Shiner International, Inc. Announces Fourth Quarter and Fiscal Year-End 2009 Financial Results
HAIKOU, China, March 8 /PRNewswire-Asia/ -- Shiner International, Inc. (Nasdaq: BEST), an emerging global supplier of anti-counterfeiting and advanced packaging products, today announced financial results for the fourth quarter and fiscal year-end December 31, 2009.
Financial Summary
Fourth Quarter Results
-- Total revenue in the fourth quarter 2009 was $10.8 million versus $8.7
million for the third quarter 2009 and $11.0 million for the fourth
quarter of 2008.
-- Net income of $0.15 million versus $0.30 million in the third quarter
of 2009, and up from a net loss of $0.37 million in the fourth quarter
of 2008.
-- Earnings per share of $0.01 for the quarter, unchanged from the prior
quarter, and up from $(0.02) in the 2008 fourth quarter.
-- On a non-GAAP basis, adjusted net income was $0.3 million, an increase
from a net loss of $0.3 million in the comparable period in 2008 and
adjusted earnings per share for the fourth quarter of 2009 was $0.01,
versus $ (0.01) for the fourth quarter of 2008.
Year-end Results
-- Revenue was $34.5 million, compared to $51.6 million for 2008.
-- Earnings per share of $0.00 for 2009, versus $0.20 for 2008.
-- Net loss was of $0.1 million for 2009 compared to net income of $4.9
million for 2008.
-- On a non-GAAP basis, adjusted net income was $0.1 million for 2009
versus net income of $5.0 million for 2008.
Revenues and Earnings
Shiner's revenue for the three months ended December 31, 2009 increased 24% on a sequential basis from the quarter ended September 30, 2009, but was down 2% when compared to the same period in 2008. The quarter to quarter increases in revenue related directly to increases in sales in two of Shiner's main business lines, including a 6.7% increase in coated film sales from $3.7 million for the fourth quarter compared to $3.5 million from the year ago period. Anti-counterfeit film sales, our biggest potential market, increased 77% to $2.5 million from the comparable period a year ago of $1.1 million. Revenue from BOPP tobacco film sales was $4.2 million for the quarter ended December 31, 2009, a decrease of 17.9% from the same period one year ago. Revenue from color printing decreased 62% to $0.4 million in the fourth quarter in 2009 from $1.1 million from the comparable period in 2008.
For the full fiscal year, Shiner's total revenues were $34.5 million, a decrease of 33% over fiscal 2008 revenue of $ 51.6 million.
International sales for the year ended December 31, 2009 totaled $10.4 million and accounted for 30.1% of Shiner's total revenues in comparison to $11.0 million, or 21.3%, for the year ended December 31, 2008. A 5.4%, $0.6 million, decrease in international sales was primarily due to an 11.5% decrease in anti-counterfeit film sales.
Income from operations was $0.3 million for the 2009 fourth quarter compared to a $0.3 million loss in the same period of the prior year. Income from operations for the full fiscal year of 2009 was $0.2 million compared to $5.5 million for fiscal 2008.
For the fourth quarter of fiscal 2009, Shiner reported net income of $0.15 million which compared to a net loss of $0.4 million in the same period of the prior year. Adjusted net income was $0.3 million in the fourth quarter of fiscal 2009 compared to an adjusted net loss of $0.3 million in the fourth quarter of the prior year. Adjusted earnings per share were $0.01 for the fourth quarter of fiscal 2009 compared to an adjusted net loss of $0.01 for the fourth quarter of fiscal 2008.
Shiner had a net loss for 2009 of $0.1 million compared to net income of $4.9 million for fiscal 2008. Adjusted net income for the full fiscal year was $0.15 million, or $0.01 per share, compared with $5.0 million, or $0.20 per share in the prior year.
Operating cash flow totaled $4.2 million for the fourth quarter of fiscal 2009 and $6.7 million for the full year, up 2,396% and 171%, respectively, compared to $0.17 million and $2.5 million for the comparable 2008 periods. Total cash and cash equivalents as of December 31, 2009 were $3.1 million. During 2009, Shiner repurchased 61,845 shares of its common stock on the open market (treasury shares) for $58,036.
