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Deer Consumer Products, Inc. Announces 3rd Quarter Financial Results - Net Income Up 168% to $4.12 Million, Affirms 2009 Earnings Guidance
- Revenues of $26.54 million, an increase of 130% from Q3 in 2008
- Net income of $4.12 million, an increase of 168% from Q3 in 2008, fully diluted EPS $0.18
- Affirms 2009 revenue guidance of $81 million and net income of $10.5 million
NEW YORK, Nov. 5 /PRNewswire-FirstCall/ -- Deer Consumer Products, Inc. (Nasdaq: DEER) (Website: www.deerinc.com), a leading manufacturer of home and kitchen electronics marketing to both global and Chinese domestic consumers, is pleased to announce financial results for the 3rd quarter ended September 30, 2009.
3rd Quarter Revenues
- Revenues of $26.54 million, up 130%, compared to $11.54 million in Q3 2008
- Revenue increase was due to expansion of sales in the U.S. market and putting significant efforts into increasing our sales to the Chinese and European markets
3rd Quarter Net Income
- Net income of $4.12 million, up 168%, compared to $1.54 million in Q3 2008
Affirms 2009 Sales and Earnings Guidance
DEER affirms 2009 financial guidance of approximately $81 million in revenues and approximately $10.5 million in net income for our fiscal year ending December 31, 2009. In 2008, DEER reported US GAAP audited revenues of $43.8 million, net income of $3.4 million.
Management Comments
Bill He, Deer's Chairman & CEO commented, "During the 3rd quarter, we experienced sales and earnings growth both in the Chinese domestic and international markets. Our global customer base, as well as Chinese domestic sales channels, responded positively to the improved global economic environment which continued to strengthen our market position. As a result, we are comfortable with our 2009 earnings guidance."
Mr. He continued: "In the most recently concluded Guang Dong Fair which is China's largest product show, we noticed significant global and domestic customer demand and interest towards our products. Deer is well positioned to further benefit from any global economic recovery."
About Deer Consumer Products, Inc.
Deer Consumer Products, Inc. (www.deerinc.com) is a NASDAQ Global Market listed U.S. public company headquartered in China. Supported by more than 103 patents and approximately 1,900 full time and part time employees, Deer is a market leader in the design, manufacture and sale of home and kitchen electric appliances marketing to the vast Chinese domestic consumer markets as well as customers in more than 40 countries worldwide. Deer's product lines include blenders, juicers, pressure cookers and other home appliances designed to improve home lifestyles in today's fast-paced society. With more than 100 global and domestic clients/branded products including Black & Decker, Ariete, Disney, Toastmaster, Magic Bullet, Back to Basics, and Wal-Mart, Deer has enjoyed rapid sales and earnings growth in the recent years.
Safe Harbor Statement
All statements in this press release that are not historical are forward-looking statements made pursuant to the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. There can be no assurance that actual results will not differ from the company's expectations. You are cautioned not to place undue reliance on any forward-looking statements in this press release as they reflect Deer's current expectations with respect to future events and are subject to risks and uncertainties that may cause actual results to differ materially from those contemplated. Potential risks and uncertainties include, but are not limited to, the risks described in Deer's filings with the Securities and Exchange Commission.
Contact Information:
Corporate Contact:
Helen Wang, Corporate Secretary
Deer Consumer Products, Inc.
Tel: 011-86-755-86028285
DEER CONSUMER PRODUCTS, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
September 30, December 31,
2009 2008
---- ----
(unaudited)
ASSETS
------
CURRENT ASSETS:
Cash and cash equivalents $17,833,183 $2,782,026
Restricted cash - 200,099
Accounts receivable, net 11,757,169 8,560,465
Advances to suppliers 3,767,328 5,015,479
Other receivables 199,871 489,286
Short term investments - 29,340
Due from related party - 331,267
Inventories 12,334,960 7,680,851
Other current assets - 13,342
- ------
Total current assets 45,892,511 25,102,155
PROPERTY AND EQUIPMENT, net 11,705,817 11,291,202
CONSTRUCTION IN PROGRESS 2,213,427 892,897
INTANGIBLE ASSETS, net 397,044 404,125
OTHER ASSETS 24,977 39,689
------ ------
TOTAL ASSETS $60,233,776 $37,730,068
=========== ===========
LIABILITIES AND STOCKHOLDERS' EQUITY
---------------------------------------
CURRENT LIABILITIES:
Accounts payable $9,687,669 $8,968,088
Other payables 1,676,026 760,632
Unearned revenue 3,258,033 3,305,966
Accrued payroll 1,028,714 168,282
Short term loans - 3,552,841
Advances from related party 80,070 274,805
Notes payable 4,881,576 3,155,348
Tax and welfare payable 1,635,005 1,533,013
--------- ---------
Total current liabilities 22,247,093 21,718,975
LONG-TERM LOAN 733,500 733,500
------- -------
TOTAL LIABILITIES 22,980,593 22,452,475
---------- ----------
STOCKHOLDERS' EQUITY:
Common Stock, $0.001 par value;
75,000,000 shares authorized;
