XIANYANG, China, April 5 /PRNewswire-Asia-FirstCall/ -- Biostar Pharmaceuticals, Inc. (OTC Bulletin Board: BSPM) ("Biostar" or "the Company"), the Xianyang-based manufacturer of a leading over-the-counter Hepatitis B medicine, Xin Aoxing Oleanolic Acid Capsule ("Xin Aoxing"), and other pharmaceutical products, today supplements its earlier 2009 earnings release and provides fourth quarter results.
The following tables are designed to clarify statements made about the Company's GAAP and Adjusted Non-GAAP performance on its FY2009 Conference Call concluded at 11:00am ET on April 1, 2010 and provide additional detail of the Company's fourth quarter 2009 performance.
For more information about the non-GAAP financial measures contained in this press release, please see "About Non-GAAP Financial Measures" below.
Fourth Quarter 2009 Results (Unaudited) Q4 2009 Q4 2008 CHANGE Net Sales $17.1 million $10.1 million +69.3% Gross Profit $12.5 million $6.5 million +92.3% GAAP Net Income $1.7 million $2.6 million -34.6% GAAP Net income applicable to common stockholders -1.0 million 1.1 million -190.9% GAAP EPS (Diluted) -$0.04 $0.04 -200.0% Adjusted Non-GAAP Net Income $2.7 million* $2.6 million** +3.8% Adjusted Non-GAAP EPS (Diluted) $0.11 $0.11 0% Shares used in computing fully diluted EPS 24.3 million 23.3 million *Excluding 2009 non-cash stock based compensation charge of $1.0 million and one-time deemed dividend of $2.7 million from beneficial conversion feature of preferred stock. ** Excluding 2008 one-time deemed dividend of $1.5 million Fiscal 2009 Results (Audited) FY 2009 FY 2008 CHANGE Net Sales $53.3 million $33.9 million +57.2% Gross Profit $39.0 million $19.9 million +96.0% GAAP Net Income $10.5 million $6.7 million +56.7% GAAP Net Income applicable to common stockholders $7.8 million $5.2 million +50.0% GAAP EPS (Fully Diluted) $0.32 $0.22 +45.5% Adjusted Non-GAAP Net Income $11.5 million* $6.7 million** +71.6% Adjusted Non-GAAP EPS (fully diluted) $0.47* $0.29** +62.1% Shares used in computing fully diluted EPS 24.3 million 23.3 million *Excluding 2009 non-cash stock based compensation charge of $1.0 million and one-time deemed dividend of $2.7 million from beneficial conversion feature of preferred stock. ** Excluding 2008 one-time deemed dividend of $1.5 million. Capital Structure Table at December 31, 2009: Common shares outstanding: 23,374,799 Preferred shares convertible to common: 3,060,000 Warrants Outstanding (average exercise price of $1.63) 1,588,588 Options Outstanding (average exercise price of $2.77) 1,080,000 Total 29,103,387
2010 Guidance, Balance Sheet and Cash Flow Summary
Management provided guidance for fiscal 2010 for revenues of $80.0 to $82.0 million with net income of $18 to $20 million. The company had working capital of $24.1 million on December 31, 2009 and generated cash flow from operations of $5.7 million during fiscal 2009. Management believes its current balance sheet is sufficient to meet its guidance for 2010.
About Non-GAAP Financial Measures
This press release contains non-GAAP financial measures for the non-cash charges related to stock-based compensation and the deemed dividend from beneficial conversion feature of preferred stock. The Company believes that these non-GAAP financial measures are useful to investors because they exclude non-cash charges that management excludes when it internally evaluates the performance of the Company's business and makes operating decisions, including internal budgeting, and performance measurement, because such measures provide a consistent method of comparison to historical periods. Moreover, management believes such non-GAAP measures reflect the essential operating activities of Biostar. Accordingly, management excludes the non-cash stock-based compensation charge and the deemed dividend from beneficial conversion feature of preferred stock when making operational decisions. The Company believes that providing the non-GAAP measures that management uses to its investors is useful to investors for a number of reasons. The non-GAAP measures provide a consistent basis for investors to understand the Company's financial performance in comparison to historical periods. In addition, it allows investors to evaluate the Company's performance using the same methodology and information as that used by management. Non-GAAP measures are subject to inherent limitations because they do not include all of the expenses included under GAAP and because they involve the exercise of judgment of which charges are excluded from the non-GAAP financial measure. However, management compensates for these limitations by providing the relevant disclosure of the items excluded.
About Biostar Pharmaceuticals, Inc.
Biostar Pharmaceuticals, Inc., through its wholly-owned subsidiary in China, develops, manufactures and markets pharmaceutical products for a variety of diseases and conditions. The Company's most popular product is its Xin Ao Xing Oleanolic Acid Capsule, an over-the-counter ("OTC") medicine for chronic hepatitis B, a disease affecting approximately 10% of the Chinese population. In addition to its hepatitis product, Biostar currently manufactures two broad-based OTC products and two prescription-based pharmaceuticals. The Company has adopted international standards, holds one patent and is in the process of applying for two patents.
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 risks and uncertainties relating to these statements include, but are not limited to, risks and uncertainties regarding the 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 S-1 dated June 27, 2008, our 10-K for the year ended December 31, 2009, and other recent 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.
SOURCE Biostar Pharmaceuticals, Inc.