Shiner International Announces Third Quarter Fiscal 2012 Results

HAIKOU, China, Nov. 14, 2012 /PRNewswire/ -- Shiner International, Inc. (OTCQB: BEST) ("Shiner" or the "Company"), an emerging global supplier of packaging solutions for food, tobacco, and consumer products, today announced its financial results for the quarter ended September 30, 2012.

Revenues for the three months ended September 30, 2012 decreased $1.9 million (or 10.2%), to $16.7 million compared to $18.6 million for the corresponding period in 2011. The decrease was primarily attributable to decreased revenues from coated film, color printing, advanced film and water-based latex, which was partially offset by increase in revenues generated from BOPP tobacco. For the three months ended September 30, 2012, revenue from coated film revenue decreased $3.2 million (or 46.4%) to $3.7 million from $6.9 million for the corresponding period in 2011, and sales from color printing decreased $0.4 million (or 28.7%) to $1.0 million from $1.4 million for the corresponding period in 2011. For the three months ended September 30, 2012, revenue from BOPP tobacco increased $3.2 million (or 45.0%) to $10.3 million from $7.1 million for the corresponding period in 2011; revenue from advanced film decreased $1.4 million (or 46.0%) to $1.6 million from $3.0 million for the corresponding period in 2011; and revenue from water-based latex decreased $0.1 million (or 98.6%) to $0.01 million from $0.1 million for the corresponding period in 2011.

Shiner's gross profit for the three months ended September 30, 2012 was $1.4 million, a profit margin of 8.7%, a decrease of 2.7% from 11.4% for the corresponding period in 2011. The decrease in profit margin was primarily a consequence of an increase in labor costs and depreciation of new property.

Operating loss for the three months ended September 30, 2012 was $3.2 million, compared to operating income of $0.3 million for the corresponding quarter ended September 30, 2011. Selling, general and administrative expenses for the three months ended September 30, 2012 increased by 40.6%, or $0.7 million, to $2.5 million in 2012, compared to $1.8 million for the corresponding period in 2011. General and administrative expenses increased during the 2012 period due to a $0.3 million increase in research and development expenditures and a $0.7 million increase in bad debt allowance, as compared to 2011. There was also a $2.1 million increase in loss on sale and write off of assets during the 2012 period.

Shiner reported net loss of $3.5 million for the three months ended September 30, 2012, compared to a net income of $0.4 million in the corresponding period of 2011. Earnings per share for the quarter were ($0.13), compared to earnings of $0.01 per share for the corresponding period of 2011.

Nine Months Financial Results

Revenue for the first nine months of fiscal year 2012 decreased $1.9 million (or 3.6%), to $50.5 million, compared to $52.4 million in the corresponding period a year ago. Gross profit for the nine months ended September 30, 2012 was $4.1 million, a profit margin of 8.1%, a decrease of 5.3% from 13.4% for the corresponding period in 2011. Operating loss was $4.8 million, down from an operating income of $2.8 million in the first nine months of fiscal year 2011. The Company saw a net loss of $5.5 million for the nine months ended September 30, 2012, representing a decrease of $7.7 million (or 351.4%) from a net income of $2.2 million for the corresponding period in 2011. Fully diluted loss per share was ($0.20), compared to fully diluted income per share of $0.08 for the first nine months of fiscal year 2011.

Financial Condition

As of September 30, 2012, the Company had $3.6 million in cash and equivalents on hand, $11.1 million in long-term debt, and working capital of $6.9 million. Stockholders' equity stood at $36.5 million, compared to $41.7 million as of December 31, 2011. Net cash used in operating activities for the nine months ended September 30, 2012 was $1.2 million, an increase of $3.4 million, compared to net cash flow used by operating activities of $21,869 for the corresponding period in 2011.