25,576,094 and 19,652,226 shares
issued and outstanding
as of September 30, 2009 and December
31, 2008, respectively 25,576 19,652
Additional paid-in capital 24,809,942 9,329,371
Development funds 859,361 542,701
Statutory reserve 1,718,723 1,085,403
Other comprehensive income 2,340,270 2,345,698
Retained earnings 7,499,311 1,954,768
--------- ---------
Total stockholders' equity 37,253,183 15,277,593
---------- ----------
TOTAL LIABILITIES AND STOCKHOLDERS'
EQUITY $60,233,776 $37,730,068
=========== ===========
DEER CONSUMER PRODUCTS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME AND OTHER COMPREHENSIVE INCOME
Three Months Ended Nine Month Ended
September 30, September 30,
------------------ ----------------
2009 2008 2009 2008
---- ---- ---- ----
(unaudited) (unaudited) (unaudited) (unaudited)
Revenue $26,541,039 $11,542,215 $48,723,758 $32,045,142
Cost of Revenue 20,670,731 8,255,913 37,403,300 24,550,251
---------- --------- ---------- ----------
Gross profit 5,870,308 3,286,302 11,320,458 7,494,891
Operating
expenses
Selling expenses 960,013 672,714 1,871,266 1,882,130
General and
administrative
expenses 429,656 943,467 1,607,560 2,182,969
------- ------- --------- ---------
Total
operating
expenses 1,389,669 1,616,181 3,478,826 4,065,099
--------- --------- --------- ---------
Income from
operations 4,480,639 1,670,121 7,841,632 3,429,792
Non-
operating
income
(expense):
Financing costs (35,882) (1,926) (156,543) (48,361)
Interest income 63,698 1,693 66,354 8,548
Interest expense (14,292) (116,617) (118,984) (206,474)
Other income
(expense) 8,894 (1,698) 4,998 74,523
Realized
loss on
trading
securities - (296) - (34,684)
Foreign
exchange gain 288,461 530,510 207,958 876,436
------- ------- ----- -------
Total non-
operating
income
(expense) 310,879 411,666 3,783 669,988
Income
before
income
tax 4,791,518 2,081,787 7,845,415 4,099,780
Income tax 668,745 540,717 1,350,892 1,165,020
--------- --------- --------- ---------
Net income 4,122,773 1,541,070 6,494,523 2,934,760
Other
comprehensive
income
Foreign
currency
translation
gain (loss) 57,012 1,367,814 (5,428) 2,305,404
----- ---------- ----- ----------
Comprehensive
Income $ 4,179,785 $2,908,884 $ 6,489,095 $5,240,164
========= ========== ========= ==========
Weighted
average
shares
outstanding :
Basic 22,730,722 16,856,898 21,462,056 16,087,045
========== ========== ========== ==========
Diluted 23,266,256 16,856,898 21,908,490 16,087,045
========== ========== ========== ==========
Earnings
per share:
Basic $0.18 $0.09 $0.30 $0.18
===== ===== ===== =====
Diluted $0.18 $0.09 $0.30 $0.18
===== ===== ===== =====
DEER CONSUMER PRODUCTS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
Nine Month Ended
September 30,
----------------
2009 2008
---- ----
(unaudited) (unaudited)
CASH FLOWS FROM OPERATING
ACTIVITIES:
Net income $6,494,523 $2,934,760
Adjustments to reconcile
net income to net cash
provided by (used in)
operating activities:
Depreciation 1,072,586 857,170
Amortization 7,076 13,966
Loss on disposal of
fixed assets - 36,996
Realized loss on short
term investments - 34,684
(Increase) / decrease
in assets:
Accounts receivable (3,194,307) (4,015,909)
Other receivables 294,584 147,815
Inventories (4,650,620) (6,234,027)
Due from stockholder - 1,446,505
Due from related party 331,019 (3,799,263)
Advances to suppliers 1,247,216 (228,506)
Tax rebate receivable - - 347,731
Other assets 25,695 176,343
Increase / (decrease)
in current liabilities:
Accounts payable 719,113 4,946,373
Unearned revenue (47,897) 1,383,045
Other payables 901,444 (150,561)
Due to related party (194,529) (791,123)
Accrued payroll 859,787 113,427
Tax and welfare
payable 101,915 392,629
--------- ----------
Net cash provided by
(used in) operating
activities 3,967,605 (2,387,945)
--------- ----------
CASH FLOWS FROM
INVESTING ACTIVITIES
Acquisition of property
and equipment (1,486,891) (3,188,166)
Acquisition (disposal)
of intangible assets - 8,041
Construction in process (1,319,539) (617,887)
Changes in restricted
cash 199,948 (147,634)
Sale of short-term
investments 29,318 114,235
---------- ----------
Net cash used in
investing activities (2,577,164) (3,831,411)
---------- ----------
CASH FLOWS FROM FINANCING
ACTIVITIES:
Proceeds from issuance
of notes payable 1,724,933 2,969,781
Proceeds from issuance
of short term loans - 4,176,723
Proceeds from sale of
common stock 17,678,000 -
Offering costs paid (2,213,892) -
Proceeds from exercise
of warrants 22,387 -
Payment on notes short
term loans (3,550,177) -
Change in advance to
shareholder, net - (532,470)
Change in advance to
related party, net - 114,695
---------- ---------
Net cash provided by
financing activities 13,661,251 6,728,729
---------- ---------
Effect of exchange rate
changes on cash and cash
equivalents (535) 111,982
---- -------
NET DECREASE IN CASH & CASH
EQUIVALENTS 15,051,157 621,355
CASH & CASH EQUIVALENTS,
BEGINNING BALANCE 2,782,026 1,511,545
--------- ---------
CASH & CASH EQUIVALENTS,
ENDING BALANCE $17,833,183 $2,132,900
=========== ==========
SUPPLEMENTAL DISCLOSURE OF
CASH FLOW INFORMATION:
Interest paid $116,315 $113,356
======== ========
Income taxes paid $565,418 $112,743
======== ========
SOURCE Deer Consumer Products, Inc.
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