Shiner International, Inc. AnnouncesResults for the Second Quarter of 2012

Aug 15, 2012, 12:18 ET from Shiner International, Inc.

HAIKOU, China, Aug. 15, 2012 /PRNewswire-Asia/ -- Shiner International, Inc. (Nasdaq: 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 June 30, 2012.

(Logo: http://photos.prnewswire.com/prnh/20111122/CN11164LOGO)

Total revenue for the three months ended June 30, 2012 were $16.4 million, a decrease of $1.5 million (or 8.2%) compared to total revenue of $17.9 million for the same quarter ended June 30, 2011. The decrease was primarily attributable to decreased revenues generated from coated film and color printing, which was partially offset by increase in revenues generated from BOPP tobacco, advanced film and water-based latex. For the three months ended June 30, 2012, revenue from coated film revenue decreased $3.1 million (or 45.3%) to $3.8 million from $6.9 million for the corresponding period in 2011, and sales from color printing decreased $1.1 million (or 73.8%) to $0.4 million from $1.5 million for the corresponding period in 2011.  For the three months ended June 30, 2012, revenue from BOPP tobacco increased $3.0 million (or 38.5%) to $10.6 million from $7.6 million for the corresponding period in 2011; revenue from advanced film decreased $0.3 million (or 18.2%) to $1.4 million from $1.7 million for the corresponding period in 2011; and revenue from water-based latex increased $0.1 million (or 60.9%) to $0.3 million from $0.2 million for the corresponding period in 2011.

Shiner's gross profit for the three months ended June 30, 2012 was $0.5 million, the gross profit margin decreased to 3.0% compared to 14.1% of total revenue for the corresponding period in 2011. The decrease in gross profit margin was primarily a consequence of increased labor costs and depreciation of the new property.

Operating loss for the three months ended June 30, 2012 was $(1.5) million compared to operating income of $1.3 million for the same quarter ended June 30, 2011. Selling, general and administrative ("SG&A") expenses increased by 61.6%, or $0.7 million, to $2 million for 2012 compared to $1.2 million for the corresponding period in 2011. The increase in "SG&A" expenses was mainly due to a $0.2 million increase in R&D expense and a $0.2 million increase in for marketing expense.

Shiner reported net income of $(1.4) million for the three months ended June 30, 2012, compared to $0.8 million in the same period of 2011. Earnings per share for the quarter were $(0.05), compared to earnings of $0.03 per share for the same period of 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: rong.gong@shinerinc.com; ir@shinerinc.com Web: http://www.shinerinc.com

 

SHINER INTERNATIONAL, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

June 30,

December 31,

2012

2011

(unaudited)

ASSETS

CURRENT ASSETS:

 Cash & equivalents 

$

3,435,300

$

2,831,808

 Restricted cash 

214,645

57,613

 Accounts receivable, net of allowance for doubtful 

   accounts of $216,097 and $121,017 at 2012 and 2011 

7,518,337

7,744,377

 Advances to suppliers 

12,123,083

10,042,214

 Notes receivable 

23,760

7,865

 Inventory, net 

12,601,434

10,252,955

 Prepaid expenses & other current assets 

597,395

1,072,326

 Total current assets 

36,513,954

32,009,158

 Property and equipment, net 

35,287,561

27,836,253

 Construction in progress 

4,868,557

12,037,154

 Advance for the purchase of equipment 

786,082

763,427

 Intangible assets, net 

2,966,848

3,063,646

 Goodwill 

2,037,492

2,023,342

 TOTAL ASSETS 

$

82,460,494

$

77,732,980

 LIABILITIES AND STOCKHOLDERS' EQUITY  

 CURRENT LIABILITIES: 

 Accounts payable 

$

3,227,289

$

5,133,835

 Other payables 

6,848,762

7,021,179

 Unearned revenue 

1,759,492

1,313,320

 Accrued payroll 

154,069

193,884

 Short-term loans 

17,676,554

10,684,625

 Total current liabilities 

29,666,166

24,346,843

 Long-term loans 

11,088,000

9,957,090

 Total Liabilities 

40,754,166

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 

14,334,424

14,332,392

 Treasury stock (61,845 shares) 

(58,036)

(58,036)