About Shiner International, Inc.,

Shiner International, Inc. is engaged in the research and development, manufacture and sale of flexible packaging material and advanced film. Its products include coated packaging film, shrink-wrap film, common packaging film, anti-counterfeit laser holographic film and color-printed packaging materials. The Company's products are used by manufacturers in the food and consumer products industry to preserve the texture, flavor, hygiene, and convenience and safety of their products. The Company was founded in 1990 and is headquartered in Haikou, China. Approximately 80% of Shiner's current customers are located in China, with the remainder spanning Southeast Asia, Europe, the Middle East and North America. Shiner holds 20 patents on products and production equipment, and has an additional 9 patent applications pending. The Company's flexible packaging meets U.S. FDA requirements, as well as the requirements for food packaging sold in the EU. Shiner's product manufacturing process is certified under ISO 9001:2000. Additional information on Shiner is available at http://www.shinerinc.com.

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. You are cautioned not to place undue reliance on any forward-looking statements in this press release as they reflect Shiner International, Inc.'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 Shiner's filings with the Securities and Exchange Commission. The information contained in this press release is made as of the date of the press release, even if subsequently made available by Shiner on its website or otherwise

Contact: Cindy Gong
Tel: 86-898-6858 1104
Fax: 86-898-6858 1513
Email: ir@shinerinc.com
Web: http://www.shinerinc.com

 

- Financial Tables Follow -


SHINER INTERNATIONAL, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS






September 30,


December 31,





2012


2011





(unaudited)



ASSETS












CURRENT ASSETS:






 Cash & equivalents

$

3,592,817

$

2,831,808


 Restricted cash


641,475


57,613


 Accounts receivable, net of allowance for doubtful






   accounts of $792,893 and $121,017 at 2012 and 2011


6,229,266


7,744,377


 Advances to suppliers


10,852,070


10,042,214


 Notes receivable


249,023


7,865


 Inventory, net


11,172,322


10,252,955


 Prepaid expenses & other current assets


550,315


1,072,326










 Total current assets


33,287,288


32,009,158









 Property and equipment, net


31,187,080


27,836,253


 Construction in progress


5,302,166


12,037,154


 Advance for the purchase of equipment


788,971


763,427


 Intangible assets, net


2,902,230


3,063,646


 Goodwill


2,033,633


2,023,342


 TOTAL ASSETS

$

75,501,368

$

77,732,980








 LIABILITIES AND STOCKHOLDERS' EQUITY 












 CURRENT LIABILITIES:






 Accounts payable

$

4,621,683

$

5,133,835


 Other payables


7,156,681


7,021,179


 Unearned revenue


1,064,424


1,313,320


 Accrued payroll


142,944


193,884


 Short-term loans


13,366,416


10,684,625










 Total current liabilities


26,352,148


24,346,843


 Long-term loans


11,067,000


9,957,090



 Total Liabilities


37,419,148


34,303,933


 Commitments and contingencies





 EQUITY:






     Shiner stockholders' equity:






 Common stock, par value $0.001; 75,000,000 shares authorized, 






    27,603,336 shares issued and 27,541,491 shares outstanding


27,603


27,603


 Additional paid-in capital


14,335,440


14,332,392


 Treasury stock (61,845 shares)


(58,036)


(58,036)


 Other comprehensive income


5,648,859


5,426,393


 Statutory reserve


3,301,653


3,523,273


 Retained earnings


13,200,131


18,478,618



 Total Shiner stockholders' equity 


36,455,650


41,730,243

    Noncontrolling interest


1,626,570


1,698,804



 Total equity 


38,082,220


43,429,047


 TOTAL LIABILITIES AND EQUITY

$

75,501,368

$

77,732,980















 

SHINER INTERNATIONAL, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS AND OTHER COMPREHENSIVE INCOME (LOSS)

(unaudited)


















Three Months Ended September 30,


Nine Months Ended September 30,






2012


2011


2012


2011

























Net Revenue



$

16,706,608

$

18,611,849

$

50,478,117

$

52,385,921

Cost of goods sold




15,257,456


16,490,987


46,370,015


45,378,458

Gross profit




1,449,152


2,120,862


4,108,102


7,007,463













Operating expenses











Selling





619,959


688,448


1,851,990


1,682,076

General and administrative




1,899,924


1,103,239


4,933,369


2,486,638

Loss on sale and write off of assets



2,106,379


-


2,106,379


-

 Total operating




4,626,262


1,791,687


8,891,738


4,168,714

Income (loss) from operations




(3,177,110)


329,175


(4,783,636)


