Biostar Pharmaceuticals, Inc. Announces Its Full Year and Fourth Quarter 2014 Financial Results
Full Year 2014 Financial Highlights
- Net sales increased by $8.7 million, or 16.5%, year over year, from $52.7 million in 2013 to $61.4 million in 2014.
- Gross profit grew by approximately 17.9% from $25.7 million in 2013 to $30.3 million in 2014.
- Cash and cash equivalents was $1.7 million at December 31, 2014, an improvement as compared to December 31, 2013;
- Net income was $4.8 million; basic and diluted earnings per share was $0.33.
Fourth Quarter 2014 Financial Highlights
- Net sales in the fourth quarter of 2014 was $14.4 million as compared to $11.0 million during the same period in 2013, representing a $3.4 million, or 31.0% increase.
- Gross profit increased by $1.6 million during the quarter.
- Net income for the quarter was $2.7 million.
XIANYANG, China, April 15, 2015 /PRNewswire/ -- Biostar Pharmaceuticals, Inc. (BSPM) ("Biostar", "we" or the "Company"), a manufacturer and marketer of pharmaceutical and health supplements to treat a variety of diseases and ailments, headquartered in China, today announced its results of operations for the full year and the quarter ended December 31, 2014.
Mr. Ronghua Wang, Chairman and CEO of Biostar Pharmaceuticals, Inc. commented: "In 2014, we experienced double digit growth in both our top line and gross profit. We believe our positive results are the fruits of labor from our loyal and experienced team at Biostar. By hitting 16.5% growth in sales, we were able to achieve and exceed our internal sales targets. Despite certain write-offs and one off dispositions, we were able to achieve net profit margins of 7.89%. We believe the Company has returned to normal sustainable profit margins after weathering the storm in 2012 that adversely affected our entire industry. We do believe through market research and input from our customers, vendors, industry experts, we were able to adapt to the market by, among other things, developing and introducing several new products to the market. We also executed on a new sales strategy which included rolling out revised incentive compensation structure for our sales team and sales channels."
"In 2015, the Company will continually re-examine its product portfolio to focus on high margin products and expand its national sales footprint. The Company will look to grow sales for its products via e-commerce. Of course, the Company will not remain static with its core competency the research and development of new drugs. The Company also believes that economies of scale is vital to continue to improve its bottom line; accordingly, when the right opportunity presents itself, the Company will consider acquiring competitors to ramp up its production." In closing, Chairman Wang noted: "We will make every effort to make 2015 a banner year so that we can bring superior returns to all of our stakeholders."
*The Company's Consolidated Balance Sheets, Statement of Operations, and Cash Flows can be found at the end of this press release. Please also refer the Company's Annual Report on Form 10K filed with the U.S. Securities and Exchange Commission for further regarding the Company's results of operations and the potential risks of investing in the Company's common stock.
About Biostar Pharmaceuticals, Inc.
Biostar Pharmaceuticals, Inc., through its wholly owned subsidiary and controlled affiliate in China, develops, manufactures and markets pharmaceutical and health supplement products for a variety of diseases and conditions. The Company's most popular product is its Xin Aoxing Oleanolic Acid Capsule, an over-the-counter ("OTC") medicine for chronic hepatitis B, a disease affecting approximately 10% of the Chinese population. For more information please visit: http://www.biostarpharmaceuticals.com.
