NEW YORK, Nov. 16 /PRNewswire-Asia-FirstCall/ -- American Oriental
Bioengineering, Inc. (NYSE:AOB), ("the Company" or "AOBO"), a
pharmaceutical company dedicated to improving health through the
development, manufacture and commercialization of a broad range of
prescription and over the counter ("OTC") products, today announced
financial results for the third quarter ended September 30, 2009.
Third Quarter 2009 Financial Performance Revenue in the third
quarter of 2009 increased 11.7% to $78.8 million from $70.6 million
in the third quarter of 2008, reflecting continued demand for the
Company's core pharmaceutical and nutraceutical products. Revenue
from pharmaceutical products increased 6.3% to $66.0 million from
$62.1 million in the third quarter of 2008. Revenue from
prescription pharmaceutical products increased 22.7% to $29.8
million during the third quarter of 2009, reflecting a year over
year increase in sales from prescription formulated Jinji capsule,
Boke and CCXA products, which offset declines in sales of
Shuanghuanglian Injection Powder ("SHL"). The overall increase in
sales was also supported by continuous marketing efforts, an
increase in new product offerings, as well as expansion of coverage
to previously unaddressed rural markets. OTC pharmaceutical
products generated $36.2 million in revenue during the third
quarter of 2009, in comparison to $37.8 million in the prior year's
period, primarily reflecting lower sales performance of Jinji
Yimucao, a drug included in China's Essential Drug list, as
distributors reduced orders in anticipation of pricing uncertainty
related to healthcare reform. Nutraceutical products generated
revenue of approximately $9.2 million in the third quarter of 2009,
up 8.7% from $8.5 million in the prior year period, reflecting
increased sales of new beverage products launched in the beginning
of 2009. The Company generated $3.6 million from its distribution
business in the third quarter of 2009. Gross profit in the third
quarter of 2009 was $44.1 million compared to $47.2 million in the
third quarter of 2008. Gross margin was 56.0%, compared to 66.8% in
the prior year period, reflecting continued revenue mix shift to
CCXA's generic product sales, increasing raw material prices and
lower margin distribution business from Nuo Hua. Operating income
in the third quarter of 2009 was $15.0 million compared to $21.6
million in the third quarter of 2008. Selling and marketing
expenses increased 23.2% to $12.2 million from $9.9 million in the
prior year period. The increase primarily reflects increased
marketing and promotional initiatives related to enhancing
prescription product sales. Advertising expense was $9.0 million in
the third quarter of 2009, compared to $9.9 million in the prior
year period, reflecting a greater focus on promotional activities
and direct sales efforts. General and administrative expenses
increased 37.7% to $6.5 million from $4.7 million in the prior year
period, primarily driven by expenses related to improving
production efficiency and testing equipment and technology upgrades
as a result of more stringent GMP manufacturing standards. Net
income attributable to controlling interest for the third quarter
of 2009 was $10.0 million, compared to $16.3 million in the prior
year period. Excluding $0.9 million of interest expense on
convertible securities and $0.2 million of amortized financing
costs related to the Company's outstanding convertible notes, the
Company's net income attributable to controlling interest was $11.2
million, or $0.13 per diluted share. In the third quarter of 2008,
net income per diluted share was approximately $0.21. Nine Months
Ended September 30, 2009 Financial Performance Revenue for the nine
months ended September 30, 2009 increased 16.5% to $196.1 million
from $168.4 million in the first nine months of 2008. During the
same time period, gross profit increased slightly by 0.5% to $114.2
million from $113.6 million in the first nine months of 2008.
