Highpower International, Inc. Reports Third Quarter 2012 Financial Results
Record Lithium and Ni-MH Battery Sales; Increasing Profitability and Gross Margin Improvement
(firmenpresse) - NEW YORK, NY and SHENZHEN, CHINA -- (Marketwire) -- 11/13/12 -- (NASDAQ: HPJ), a developer, manufacturer and marketer of nickel-metal hydride (Ni-MH) and lithium-based rechargeable batteries and battery solutions, today announced financial results for the third quarter ended September 30, 2012.
Grew net sales by 13.4% year-over-year and 8.5% sequentially for the third quarter of 2012 to $31.9 million
Set record sales levels in both major battery segments -- Lithium battery net sales up 87.7% over the third quarter of 2011 and 22.4% sequentially; Ni-MH battery net sales up 9.1% over the third quarter of 2011 and 0.9% sequentially
Strong gross margin expansion to 23.9% in the third quarter of 2012 from 13.8% in the third quarter 2011
Continued profitability; EPS attributable to Highpower International of $0.05 for third quarter of 2012
"Highpower experienced another healthy quarter of growth, marked by increasing momentum in sales and profitability," said Mr. George Pan, Chairman and Chief Executive Officer of Highpower International. "Our lithium battery business achieved record levels of sales and production, which was driven by increasing demand for portable power devices and our higher-end battery product offerings. Additionally, our Ni-MH business turned in a solid performance with strong volumes and improved margins."
"Looking ahead, we are well positioned to continue to gain market share through increased demand for our higher capacity battery products, industry consolidation, and our diversified international customer base. We see no signs of lithium battery demand subsiding, given the expanding worldwide appetite for portable devices such as smart phones, tablets, and energy storage applications. We are also actively pursuing opportunities in the electric transportation market, which we believe will provide another avenue of growth for us in the years ahead," concluded Mr. Pan.
Mr. Henry Sun, Chief Financial Officer of Highpower International, added, "We are pleased to have delivered our second straight quarter of profitability driven by robust margin improvement. We are benefiting from our shift towards higher-end products and a favorable commodity cost environment, as well as a shift away from our lower margin New Materials Business. We expect to continue to benefit from favorable commodity costs in the fourth quarter and that our European business will stabilize. Moreover, we look forward to launching a profitable battery and e-waste recycling business in 2013."
Net sales for the third quarter ended September 30, 2012 totaled $31.9 million, a year-over-year increase of 13.4% compared with $28.1 million for the third quarter ended September 30, 2011 and a sequential increase of 8.5% from the second quarter 2012. The year-over-year increase in sales for the third quarter was primarily due to strong year-over-year sales increases in both lithium and Ni-MH battery segments, which was offset by a decline in revenues in the New Materials segment as this business shifts to a full recycling platform in 2013.
Third quarter 2012 gross profit increased to $7.6 million, as compared with $3.9 million for the third quarter of 2011. Gross profit margin was 23.9% for the third quarter of 2012, as compared with 13.8% for the third quarter of 2011, or a 1,010 basis point improvement. The year-over-year increase in gross profit margin for the third quarter of 2012 was primarily due to higher sales volumes, lower commodity costs, a greater percentage of higher-end battery products, and a shift in our revenue mix away from the low margin New Materials business.
R&D spending was $1.1 million for the third quarter of 2012, as compared with $0.8 million for the comparable period in 2011, due to expansion of our workforce to expand research and development and management functions.
Selling and distribution costs were $1.4 million for third quarter of 2012 as compared with $1.5 million for the comparable period in 2011.
General and administrative expenses, including non-cash stock-based compensation, were $4.0 million for the third quarter of 2012, as compared with $2.2 million for the third quarter of 2011, with the increase resulting from our expanded infrastructure required to support our growth as well as a $0.8 million increase in bad debt expense.
Income from operations for the third quarter of 2012 was $1.0 million as compared with a loss from operations of ($0.8) million for the third quarter of 2011.
