Skystar Bio-Pharmaceutical Reports Third Quarter 2013 Results
Revenues Increase 79% YoY to $16.0 Million; Net Income of $3.7 Million; $0.49 Diluted EPS
(firmenpresse) - XI'AN, CHINA -- (Marketwired) -- 11/15/13 -- (NASDAQ: SKBI) a China-based manufacturer and distributor of veterinary medicine, vaccines, micro-organisms and feed additives, today reported unaudited third quarter fiscal year 2013 earnings, for the period ended September 30, 2013.
Revenues increase 79% YoY to $16.0 million
Micro-organism products totaled $4.9 million, up 0.5% YoY
Veterinary medicine totaled $9.8 million, an increase of 451.8% YoY
Feed additives totaled $610,082 decreasing 48.7% YoY
Veterinary vaccines totaled $607,208, a decrease of 41.6% YoY
Gross margin of 51.4% for the third quarter of fiscal 2013 as compared to 58.9% in the year ago period
Net income of $3.7 million or $0.49 per fully diluted share, compared with net income of $2.7 million or $0.36 per fully diluted share in the year ago period
Fiscal 2013 guidance reiterated at $40 million to $45 million
First nine months 2013 revenue increases 27.7% YoY to $32.9 million
Gross margin of 51.0% for the first nine months of fiscal 2013 as compared to 57.0% in the year ago period
Net income of $8.2 million or $1.08 per fully diluted share, compared with net income of $6.3 million or $0.85 per fully diluted share in the year ago period
Mr. Weibing Lu, Skystar Bio-Pharmaceutical's Chairman and Chief Executive Officer, commented, "Skystar delivered strong top line and bottom line performance for the period as a result of Skystar's operational strategy. Adjustments to operations include redirecting sales and marketing efforts to create awareness and demand for newly available products as manufacturing capabilities come online. Additionally, since completing the approval process and obtaining production permits for Skystar's veterinary medication lines earlier in 2013, the MOA has granted roughly 45% of Skystar's submitted permits to manufacture individual veterinary medications. Skystar is also making significant progress in completing the complex two stage GMP inspection process that the Ministry of Agriculture (MOA) requires for to operate the Company's newly completed and modern Vaccine manufacturing facility."
"With this in mind, Skystar's current results reflect a significant ramp up of production and sales of its veterinary medications line since earning GMP approval for its production facilities in Huxian and Jingzhou, China. In order to ensure a successful re-launch of Skystar's high growth veterinary medication business, sales resources have been shifted away from probiotics, feed additives and vaccines and onto medications. This operational strategy has played an important role in Skystar's strong veterinary medication sales as revenues from this product line increased a dramatic 452% year over year through Skystar's seasonally strongest quarter. Currently, both veterinary medication manufacturing facilities are operating at near or above 50% capacity."
"With regard to Skystar's veterinary vaccine line, as explained in the Company's Quarterly Report on Form 10-Q, China's Ministry of Agriculture is currently in the process of completing Stage 2 of the GMP inspection of the newly built veterinary vaccine manufacturing facility in Huxian, China. The Company expects Stage 2 of the GMP inspection to be completed by the fourth quarter of 2013. The GMP certification process will be completed shortly thereafter. The newly built and largely automated vaccine manufacturing facility will allow the Company to mass produce vaccines without sacrificing quality control."
"Moving forward into fiscal 2014, the operational changes occurring over the next several quarters are expected to increase Skystar's ability to generate revenues and profits. As more manufacturing capabilities come online, the Company will initiate the appropriate sales and marketing efforts to support its growing number of products and production base."
"It has always been management's mission to grow revenues without sacrificing profitability. Since Skystar's listing on NASDAQ, the Company has been historically profitable to date and plans to continue that mission in the quarters ahead," concluded Mr. Lu.
For the three months ended September 30, 2013, we had revenues of $15,992,408 as compared to revenues of $8,933,005 for the three months ended September 30, 2012, an increase of $7,059,403 or 79.0%. We generated revenue from sales of four product lines: veterinary medications, micro-organism, feed additives and vaccines. Third Quarter Fiscal 2013 revenue breakdown by product line is as follows:
Micro-organism: $4,946,687
Veterinary medications: $9,828,431
Feed Additives: $610,082
Vaccines: $607,208
Cost of revenue, which consists of raw materials, direct labor, and manufacturing overhead for our four product lines, was $7,778,691 for the three months ended September 30, 2013, as compared to $3,670,230 for the three months ended in the year ago period, an increase of 111.9% or $4,108,461.
Gross profit, was $8,213,717 for the three months ended September 30, 2013, a 56.1% year over year increase as compared to $5,262,775 for the three months ended September 30, 2012. Gross margin for the period was 51% due to higher costs in manufacturing veterinary medications.
Operating Expenses
Research and development costs totaled $324,353 for the three months ended September 30, 2013as compared to $198,838 for the year ago period; this was an 63% increase in R&D expense due to increased efforts to develop in demand products.
Selling expenses totaled $1,266,444 for the three months ended September 30, 2013 as compared to $692,009 for the three months ended September 30, 2012, an increase of $574,435 or 83.0%. This increase was mainly due to the increase of sales commission and shipping and handling costs as the result of significantly increased veterinary medication sales during the third quarter.
General and administrative expenses totaled $1,885,219 for the three months ended September 30, 2013 as compared to $730,539 for the three months ended September 30, 2012, an increase of $1,154,680 or 158.1%. The increased G&A expense was mainly due to the additional allowance for doubtful accounts of $976,894 accrued during the third quarter for our increased accounts receivable balance partially because of our high sales results and the favorable payment terms we have given customers during the quarter.
As of September 30, 2013, we had unrestricted cash of $4.5 million. Our total current assets were $88.6 million, and our total current liabilities were $28.4 million, which resulted in a net working capital of $60.2 million.
We currently reiterate our fiscal 2013 guidance to be in the range of $40 million to $45 million for the full year.
The Company will host a conference call Friday, November 15, 2013 to discuss its third quarter financial results. Skystar's conference call will begin promptly at 7:45 a.m. ET. 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 at: .
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 # 13572867. Alternatively you can listen to the replay online at .
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, micro-organisms, vaccines and feed additives) and over 284 products. Skystar has formed strategic sales distribution networks covering 29 provinces throughout China. For additional information, please visit .
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 Company's ability to receive timely certification and related government approvals, the Company's expectations relating to completion of the GMP process, adding and launching additional facilities, and ramping up sales efforts, 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 and U.S. Representative
(407) 645-4433
Christopher Chu
(646) 284-9426
Themen in dieser Pressemitteilung:
Unternehmensinformation / Kurzprofil:
Datum: 15.11.2013 - 10:00 Uhr
Sprache: Deutsch
News-ID 317011
Anzahl Zeichen: 0
contact information:
Town:
XI'AN, CHINA
Kategorie:
Livestock
Diese Pressemitteilung wurde bisher 288 mal aufgerufen.
Die Pressemitteilung mit dem Titel:
"Skystar Bio-Pharmaceutical Reports Third Quarter 2013 Results"
steht unter der journalistisch-redaktionellen Verantwortung von
Skystar Bio-Pharmaceuticals (Nachricht senden)
Beachten Sie bitte die weiteren Informationen zum Haftungsauschluß (gemäß TMG - TeleMedianGesetz) und dem Datenschutz (gemäß der DSGVO).
