Skystar Bio-Pharmaceutical Reports Fiscal Year 2012 Financial Results
Fiscal Year Revenue of $33.6 Million; Fiscal Year 2013 Revenue Growth Forecasted to Be 20% to 35% Above 2012 Level
(firmenpresse) - XI'AN, CHINA -- (Marketwired) -- 04/02/13 -- (NASDAQ: SKBI) a China-based manufacturer and distributor of veterinary medicines, vaccines, micro-organisms and feed additives, today announced full financial results for fiscal year ended December 31, 2012.
Revenues totaled $33.6 million, down 36% YoY
Veterinary vaccines totaled $3.6 million, up 53.1% YoY
Veterinary medicines totaled $10.7 million, down 68.4% YoY
Feed additives totaled $4.0 million, up 57.1% YoY
Micro-organism products totaled $15.4 million, up 8.5% YoY
Gross profit margin increased to 55% from 50% in the prior year
Net income decreased 54.5% year over year to $6.2 million or $0.83 per fully diluted share, as compared to $13.7 million or $1.90 per fully diluted share during the year ended December 31, 2011.
Improved cash balance to $11.3 million at the end of fiscal 2012
Mr. Weibing Lu, Skystar Bio-Pharmaceutical's chairman and chief executive officer, commented, "Skystar is very pleased to share its 2012 financial results with investors. Financially, Skystar successfully maintained its historically clean and stable balance sheet, in addition to finishing the year bottom line profitable. In addition, the Company generated net positive cash flow from operations, maintained liquidity, met both long and short term debt obligations in addition to increasing its cash position as compared to the beginning of fiscal 2012 and end of fiscal 2011.
"Not counting Skystar's veterinary medication manufacturing plant in Huxian, whose production line was closed for three quarters of the 2012 fiscal year, due to the Ministry of Agriculture's mandatory GMP re-certification schedule. Skystar was able to ramp sales across all of it production lines. And through the shifting of Skystar's sales and marketing efforts; Vaccine revenues grew 53% year over year; Probiotics grew by 9% year over year; and Feed additives revenues grew 57% year over year. Skystar was not only able to maintain sales of these production lines in 2012 but increase selling despite China's economic slowdown.
"Operationally, Skystar's management trimmed operating expenses in 2012 in accordance with the shutdown of its Huxian veterinary medication facility, where unfortunately revenues were down 68% from the prior fiscal year due to its aforementioned closing prior to GMP inspection. Likewise R&D projects for fiscal 2012 were also strategically reduced in order to maintain profitability without shying away from planned research and from the Company's mission to stay ahead of trends and demands in China's animal husbandry space. As a result Skystar moderately increased its customer base to 3,964 customers consisting of independent distributors, franchise distributors and direct customers.
"With respect to Skystar's manufacturing facilities; the Company currently has four manufacturing facilities:
"The has two facilities. The Micro-Organism facility is run in cooperation with experts from Microbiology Institute of Shaanxi Province, and Northwest Agro-Forestry Sci-tech University. The Second facility manufactures feed additives. Both facilities are operational and we look forward to solid revenue contribution in 2013 with respect to this product line.
"The has two production lines for vaccines and medications. In the third quarter of fiscal of fiscal 2012, China's MOA inspected and renewed the GMP certificate for this facility's veterinary medication facility which will be valid for a period of five years. We look forward to the revenue contribution of this production facility and are eager to ramp sales of this product line. Additionally, the new vaccine facility was also inspected and received stage one GMP approval. Under China's revised inspection process, the vaccine production line is still waiting to undergo stage two of the GMP certification. Management expects the GMP certification process of the vaccine facility to be completed by the third quarter of 2013.
"The , plant is GMP certified to produce veterinary medicines including aqua culture medicines and is fully operational.
"Skystar's probiotics plant in was acquired in September 2011 for roughly $8 million. As of the end of 2012, the facility renovation for this facility is complete; inspection was completed and accepted in March 2013. However, the equipment installation, tooling and testing is not fully completed; thus this facility is not operational at this point," said Mr. Lu.
