Asia Packaging Group Inc Announces Second Quarter Financial Results and the Addition of New Production Lines

TSX Venture: APX

TORONTO, Nov. 29, 2011 /CNW/ - Asia Packaging Group Inc. (TSX Venture: APX) ("Asia Packaging" or the "Company") is pleased to announce its interim financial statements for the three-month period ending September 30, 2011.

Interim Financial Results
Highlights

  • Due to higher product prices experienced during the second quarter, the Company achieved 17.8% growth in revenues over the same period in 2010 to $11.5 million.
  • Gross profit achieved during the quarter was $2.9 million representing a 17.9% increase over the same period in 2010. Higher value products continued to support margins.
  • The Company achieved EBITDA before stock based compensation of $2.7 million during the second quarter representing a 14% improvement over the same period of last year.
  • Net income increased 7.8% for the period to $2.2 million compared with $2.0 million during the same period of 2010.
  • As at September 30, 2011, the Company had $10.4 million in cash and no debt.

New Production Lines

  • In September 2011 the Company put two new production lines into place.  Each of these new lines has a capacity to produce 200 tonnes of metalized polyester film per month.

"We are pleased to report that our new production lines at the Yichun facility are operating smoothly and contributing to revenues and earnings" stated Mr. Wenge Hong, President and CEO of Asia Packaging.

During the second quarter, revenues increased as the company experienced higher product prices particularly for the company's primary product, CPP film which increased in price by 20.2% during the quarter compared with the corresponding period in 2010.  This increase in CPP film pricing was sufficient to offset higher polypropylene prices which increased by 21% during the quarter compared with the same period in 2010.  Consequently, the Company maintained a stable gross margin compared with the same period of last year at 25.1%.

SUMMARY FINANCIAL STATEMENTS:

Canadian $ Three Months Period
Ended September 30
(Unaudited)
Change
  Q2 2012 Q2 2011
Revenues
Gross profit
Gross margin (% of Sales)
Operating expenses
Income from operations
Other income
Income taxes
Net income
EBITDA
EBITDA before stock-based compensation
Earnings per share
Basic
Diluted
Weighted average number of shares
Basic
Diluted
11,481,324
2,883,887
25.1%
377,031
2,506,856
     11,248
  340,724
2,177,380
    2,652,906
  2,744,406
 
    0.017
      0.016
 
127,862,900
133,427,900
9,746,121
2,446,190
25.1%
141,235
2,304,955
2,750
288,463
2,019,242
2,407,596
2,407,596
 
0.019
0.019
 
           106,300,000
106,300,000
17.8%
17.9%
0.1%
167.0%
8.8%
309.0%
18.1%
7.8%
10.2%
14.0%
 
 
 
 
 
 

Income from operations increased to $2.5 million during the quarter ended September 30, 2011 representing an 8.8% increase over the same period of 2010.  Net income also increased during the quarter to $2.18 million (1.7 cents per share) compared with $2.0 million during the corresponding period of 2010.  A larger number of shares outstanding however caused quarterly earnings per share for the quarter to decline to 1.7 cents compared with 1.9 cents during the same period of 2010.

New Production Lines
A portion of the proceeds from the Company's $8 million financing completed in April 2011 have been used to purchase $3.9 million in new equipment including two new packaging material machines which started production in September.  These machines represent new production capability for Asia Packaging in the area of metalized polyester film.  Each of these new production lines is capable of producing 200 tonnes of product per month.

About Asia Packaging Group Inc.
Asia Packaging Group, through its wholly-owned subsidiaries in the People's Republic of China ("PRC"), is in the business of manufacturing packaging products and services to the food and pharmaceutical industries in China.  The Company operates a 38,000 square meter plant located in Yichun City, Jiangxi Province in PRC.

This news release contains certain statements that may be deemed "forward looking statements". Forward looking statements are statements that are not historical facts and are generally, but not always, identified by the words "expects,", "plans", "anticipates", "believes", "intends", "estimates", "projects", "potential" and similar expressions, or that events or conditions "will", "would", "may", "could" or "should" occur. Although the Company believes the expectations expressed in such forward looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results may differ materially from those in forward looking statements. Forward looking statements are based on the beliefs, estimates and opinions of the Company's management on the date the statements are made. The Company undertakes no obligation to update these forward looking statements, except as required by law, in the event that management's beliefs, estimates or opinions, or other factors, should change.

 

SOURCE Asia Packaging Group Inc.

For further information:

For Corporate Information: 

Robert Wilson
Vice President
Asia Packaging Group
Tel: 416-666-4005
Email: ewccorp@me.com
 

 

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Asia Packaging Group Inc.

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