1,018,486 2,696,803 2,912,920
Operating income 3,778,000 2,303,188 8,593,732 6,907,366
Other income (expenses),
net
Financial income
(expenses), net (68,086) (71,489) (192,815) (219,432)
Non-operating income
(expense), net 114,309 80,167 156,566 80,273
Total other income
(expenses), net 46,223 8,678 (36,249) (139,159)
Income from Operations
before income taxes 3,824,223 2,311,866 8,557,483 6,768,207
Income taxes - - - -
Net Income 3,824,223 2,311,866 8,557,483 6,768,207
Other comprehensive
income, net
Foreign currency
translation gain, net 306,843 222,610 947,095 665,899
Total comprehensive
income $ 4,131,066 $ 2,534,476 $ 9,504,578 $ 7,434,106
Weighted average number
of shares outstanding
Basic 48,095,090 45,138,069 48,049,503 40,371,280
Diluted 49,862,590 46,905,569 49,817,003 62,804,934
Earnings per share
Basic $ 0.08 $ 0.05 $ 0.18 $ 0.17
Diluted $ 0.08 $ 0.05 $ 0.17 $ 0.11
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Company Contact: Man Shing Agricultural Holdings, Inc.
Mr. Shili Liu CEO, Chairman and president Email Contact Mr. Kenny
Chow CFO Email Contact +86-536-464-4888 +852-2530-3122
www.msaginger.com Investor Contact: Alliance Advisors, LLC
Alan Sheinwald President & Founder (914) 669-0222 Email Contact
www.AllianceAdvisors.net
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