Safe Harbor Relating to the Forward-Looking Statements
Certain statements in this release concerning our future growth prospects are forward-looking statements, within the meaning of Section 27A of the U.S. Securities Act of 1933, as amended, and Section 21E of the U.S. Securities Exchange Act of 1934, as amended, which involve a number of risks and uncertainties that could cause actual results to differ materially from those in such forward-looking statements. The company uses words and phrases such as "guidance," "forecasted," "projects," "is expected," "remain confident," "will" and similar expressions to identify forward-looking statements in this press release, including forward-looking statements. Undue reliance should not be placed on forward-looking information. Forward-looking information is based on current expectations, estimates and projections that involve a number of risks, which could cause actual results to vary and in some instances to differ materially from those anticipated by Biostar and described in the forward-looking information contained in this news release. The risks and uncertainties relating to these statements include, but are not limited to, risks and uncertainties regarding the Company's ability to sustain its sales effort going forward, its ability to retain existing and retain new customers for its products, its ability to achieve the projected sales through the efforts of the call center, to complete the contemplated clinical trials and capitalize on such opportunities, the Company's ability to recover its sales and revenue for the gel capsule segment of its business, the state of consumer confidence and market demand or the Company's products, success of our investments, risks and uncertainties regarding fluctuations in earnings, our ability to sustain our previous levels of profitability including on account of our ability to manage growth, intense competition, wage increases in China, our ability to attract and retain highly skilled professionals, time and cost overruns on fixed-price, fixed-time frame contracts, client concentration, our ability to successfully complete and integrate potential acquisitions, withdrawal of governmental fiscal incentives, political instability and regional conflicts and legal restrictions on raising capital or acquiring companies outside China. Additional risks that could affect our future operating results are more fully described in our United States Securities and Exchange Commission filings including our most recent Annual Report on Form 10-K for the year ended December 31, 2014, and other subsequent filings. These filings are available at www.sec.gov. We may, from time to time, make additional written and oral forward-looking statements, including statements contained in our filings with the Securities and Exchange Commission and our reports to shareholders. We do not undertake to update any forward-looking statements that may be made from time to time by or on our behalf.
Investor Relations Contact
Please send questions or comments to:
Biostar Pharmaceuticals, Inc.
Investor Relations Coordinator
+86-29-3368-6638
[email protected]
http://www.biostarpharmaceuticals.com
| BIOSTAR PHARMACEUTICALS, INC. |
||||||||
| CONSOLIDATED BALANCE SHEETS |
||||||||
| AS OF DECEMBER 31, |
||||||||
| 2014 |
2013 |
|||||||
| ASSETS |
||||||||
| Current Assets |
||||||||
| Cash and cash equivalents |
$ |
1,685,154 |
$ |
80,072 |
||||
| Notes receivable |
- |
1,636,072 |
||||||
| Accounts receivable, net |
26,962,078 |
17,965,082 |
||||||
| Inventories |
673,989 |
830,311 |
||||||
| Deposits and other receivables |
4,471,992 |
5,282,574 |
||||||
| Income tax recoverable |
67,370 |
374,958 |
||||||
| Loan receivables |
9,772,464 |
9,816,433 |
||||||