Operating income in the first nine months of 2009 was $43.9 million
compared to $51.9 million in the first nine months of 2008. Net
income attributable to controlling interest for the first nine
months of 2009 was $29.7 million, compared to $39.2 million in the
prior year period. Excluding $3.8 million of interest expense on
convertible securities and $0.7 million of amortized financing
costs related to the Company's outstanding convertible notes, the
Company's net income attributable to controlling interest was $34.2
million, or $0.39 per diluted share. In the first nine months of
2008, net income per diluted share was approximately $0.50. Balance
Sheet As of September 30, 2009, the Company had $115.9 million in
cash and generated approximately $44.3 million of operating cash
flow during the first nine months of 2009. Mr. Tony Liu, Chairman
and Chief Executive Officer of American Oriental Bioengineering,
commented, "Despite the tough business environment we are currently
experiencing, we are pleased with our third quarter performance as
we continued to enhance our diversified product portfolio and
pursue further vertical integration. We are witnessing uncertainty
around product pricing related to healthcare reform, and this has
caused select disruption in purchasing patterns. Nonetheless, we
continue to actively monitor the regulatory landscape and we will
adapt our business strategy accordingly. For example, the potential
inclusion of our Jinji products in the upcoming national insurance
catalog, along with our marketing capabilities, extensive
distribution platform, diversified product offering and ongoing
rural expansion, should help us navigate the challenging sales
environment related to healthcare reform. We continue to drive
revenue growth and consistently generate cash despite the uncertain
regulatory environment, and we appreciate the hard work and
contributions by our entire team." Restatement of Certain
Historical Results During the review of its third quarter 2009
operating results, the Company identified historical accounting
errors in: (i) the calculation of stock based compensation, (ii)
the recognition of deferred tax liabilities of certain acquired
assets and (iii) the provision of deferred tax liabilities on
undistributed earnings of foreign subsidiaries. The accounting
errors have resulted in the misstatement of certain balance sheet
and income statement items and the cumulative net earnings since
2006. The errors did not result from any fraud or intentional
misconduct and the Company undertook a review to determine the
total amount of the errors and the accounting periods in which the
errors occurred. As a result, the Company chose to restate its
previously reported financial statements. The Company has restated
its consolidated balance sheets and the related consolidated
statements of income, statements of shareholders' equity and
statements of cash flows as of and for the years ended December 31,
2008, 2007 and 2006 as reported in its amended annual report on
Form 10K/A for the fiscal year ended December 31, 2008. The
restated financial information for each of the three interim
quarterly periods for 2008 and 2007 were also included in the
amended annual report on Form 10-K/A for the fiscal year ended
December 31, 2008. The effects of the restatement on selected
income statement line items for the years ended December 31, 2008
and 2007 are as follows: Increase/(Decrease) in income statement
line items 2008 2007 General and administrative $838,190 $466,954
Income before income tax (838,190) (466,954) Income tax (91,916)
(1,042,151) Net income attributable to common shareholders
(746,274) 575,197 Net income per common share attributable to
common shareholders - basic -- 0.01 Net income per common share
attributable to common shareholders - diluted $-- $0.01 The
cumulative effects of the restatement on selected balance sheet
line items as of December 31, 2008 and 2007 are as follows:
Increase/(Decrease) in balance sheet line items 2008 2007 Goodwill
$4,620,895 $4,620,895 Deferred tax assets -- 15,297 Deferred tax
liability - current (667,095) (109,733) Deferred tax liability -
non current 1,551,743 4,050,444 Accumulated other comprehensive
income 2,602,180 (346,670) Retained earnings (171,077) 575,197
Additional paid-in capital 1,305,144 466,954 Conference Call The
Company will hold a conference call at 8:00 am ET on Tuesday,
November 17, 2009 to discuss third quarter 2009 results. Listeners
may access the call by dialing 1-866-770-7051 or 1-617-213-8064 for
international callers, access code: 89648638. A webcast will also
be available through AOB's website at http://www.bioaobo.com/ . A
replay of the call will be available through November 24, 2009.
Listeners may access the replay by dialing 1-888-286-8010 or
1-617-801-6888 for international callers, access code: 58148119.
About American Oriental Bioengineering, Inc. American Oriental
Bioengineering, Inc. is a pharmaceutical company dedicated to
improving health through the development, manufacture and
commercialization of a broad range of prescription and over the
counter products. Statements made in this press release are
forward-looking and are made pursuant to the safe harbor provisions
of the Securities Litigation Reform Act of 1995. Such statements
involve risks and uncertainties that may cause actual results to
differ materially from those set forth in these statements. The
economic, competitive, governmental, technological and other
factors identified in the Company's filings with the Securities and
