Asia Bio-Chem Group Corp. Announces Third Quarter Financial Results
/NOT FOR DISTRIBUTION TO U.S. NEWS SERVICES OR FOR DISSEMINATION IN THE UNITED STATES/ TSX Venture: ABC
In recognition for the work undertaken in completion of the Daqing plant, the Company further announces that it has granted stock options to certain members of management of the Company.
Interim Financial Results Highlights - Asia Bio-Chem achieved it's third consecutive quarter of improvement in gross margin and growth in cash flow. In the third quarter gross margin improved to 16.7% while EBITDA, excluding the (non-cash) stock-based compensation expense, improved by 14% over the second quarter to $2.3 million. - The Company successfully completed the Daqing plant construction, on budget and on schedule and began production in October 2009. Up to September 30, 2009, the Company has invested approximately $80.0 million on Daqing project, which, at full capacity, will triple the Company's processing capacity to 900,000 tonnes of corn per year - During the third quarter of 2009, the Company received the second drawdown of RMB 20 million ($3.2 million) under its RMB 100 million loan facility with Zhaoyuan County Government. Subsequent to September 30, 2009, the Company received the third drawdown of RMB 20 million ($3.2 million). - As at September 30, 2009, the Company had $4.0 million in cash and $25.4 million in government and bank debt outstanding.
Asia Bio-Chem, today reported third quarter sales of
Gross profit during the third quarter was the highest achieved during fiscal 2009 at
"We are pleased to see that market conditions have begun to improve particularly for our starch product following a difficult first half. With the completion of our new Daqing facility, our Company is well positioned to take advantage of this improvement in demand." stated
Improved gross profit combined with lower distribution expenses and stock-based compensation charges resulted in the highest level of income from operations in 12 months at
SUMMARY FINANCIAL STATEMENTS in thousands of Canadian dollars except 3 Months to 3 Months to shares, per share and percentage data 9/30/09 9/30/08 ------------- ------------- Sales 23,202 21,516 Gross profit 3,877 4,438 Gross margin (% of Sales) 16.7% 20.6% Operating expenses 2,456 2,343 Income from operations 1,421 2,095 Other income (expense) (327) 129 Income taxes 265 278 Net income 828 1,946 EBITDA 1,688 2,470 EBITDA before Stock-based compensation 2,288 3,702 Earnings per share Basic and diluted 0.01 $0.03 Weighted average number of shares Basic and diluted 76,777,025 76,777,025 Balance Sheet Highlights As at As at 9/30/09 12/31/08 ------------- ------------- Cash 4,001 10,489 Working Capital 305 5,154 Total assets 128,764 113,144 Current Ratio 1.01:1 1.28:1
Compared with the previous two quarters, improved gross margin, lower stock-based compensation expense and lower distribution expenses caused net income to increase to
During the third quarter, the Company's cash position was
Daqing Project
As of late October, the Daqing plant construction is complete and the facility is ramping up production. By the end of the current year the Daqing facility is expected to be producing in excess of 90% capacity representing annual processing capacity of over 810,000 tonnes of corn.
Long term financing which has been incurred in construction of the Daqing project currently represents RMB 160 million (
Option Grants
In recognition for the work undertaken in completion of the Daqing plant, the Company further announces that it has granted an aggregate of 800,000 stock options pursuant to its Amended and Restated 2009 Stock Option Plan to certain members of management of the Company. The options are exercisable for 5 years at an exercise price equal to the closing price of the shares as of the date of this announcement and shall vest over a 3 year period.
Conference Call
Asia Bio-Chem will be hosting a conference call to discuss the third quarter results at
Dial in number: 1-800-594-3790 or 416-644-3423 Taped replay: 1-877-289-8525 or 416-640-1917 Pass Code: 4181683 followed by the number sign (available until November 30th , 2009)
About Asia Bio-Chem Group Corp.
Asia Bio-Chem Group, through its wholly-owned subsidiaries in the Peoples Republic of
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.
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For further information: For further information: For Corporate Information: Asia Bio-Chem Group Corp., Suite 2105 - 130 Adelaide Street West, Toronto, Ontario, M5H 3P5, Attention: Robert Wilson, Tel: (416) 603-7500
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