Highpower International, Inc. Reports First Quarter 2012 Financial Results
(firmenpresse) - NEW YORK, NY and SHENZHEN, CHINA -- (Marketwire) -- 05/11/12 -- (NASDAQ: HPJ), a developer, manufacturer and marketer of nickel-metal hydride (Ni-MH) and lithium rechargeable batteries and battery solutions, today announced financial results for the first quarter ended March 31, 2012.
Breakeven EPS for the first quarter of 2012
Sustained growth in lithium battery segment -- lithium battery net sales up 40% in the first quarter of 2012 over the first quarter of 2011; total lithium battery pieces sold increased 30%; and a 42% increase in volume per ampere hour
Reaffirms 2012 guidance of year-over-year revenue growth of 15% to 25%
"Lithium batteries continued to be a bright spot for us in the first quarter, with volumes up over 40% from last year's first quarter based on strong demand for our products in a number of end markets, particularly in e-bikes and scooters, which will remain a focus for the rest of the year," said Mr. George Pan, Chairman and Chief Executive Officer of Highpower International. "We are well positioned to meet this demand in these high growth markets and look forward to another year of solid growth in our lithium battery business."
Mr. Henry Sun, Chief Financial Officer of Highpower International, added, "We are pleased with the improvements we saw on the profitability front this quarter, ending the first quarter breakeven. Traditionally the first quarter has always been our slowest quarter due to the Chinese New Year. However, in addition to normal seasonality, one of our nickel metal hydride (Ni-MH) customers underwent an inventory readjustment during the first quarter, resulting in lower overall Ni-MH revenues. We also continued to shift our Materials business to a full-scale, more profitable e-waste and recycling model, which had a negative impact on our revenue."
"We are confident that our Ni-MH business will see a recovery in the second quarter. Moreover, our lithium business is well positioned to continue to show excellent growth and the investments we are making in our full-scale recycling program will be a strong contributor to our profitability in the future," concluded Mr. Sun.
Net sales for the first quarter ended March 31, 2012 totaled $20.6 million, a year-over-year decrease of 24% compared with $27.0 million for the first quarter ended March 31, 2011. The decrease in sales for the first quarter was primarily due to a decrease in the number of Ni-MH battery units sold due to a customer inventory readjustment and a decline in revenues in the Materials segment as this business shifts to a full recycling platform.
First quarter 2012 gross profit decreased to $3.7 million, as compared with $4.0 million for the first quarter of 2011. Gross profit margin was 17.8% for the first quarter of 2012, as compared with 14.8% for the first quarter of 2011, or a 298 basis point increase. The year-over-year increase in gross profit margin for the first quarter of 2012 was primarily due to a shift in our revenue mix away from the low margin Materials business, which represented 2% of total revenue in the first quarter of 2012 as compared with 26% in the first quarter of 2011. Gross profit margins for our NiMH and lithium batteries were down modestly from the previous year as a result of higher labor costs.
R&D spending was $0.9 million for the first quarter of 2012, as compared with $0.6 million for the comparable period in 2011, reflecting our continued increased investments in new product research.
Selling and distribution costs were $1.2 million for both the first quarter of 2012 and 2011.
General and administrative expenses, including non-cash stock-based compensation, were $2.0 million for the first quarter of 2012, as compared with $2.1 million for the first quarter of 2011.
Loss from operations for the first quarter of 2012 was $0.1 million as compared with loss from operations of $0.5 million for the first quarter of 2011.
Net income attributable to Highpower International (exclusive of loss attributable to non-controlling interest) for the first quarter of 2012 was $3,185, or $0.00 per diluted share, based on 13.6 million weighted average shares outstanding. This compares with first quarter 2011 net loss of $394,668, or ($0.03) per diluted share, based on 13.6 million weighted average shares outstanding.
At March 31, 2012, Highpower International had cash, cash equivalents and restricted cash totaling $29.7 million, total assets of $99.5 million, and stockholders' equity of $28.9 million. Bank credit facilities totaled $57.4 million at March 31, 2012, of which $40.5 million was utilized and $16.9 million was available as unused credit.
Based on our current expectations for global demand for the rechargeable battery market in 2012 and our continued shift toward higher-value energy storage systems and transportation products, we reaffirm that we expect revenues to grow between 15% and 25% over 2011 revenue levels.
The Company will host a conference call today at 7:00 a.m. Pacific time/10:00 a.m. Eastern time to discuss these results and answer questions.
Individuals interested in participating in the conference call may do so by dialing 800-762-8779 from the U.S. or 480-629-9645 from outside the U.S. and referencing the reservation code 4536828. Those interested in listening to the conference call live via the Internet may do so by visiting the Investor Relations section of the Company's Web site at or .
Highpower International was founded in 2001 and produces rechargeable batteries using Ni-MH and lithium technologies. With over 2,600 employees and prominent international customers, Highpower is committed to expanding its market through continuous research and development as well as increased vertical integration efforts. As a company, Highpower International is committed to clean technology, not only in the products it makes, but also in the processes used to make them. The majority of Highpower International's products are distributed worldwide to markets in the United States, Europe, China and Southeast Asia.
This press release contains "forward-looking statements" within the meaning of the "safe-harbor" provisions of the Private Securities Litigation Reform Act of 1995 that are not historical facts. These statements can be identified by the use of forward-looking terminology such as "believe," "expect," "may," "will," "should," "project," "plan," "seek," "intend," or "anticipate" or the negative thereof or comparable terminology, and include discussions of strategy, and statements about industry trends and the Company's future performance, operations and products. Such statements involve known and unknown risks, uncertainties and other factors that could cause the Company's actual results to differ materially from the results expressed or implied by such statements. For a discussion of these and other risks and uncertainties see "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" in the Company's public filings with the SEC. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, there can be no assurance that such expectations will prove to be correct. The Company has no obligation to update the forward-looking information contained in this press release.
financial tables to follow
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Datum: 11.05.2012 - 11:00 Uhr
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