In-line with revised guidance, Skystar reported full fiscal 2012 year of $33.6 million, a 36% decrease compared to the $52.8 million in revenues reported for the full fiscal 2011 year. Gross profit for the full fiscal 2012 year was $18.5 million, or 55% of revenues.
decreased 54.5% year over year to $6.2 million or $0.83 per fully diluted share, as compared to $13.7 million or $1.90 per fully diluted share in the year ago period.
Skystar's which consists of raw materials, direct labor, and manufacturing overhead for our four product lines, was $15.1 million for fiscal 2012 as compared to $26.6 million for the year ago period. This decrease was mainly due to the decrease in corresponding sales as a result of temporary suspension of production at the Huxian facility for the first three quarters of 2012.
costs totaled $2.2 million for the fiscal 2012 as compared to $2.8 million for the year ago period, a decrease of $0.6 million or 23.5%. The decrease was due to a strategic reduction in R&D projects for the fiscal year.
totaled $3.0 million for fiscal 2012 as compared to $4.0 million in the year ago period, a decrease of $1.0 million or 25.2%. This decrease is mainly due to decreased sales commission expenses as the Huxian veterinary medication facility was temporarily closed for the first three quarters of 2012 resulting in a significant decrease in veterinary medication sales in 2012. Shipping and handling costs and travelling expenses also decreased as less veterinary medicine sales activities during the year.
$4.7 million for the year ended December 31, 2012 as compared to $4.1 million for the year ended December 31, 2011, an increase of $0.6 million or 15.8%. The increase was mainly due to the stock based compensation expense of $1.0 million for stock grants on May 4, 2012 to the Company's employees and members of the Board of Directors, all of which grants were made pursuant to the terms and provisions of the 2010 Stock Incentive Plan.
as of December 31, 2012, Skystar had approximately $11.3 million in cash, current assets of $71.6 million and current liabilities of $17.2 million, which resulted in a net working capital of $54.4 million.
Mr. Lu concluded, "Fiscal 2013 will be an exciting year for Skystar, following the successful application of GMP certifications for our various manufacturing facilities, the Company is another step closer to realizing the full revenue potential of its manufacturing facilities. Skystar currently anticipates delivering a 20% to 35% year over year increase in top line revenue for fiscal 2013. The expected revenue range is $40 million to $45 million with gross margin of roughly 50% for fiscal 2013. This view takes into consideration revenues from facilities that have come online following GMP recertification," concluded Mr. Lu.
The Company will host a conference call on Tuesday, April 2, 2013 to discuss its financial results for the year ended December 31, 2012. Skystar's conference call will begin promptly at 7:45 a.m. EST to review fiscal year 2012 financial and operational performance. Mr. Weibing Lu, Skystar's chairman and chief executive officer, will host the call, which will be webcast live.
The webcast will be made available on the investor relations section of the Skystar corporate website at or .
Telephone access to the conference call will be available in North America by dialing +1 (877) 407-8031 or internationally by dialing +1 (201) 689-8031.
An audio replay of the conference call will be available approximately two hours following the conclusion of the call and for the following 30 day period. To access the replay in North America, dial +1 (877) 660-6853 or, when calling internationally, dial +1 (201) 612-7415, referencing conference ID # 411773.
To be added to the Company's email distribution for future news releases, please send your request to .
Skystar is a China-based developer and distributor of veterinary healthcare and medical care products. Skystar has four product lines (veterinary medicines, probiotics, vaccines and feed additives) and over 275 products. Skystar has formed strategic sales distribution networks covering 29 provinces throughout China. For additional information, please visit .
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: Certain of the statements made in the press release constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. 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. Such statements typically involve risks and uncertainties and may include financial projections or information regarding the progress of new product development. Actual results could differ materially from the expectations reflected in such forward-looking statements as a result of a variety of factors, including the risks associated with the effect of changing economic conditions in The People's Republic of China, variations in cash flow, reliance on collaborative retail partners and on new product development, variations in new product development, risks associated with rapid technological change, and the potential of introduced or undetected flaws and defects in products, and other risk factors detailed in reports filed with the Securities and Exchange Commission from time to time.
Scott Cramer
Director - Corporate Development & U.S. Representative
(407) 645-4433
Christopher Chu
(646) 284-9426
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Datum: 02.04.2013 - 09:00 Uhr
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