| Total Current Assets |
43,633,047 |
35,985,502 |
||||||
| Non-current Assets |
||||||||
| Deposits |
8,795,218 |
3,926,573 |
||||||
| Deferred tax assets |
7,065,523 |
2,789,175 |
||||||
| Property and equipment, net |
8,483,113 |
7,728,700 |
||||||
| Intangible assets, net |
13,270,330 |
17,134,494 |
||||||
| Total Non-Current Assets |
37,614,184 |
31,578,942 |
||||||
| Total Assets |
$ |
81,247,231 |
$ |
67,564,444 |
||||
| LIABILITIES AND STOCKHOLDERS' EQUITY |
||||||||
| Current Liabilities |
||||||||
| Accounts and other payables |
$ |
5,001,086 |
$ |
4,447,314 |
||||
| Short-term bank loans |
3,094,614 |
- |
||||||
| Valued-added tax payable |
432,885 |
344,191 |
||||||
| Warrants liability |
383,295 |
- |
||||||
| Total Current Liabilities |
8,911,880 |
4,791,505 |
||||||
| Commitment and contingencies |
||||||||
| Stockholders' Equity |
||||||||
| Common stock, $0.001 par value, 100,000,000 shares authorized, 15,476,113 and 12,676,113 shares issued and outstanding as of December 31, 2014 and 2013 |
15,476 |
12,676 |
||||||
| Additional paid-in capital |
30,303,508 |
25,748,669 |
||||||
| Deferred stock-based compensation |
- |
(365,017) |
||||||
| Statutory reserve |
7,354,413 |
7,126,432 |
||||||
| Retained earnings |
28,269,956 |
23,649,725 |
||||||
| Accumulated other comprehensive income |
6,391,998 |
6,600,454 |
||||||
| Total Stockholders' Equity |
72,335,351 |
62,772,939 |
||||||
| Total Liabilities and Stockholders' Equity |
$ |
81,247,231 |
$ |
67,564,444 |
||||
| Please refer to the accompanying notes which form an integral part of these consolidated financial statements which can be found on Form 10-K filed with U.S. Securities and Exchange Commission. |
||||||||
| BIOSTAR PHARMACEUTICALS, INC. |
||||||||
| CONSOLIDATED STATEMENTS OF OPERATIONS |
||||||||
| AND COMPREHENSIVE INCOME |
||||||||
| FOR THE YEARS ENDED DECEMBER 31, |
||||||||
| 2014 |
2013 |
|||||||
| Sales |
$ |
61,416,587 |
$ |
52,729,054 |
||||
| Cost of sales |
31,140,225 |
27,046,216 |
||||||
| Gross profit |
30,276,362 |
25,682,838 |
||||||
| Operating expenses: |
||||||||
| Advertising expenses |
8,594,303 |
7,562,662 |
||||||
| Selling expenses |
9,892,447 |
9,012,456 |
||||||
| General and administrative expenses |
7,718,388 |
6,092,139 |
||||||
| Recovery of doubtful accounts |
- |
(1,291,510) |
||||||
| Research and development expenses |
2,766,162 |
3,228,775 |
||||||
| Impairment loss on other receivables |
- |
330,004 |
||||||
| Impairment loss on intangible assets |
990,603 |
240,091 |
||||||
| Construction in progress written off |
1,627,154 |
- |
||||||
| Total operating expenses |
31,589,057 |
25,174,617 |
||||||
| (Loss) Income from operations |
(1,312,695) |
508,221 |
||||||
| Other income (expense) |
||||||||
| Interest income |
1,330,329 |
1,344,566 |
||||||
| Interest expense |
(154,547) |
(367,493) |
||||||
| Fair value adjustment on warrants |
577,599 |
- |
||||||
| Gain on disposal of intangible assets |
- |
1,168,451 |
||||||
| Additional compensation received for the disposed land use rights |
1,093,878 |
- |
||||||
| Other |
67 |
2,281 |
||||||
| Total other income, net |
2,847,326 |
2,147,805 |
||||||
| Income before income taxes |
1,534,631 |
2,656,026 |
||||||
| (Income tax benefit) Provision for income tax |
(3,313,581) |
1,846,980 |
||||||
| Net income |
$ |
4,848,212 |
$ |
809,046 |
||||
| Other comprehensive income |
(208,456) |
2,071,586 |
||||||
| Comprehensive income |
$ |
4,639,756 |
$ |
2,880,632 |
||||
| Earning per share |
||||||||
| Basic |
$ |
0.33 |
$ |
0.07 |
||||
| Diluted |
$ |
0.33 |
$ |
0.07 |
||||
| Weighted average number of common shares outstanding |
||||||||
| Basic |
14,499,401 |
11,510,802 |
||||||
| Diluted |
14,499,401 |
11,510,802 |
||||||