2,838,749













Non-operating income(expense):










Other income, net




86,140


545,417


279,669


617,250

Interest income




16,842


2,453


35,236


10,917

Interest expense




(470,722)


(275,395)


(1,082,587)


(689,675)

Exchange (loss)




(12,435)


1,283


(22,083)


61,996

Total non-operating income (expense)



(380,175)


273,758


(789,765)


488













Income (loss) before income tax



(3,557,285)


602,933


(5,573,401)


2,839,237

Income tax expense (benefit)




(8,038)


219,894


7,683


653,132













Net income (loss)




(3,549,247)


383,039


(5,581,084)


2,186,105













 Net loss attributed to noncontrolling interest



(17,950)


(27)


(80,977)


(1,336)













Net income (loss) attributed to Shiner


$

(3,531,297)

$

383,066

$

(5,500,107)

$

2,187,441













Comprehensive income (loss)











     Net income (loss)



$

(3,549,247)

$

383,039

$

(5,581,084)

$

2,186,105

     Foreign currency translation gain (loss)



(84,620)


440,458


222,466


1,143,003













Comprehensive income (loss)



$

(3,633,867)

$

823,497

$

(5,358,618)

$

3,329,108













Weighted average shares outstanding :











Basic




27,541,491


27,541,491


27,541,491


27,541,491


Diluted




27,541,491


27,541,491


27,541,491


27,541,491













Earnings (loss) per share attributed to Shiner common stockholders








Basic



$

(0.13)

$

0.01

$

(0.20)

$

0.08


Diluted



$

(0.13)

$

0.01

$

(0.20)

$

0.08

SHINER INTERNATIONAL, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(unaudited)








Nine Months Ended

September 30,








2012


2011

CASH FLOWS FROM OPERATING ACTIVITIES:







Net income (loss)



$

(5,581,084)

$

2,186,105


Adjustments to reconcile net income (loss) to net cash






provided by (used in) operating activities:








Depreciation




2,374,995


1,721,406



Amortization




177,221


54,460



Stock compensation expense



3,048


2,085



Loss on sale and write off of assets



2,106,379


-



Change in working capital components:









Accounts receivable



1,556,464


3,669,116




Inventory




(868,319)


(2,372,742)




Advances to suppliers



(759,743)


(7,106,058)




Other assets




522,937


(267,767)




VAT receivable





-




Accounts payable and accrued expenses



(538,765)


726,024




Unearned revenue



(253,282)


1,206,913




Other payables



101,551


206,121




Accrued payroll



(51,992)


(3,794)












Net cash provided by (used in) operating activities


(1,210,590)


21,869











CASH FLOWS FROM INVESTING ACTIVITIES








Purchase of Shimmer Sun Ltd



-


(3,200,000)



Cash acquired in acquisition of Shimmer Sun Ltd


-


248,743



Cash from the sale of assets



1,226,825


-



Issuance of notes receivable



(249,348)


-



Payment on note receivable



7,925


34,594



Payments for property and equipment



(2,138,400)


(9,034,984)



Payments for construction in progress



-


(5,040,177)



Increase in restricted cash



(584,308)


-












Net cash used in investing activities



(1,737,306)


(16,991,824)











CASH FLOWS FROM FINANCING ACTIVITIES:








Repayment of short-term loans



(20,432,635)


(7,020,000)



Proceeds from short-term loans



23,063,410


7,800,000



Proceeds from long-term loans



1,060,610


9,219,600












Net cash provided by financing activities



3,691,385


9,999,600











Effect of exchange rate changes on cash and cash equivalents


17,520


135,841

NET INCREASE (DECREASE) IN CASH AND EQUIVALENTS


761,009


(6,834,514)

CASH AND EQUIVALENTS, BEGINNING BALANCE


2,831,808


8,622,035











CASH AND EQUIVALENTS, ENDING BALANCE


$

3,592,817

$

1,787,521











SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:






Interest paid



$

897,520

$

623,826


Income taxes paid



$

7,604

$

621,980











 The accompanying notes are an integral part of these consolidated financial statements.

 

SOURCE Shiner International, Inc.



RELATED LINKS
http://www.shinerinc.com

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