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
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
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:
Three Months Period
Ended September 30
Gross margin (% of Sales)
Income from operations
EBITDA before stock-based compensation
Earnings per share
Weighted average number of shares
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 |
Asia Packaging Group