Exchange Commission, including the Form 10-K for the year ended
December 31, 2008, may cause actual results or events to differ
materially from those described in the forward looking statements
in this press release. The Company undertakes no obligation to
publicly update or revise any forward-looking statements, whether
because of new information, future events, or otherwise. American
Oriental Bioengineering, Inc. and Subsidiaries Condensed
Consolidated Statements of Income and Comprehensive Income
(Unaudited) THREE MONTHS ENDED NINE MONTHS ENDED SEPTEMBER 30,
SEPTEMBER 30, 2009 2008 2009 2008 As Restated As Restated REVENUES
$78,818,666 $70,593,949 196,117,893 $168,372,552 COST OF GOODS SOLD
34,687,505 23,402,407 81,942,766 54,808,490 GROSS PROFIT 44,131,161
47,191,542 114,175,127 113,564,062 Selling and marketing 12,245,746
9,938,877 26,853,377 22,656,477 Advertising 9,013,087 9,913,728
22,360,380 21,760,300 General and administrative 6,457,734
4,690,793 15,981,195 14,235,806 Depreciation and amortization
1,409,399 1,024,436 5,118,588 3,012,107 Total operating expenses
29,125,966 25,567,834 70,313,540 61,664,690 INCOME FROM OPERATIONS
15,005,195 21,623,708 43,861,587 51,899,372 EQUITY IN EARNINGS
(LOSS) FROM UNCONSOLIDATED ENTITIES (563,608) 49,417 (299,072)
(591,650) INTEREST INCOME (EXPENSE), NET (1,106,805) (1,143,013)
(4,306,143) (1,156,782) OTHER (EXPENSE), NET (49,165) 91,986
(164,103) (264,515) INCOME BEFORE INCOME TAXES 13,285,617
20,622,098 39,092,269 49,886,425 INCOME TAXES 3,257,771 4,339,045
9,463,093 10,655,299 NET INCOME 10,027,846 16,283,053 29,629,176
39,231,126 NON-CONTROLLING INTEREST (651) 0 118,866 0 NET INCOME
ATTRIBUTE TO CONTROLLING INTEREST 10,027,195 16,283,053 29,748,042
39,231,126 OTHER COMPREHENSIVE INCOME Foreign currency translation
gain, net of tax 142,118 646,405 655,400 15,743,396 OTHER
COMPREHENSIVE INCOME, NET OF TAX 142,118 646,405 655,400 15,743,396
COMPREHENSIVE INCOME $10,169,313 $16,929,458 30,403,442 $54,974,522
NET INCOME PER COMMON SHARE BASIC $0.13 $0.22 0.40 $0.51 DILUTED
$0.13 $0.21 0.39 $0.50 WEIGHTED AVERAGE NUMBER OF COMMON SHARES
OUTSTANDING BASIC 74,636,155 75,101,869 74,592,447 77,164,602
DILUTED 88,868,828 85,417,621 88,825,120 80,553,647 American
Oriental Bioengineering, Inc. and Subsidiaries Condensed
Consolidated Balance Sheets (Unaudited) September 30, December 31,
2009 2008 As Restated CURRENT ASSETS Cash and cash equivalents
$115,923,399 $70,636,510 Accounts receivable, net of reserve of
$512,013 and $226,330 at September 30 , 2009 and December 31, 2008,
respectively 37,961,967 36,982,167 Inventories, net of provision
for slow moving inventories 15,291,710 13,042,123 Advances to
suppliers 2,798,860 3,593,979 Notes receivable 122,300 708,076
Refundable deposit -- 6,396,996 Deferred tax assets 398,563 347,216
Other current assets 1,154,315 744,903 Total Current Assets
173,651,114 132,451,970 LONG-TERM ASSETS Property, plant and
equipment, net 96,085,233 98,154,443 Land use rights, net
154,233,322 148,988,870 Deposit for long-term assets -- 6,347,174
Construction in progress 26,645,307 25,385,835 Deferred tax assets
127,823 1,313,832 Other intangible assets, net 19,911,767
23,690,440 Goodwill 33,164,121 33,164,121 Investments in and
advances to equity investments 54,995,237 54,963,064 Unamortized
financing costs 3,519,766 4,215,983 Total Long-Term Assets
388,682,576 396,223,762 TOTAL ASSETS $562,333,690 $528,675,732
LIABILITIES AND SHAREHOLDERS' EQUITY September 30, December 31,
2009 2008 As Restated CURRENT LIABILITIES Accounts payable
$10,082,129 $12,287,887 Notes payables 4,084,893 3,262,877 Other
payables and accrued expenses 19,556,446 19,766,652 Taxes payable
1,108,783 420,671 Short-term bank loans 9,652,509 7,140,148 Current
portion of long-term bank loans 59,771 58,659 Other liabilities
2,334,788 2,253,440 Deferred tax liability 176,449 178,931 Total
Current Liabilities 47,055,768 45,369,265 LONG-TERM LIABILITIES
Long-term bank loans 759,597 804,521 Long-term notes payable --
269,908 Deferred tax liabilities 15,502,047 17,635,511 Unrecognized
tax benefits 1,903,342 Convertible Note 115,000,000 115,000,000
Total Long-Term Liabilities 133,164,986 133,709,940 TOTAL
LIABILITIES 180,220,754 179,079,205 EQUITY SHAREHOLDERS' EQUITY
Preferred stock, $0.001 par value; 2,000,000 shares authorized;
1,000,000 shares issued and outstanding at September 30 , 2009 and
December 31, 2008, respectively 1,000 1,000 Common stock, $0.001
par value; 150,000,000 shares authorized; 78,321,439 and 78,249,264
shares issued and outstanding at September 30, 2009 and December
31, 2008, respectively. 78,321 78,249 Common stock to be issued
291,000 376,335 Prepaid forward repurchase contract (29,998,616)
(29,998,616) Additional paid-in capital 199,363,784 197,046,688
Retained earnings (the restricted portion of retained earnings is
$19,924,918 at September 30 , 2009 and December 31, 2008,
respectively) 179,500,646 149,752,604 Accumulated other
comprehensive income 32,343,586 31,688,186 Total Shareholders'
Equity 381,579,721 348,944,446 NONCONTROLLING INTEREST 533,215
652,081 TOTAL EQUITY 382,112,936 349,596,527 TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY $562,333,690 $528,675,732 DATASOURCE: American
Oriental Bioengineering, Inc. CONTACT: Integrated Corporate
Relations, Inc., Ashley M. Ammon, +1-646- 277-1227 Web site:
http://www.bioaobo.com/
Copyright
American Oriental Bioengineering, Inc. (NYSE:AOB)
Historical Stock Chart
From Jun 2024 to Jul 2024
American Oriental Bioengineering, Inc. (NYSE:AOB)
Historical Stock Chart
From Jul 2023 to Jul 2024