| Please refer to the accompanying notes which form an integral part of these consolidated financial statements which can be found on Form 10-K filed with U.S. Securities and Exchange Commission. |
||||||||
| BIOSTAR PHARMACEUTICALS, INC. |
||||||||
| CONSOLIDATED STATEMENTS OF CASH FLOWS |
||||||||
| FOR THE YEARS ENDED DECEMBER 31, |
||||||||
| 2014 |
2013 |
|||||||
| CASH FLOWS FROM OPERATING ACTIVITIES |
||||||||
| Net income |
$ |
4,848,212 |
$ |
809,046 |
||||
| Adjustments to reconcile net income to net cash provided by operating activities: |
||||||||
| Deferred income tax (benefit) expense |
(4,284,655) |
981,390 |
||||||
| Depreciation and amortization |
3,086,188 |
2,786,702 |
||||||
| Recovery of doubtful accounts |
- |
(1,291,510) |
||||||
| Recognition of deferred research and development expenses |
2,766,162 |
3,228,775 |
||||||
| Impairment loss on other receivables |
- |
330,004 |
||||||
| Impairment loss on intangible assets |
990,603 |
240,091 |
||||||
| Construction in progress written off |
1,627,154 |
- |
||||||
| Loss on disposal of property, plant and equipment |
3,275 |
- |
||||||
| Gain on disposal of intangible assets |
- |
(1,168,451) |
||||||
| Additional compensation received for the disposed land use rights |
(1,093,878) |
- |
||||||
| Stock-based compensation |
2,021,017 |
757,380 |
||||||
| Warrants liability |
(577,599) |
- |
||||||
| Changes in operating assets and liabilities: |
||||||||
| Accounts receivable and notes receivable |
(7,441,446) |
4,204,776 |
||||||
| Inventories |
152,454 |
43,461 |
||||||
| Deposits and other receivables |
244,270 |
(161,358) |
||||||
| Accounts payable and accrued expenses |
573,102 |
(1,449,439) |
||||||
| Value-added tax payable |
90,148 |
(301,662) |
||||||
| Income tax payable (recoverable) |
305,611 |
(100,092) |
||||||
| Net cash provided by operating activities |
3,310,618 |
8,909,113 |
||||||
| CASH FLOWS FROM INVESTING ACTIVITIES |
||||||||
| Purchase of property, plant and equipment |
(2,869,204) |
(982,012) |
||||||
| Proceeds from disposal of property, plant and equipment |
2,929 |
- |
||||||
| Deposit paid for research and development |
(4,067,885) |
(2,744,459) |
||||||
| Deposit paid for intended acquisitions |
(4,881,462) |
(3,874,530) |
||||||
| Proceeds from disposal of two drug approval numbers |
1,390,661 |
- |
||||||
| Compensation received for disposed land use rights |
1,546,822 |
3,390,214 |
||||||
| Net cash used in investing activities |
(8,878,139) |
(4,210,787) |
||||||
| CASH FLOWS FROM FINANCING ACTIVITIES |
||||||||
| Repayment to a related party |
- |
(1,614,387) |
||||||
| Proceeds from short-term bank loans |
3,254,307 |
- |
||||||
| Repayment of short-term bank loans |
(162,715) |
(4,843,162) |
||||||
| Proceeds from stock issuance and warrants |
3,862,533 |
- |
||||||
| Net cash provided by (used in) financing activities |
6,954,125 |
(6,457,549) |
||||||
| Effect of exchange rate changes on cash and cash equivalents |
218,478 |
80,217 |
||||||
| Net increase (decrease) in cash and cash equivalents |
1,605,082 |
(1,679,006) |
||||||
| Cash and cash equivalents, beginning balance |
80,072 |
1,759,078 |
||||||
| Cash and cash equivalents, ending balance |
$ |
1,685,154 |
$ |
80,072 |
||||
| SUPPLEMENTAL DISCLOSURES: |
||||||||
| Interest received |
$ |
1,330,329 |
$ |
1,344,566 |
||||
| Interest paid |
$ |
(154,547) |
$ |
(355,657) |
||||
| Income tax paid |
$ |
(665,621) |
$ |
(965,681) |
||||
| Please refer to the accompanying notes which form an integral part of these consolidated financial statements which can be found on Form 10-K filed with U.S. Securities and Exchange Commission. |
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SOURCE Biostar Pharmaceuticals, Inc.
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