Net income attributable to Highpower International (exclusive of loss attributable to non-controlling interest) for the third quarter of 2012 was $0.6 million, or $0.05 per diluted share, based on 13.6 million weighted average shares outstanding. This compares with a third quarter 2011 net loss attributable to Highpower International (exclusive of loss attributable to non-controlling interest) of ($0.6) million, or ($0.05) per diluted share, based on 13.6 million weighted average shares outstanding.
At September 30, 2012, Highpower International had cash, cash equivalents and restricted cash totaling $27.8 million, total assets of $111.3 million, and stockholders' equity of $30.2 million. Total debt was $47.9 million at September 30, 2012. Bank credit facilities totaled $53.9 million, of which $19.9 million was available at the end of the quarter.
Based on our current expectations for global demand for the rechargeable battery market in 2012 and our continued shift toward higher-end products, we expect revenues from our battery business to grow at least 15% over 2011 revenue levels. The revenue growth in our Ni-MH and lithium businesses will be offset by the shift away from our traditional New Materials business to a full scale materials recycling business that will ramp up in 2013. We expect to remain profitable for the fourth quarter of fiscal 2012.
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 877-941-8609 from the U.S. or 480-629-9835 from outside the U.S. and referencing the reservation code 4573488. 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 Nickel-Metal Hydride (Ni-MH) and lithium-based rechargeable batteries used in electric bikes, energy storage systems, power tools, medical equipment, digital and electronic devices, personal care products, and lighting. With over 3,000 employees and advanced manufacturing facilities located in Shenzhen and Huizhou of China, Highpower serves its customers around the world through continuous research and development as well as its commitment to quality products. As a company, Highpower International is committed to clean technology, not only in the products it makes, but also in the processes adopted to produce 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. Such risks and uncertainties include, without limitation, the current economic downturn and uncertainty in the European economy adversely affecting demand for the Company's products; fluctuations in the cost of raw materials; the Company's dependence on, or inability to attract additional, major customers for a significant portion of its net sales; the Company's ability to increase manufacturing capabilities to satisfy orders from new customers; the Company's ability to maintain increased margins; changes in the laws of the People's Republic of China that affect the Company's operations; the devaluation of the U.S. Dollar relative to the Renminbi; the Company's dependence on the growth in demand for portable electronic devices and the success of manufacturers of the end applications that use the Company's battery products; the Company's responsiveness to competitive market conditions; the Company's ability to successfully manufacture its battery products in the time frame and amounts expected; the market acceptance of the Company's lithium products; the Company's ability to successfully develop products for and penetrate the electric transportation market; the Company's ability to continue R&D development to keep up with technological changes; the Company's ability to successfully transition its New Materials business into a full scale materials recycling business; changes in foreign, political, social, business and economic conditions that affect the Company's production capabilities or demand for our products; and various other matters, many of which are beyond the Company's control. For a more detailed 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 including the Company's Form 10-K for the fiscal year ended December 31, 2011, its Form 10-Q reports for the quarters ended March 31, 2012 and June 30, 2012 filed with the SEC and its Form 10-Q report for the quarter ended September 30, 2012 to be filed 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. Any forward-looking statement made by us in this press release is based only on information currently available to the Company and speaks only as of the date on which it is made. The Company has no obligation to update the forward-looking information contained in this press release.
- financial tables to follow -
Financial Profiles, Inc.
Tricia Ross
+1-916-939-7285
Themen in dieser Pressemitteilung:
Unternehmensinformation / Kurzprofil:
Datum: 13.11.2012 - 12:00 Uhr
Sprache: Deutsch
News-ID 202547
Anzahl Zeichen: 0
contact information:
Town:
NEW YORK, NY and SHENZHEN, CHINA
Kategorie:
Alternative Energy
Diese Pressemitteilung wurde bisher 107 mal aufgerufen.
Die Pressemitteilung mit dem Titel:
"Highpower International, Inc. Reports Third Quarter 2012 Financial Results"
steht unter der journalistisch-redaktionellen Verantwortung von
Highpower International (Nachricht senden)
Beachten Sie bitte die weiteren Informationen zum Haftungsauschluß (gemäß TMG - TeleMedianGesetz) und dem Datenschutz (gemäß der DSGVO).