 Other comprehensive income 

5,721,604

5,426,393

 Statutory reserve 

3,301,528

3,523,273

 Retained earnings 

16,731,553

18,478,618

 Total Shiner stockholders' equity  

40,058,676

41,730,243

    Noncontrolling interest 

1,647,652

1,698,804

 Total equity  

41,706,328

43,429,047

 TOTAL LIABILITIES AND EQUITY 

$

82,460,494

$

77,732,980

 

 

SHINER INTERNATIONAL, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS AND OTHER COMPREHENSIVE INCOME (LOSS)

(unaudited)

Three Months Ended June 30,

2012

2011

Net Revenue

$

16,401,485

$

17,867,227

Cost of goods sold

15,913,476

15,347,733

Gross profit

488,009

2,519,494

Operating expenses

Selling

577,500

548,952

General and administrative

1,386,968

666,360

     Total operating expenses

1,964,468

1,215,312

Income (loss) from operations

(1,476,459)

1,304,182

Non-operating income (expense):

Other income, net

294,712

(122,778)

Interest income

9,565

2,191

Interest expense

(323,196)

(271,329)

Exchange (loss)

(3,775)

116,508

     Total non-operating income (expense)

(22,694)

(275,408)

Income (loss) before income tax

(1,499,153)

1,028,774

Income tax expense (benefit)

(63,222)

222,402

Net income (loss)

(1,435,931)

806,372

 Net loss attributed to noncontrolling interest

(21,641)

7,001

Net income (loss) attributed to Shiner

$

(1,414,290)

$

799,371

Comprehensive income (loss)

     Net income (loss)

$

(1,435,931)

$

806,372

     Foreign currency translation gain

28,762

476,031

Comprehensive income (loss)

$

(1,407,169)

$

1,282,403

Weighted average shares outstanding :

Basic

27,541,491

27,541,491

Diluted

27,541,491

27,541,491

Earnings (loss) per share attributed to Shiner common stockholders

Basic

$

(0.05)

$

0.03

Diluted

$

(0.05)

$

0.03

 

 

SHINER INTERNATIONAL, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(unaudited)

Six Months Ended June 30,

2012

2011

CASH FLOWS FROM OPERATING ACTIVITIES:

Net income (loss)

$

(2,031,837)

$

1,803,066

Adjustments to reconcile net income (loss) to net cash

used in operating activities:

Depreciation

1,654,126

1,151,187

Amortization

118,214

46,606

Stock compensation expense

2,032

1,390

Change in working capital components:

Accounts receivable

280,177

2,967,525

Inventory

(2,276,621)

(2,353,513)

Advances to suppliers

(2,010,504)

(5,942,213)

Other assets

475,505

165,556

VAT receivable

-

(1,547,708)

Accounts payable and accrued expenses

(1,942,069)

(186,329)

Unearned revenue

439,576

1,433,840

Other payables

(219,453)

1,409,669

Accrued payroll

(41,167)

2,460

Net cash used in operating activities

(5,552,021)

(1,048,464)

CASH FLOWS FROM INVESTING ACTIVITIES

Purchase of Shimmer Sun Ltd

-

(1,300,000)

Cash acquired in acquisition of Shimmer Sun Ltd

-

248,742

Issuance of notes receivable

(23,764)

-

Payment on note receivable

7,925

25,684

Payments for property and equipment

(1,675,316)

(8,830,790)

Payments for construction in progress

-

(4,002,547)

Increase in restricted cash

(156,619)

-

Net cash used in investing activities

(1,847,774)

(13,858,911)

CASH FLOWS FROM FINANCING ACTIVITIES:

Repayment of short-term loans

(11,655,944)

(6,880,500)

Proceeds from short-term loans

18,572,677

7,645,000

Proceeds from long-term loans

1,061,206

9,036,390

Net cash provided by financing activities

7,977,939

9,800,890

Effect of exchange rate changes on cash and cash equivalents

25,348

14,533

NET INCREASE (DECREASE) IN CASH AND EQUIVALENTS

603,492

(5,091,952)

CASH AND EQUIVALENTS, BEGINNING BALANCE

2,831,808

8,622,035

CASH AND EQUIVALENTS, ENDING BALANCE

$

3,435,300

$

3,530,083

SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:

Interest paid

$

546,020

$

397,998

Income taxes paid

$

7,608

$

439,962

 

SOURCE Shiner International, Inc.



RELATED LINKS

http://www.shinerinc.com