Management Comments
Mr. Qingtao Xing, Shiner's C.E.O., commented, "The recently enacted Food Safety Law is beginning to strengthen consumer confidence. A regional melamine scare located in the Guangdong Provence in early February of 2010 was handled promptly by government regulators and had no impact on consumer confidence. This minor flare-up highlights the work that is still required to meet consumer expectations for protection but demonstrates the government's desire and will to provide for a safe food supply for the Chinese consumer. With the mild recovery of the global market, and growing consumer confidence in the Chinese domestic market, we are guardedly optimistic that consumption will continue to rebound."
Commenting on Shiner's performance, Qingtao stated, "We are encouraged by the continued positive trends in revenue in the fourth quarter; our gross profit was positively impacted by improved product mix toward our higher margin products, anti counterfeit film and coated film, which resulted in our net income remaining unchanged from the previous quarter. We are experiencing an increase of inquiries from food manufacturers on how to comply with the new food regulations enacted in June 2009. This renewed interest from manufacturers affects our entire breadth of products and we are confident this will lead to an overall improvement in our business. We will complete construction of our new Hainan manufacturing facility in June 2010 at a total cost of $12 million with the facility expected to be fully operational in October. With the completion of this facility, Shiner will be well positioned to be the prime beneficiary of increased domestic consumption, a growing world economy, and increased market penetration through the recently enacted Food Safety Laws. We believe that Shiner will continue to improve its revenue and net income and increase the value to our shareholders."
About Shiner International, Inc.
Shiner International is engaged in the research and development, manufacture and sale of flexible packaging material. Products include coated packaging film, shrink-wrap film, common packaging film, anti-counterfeit laser holographic film and color-printed packaging materials. The Company's flexible packaging products are used by manufacturers in the food and consumer products industry to preserve texture, flavor, hygiene, and convenience and safety of their products. The Company was founded in 1990 and is headquartered in Haikou China.
Approximately 69% percent of Shiner's current customers are located in China with the remainder spanning Southeast Asia, Europe, the Middle East and North America. Shiner holds 15 patents on products and production equipment, and has an additional eight patent applications pending. The Company's flexible packaging meets the approval of U.S. FDA requirements, as well as those required for food packaging sold in the EU. Shiner's product manufacturing process is certified under ISO 9001:2000. Additional information on Shiner International is available at http://www.shinerinc.com .
Safe Harbor Statements
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.
Use of Non-GAAP Financial Measures
Shiner believe that "adjusted net income" and "adjusted earnings per share," when taken in conjunction with reported results, provide a useful measure of financial performance since they eliminate the impact of certain non-recurring, non-cash charges. These non-GAAP measures should not be considered in isolation or as a substitute for the most comparable GAAP measures. Additionally, the non-GAAP financial measures used by Shiner may not be comparable to non-GAAP financial measures used by other companies. A reconciliation of GAAP to non-GAAP results is provided in the Financial Statements included in this press release. An explanation of these measures is also included below under the heading "Use of Non-GAAP Financial Measures."
Shiner uses certain non-GAAP financial measures internally to understand, manage and evaluate its business and make operating decisions. In addition, Shiner believes "adjusted net income" and "adjusted earnings per share," when used as a supplement to GAAP financial measures, provide a useful measure of financial performance since they eliminate the impact of certain non-recurring, non-cash charges. These non-GAAP financial measures provide an additional tool for investors to use in evaluating ongoing operating results and trends.
These non-GAAP financial measures should be considered as a supplement to, and not as a substitute for or superior to, financial information prepared in accordance with GAAP. Investors are encouraged to review the reconciliation of these non-GAAP measures to their most directly comparable GAAP financial measures. Additionally, investors are advised that the non-GAAP financial measures used by Shiner may not be comparable to non-GAAP financial measures used by other companies.
Adjusted Net Income and Earnings Per Share For the Year Ended
December 31, 2008
Three Months Ended Twelve Months Ended
December 31, December 31,
2009 2008 2009 2008
Net income (loss) $153,720 $(374,339) $(99,801) $4,879,306
Adjustments to net loss:
Charge taken for options
that were canceled in 2009 -- 39,891 106,376 159,564
One-time discount given to
major customer 135,586 -- 135,586 --
Adjusted net income $289,306 $(334,448) $142,161 $5,038,870
Weighted average shares
outstanding 24,597,435 24,650,000 24,622,204 24,650,000
Basic earnings per share, as
adjusted $0.01 ($0.01) $0.01 $0.20
SHINER INTERNATIONAL, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS AND OTHER COMPREHENSIVE INCOME (LOSS)
FOR THE THREE MONTHS DECEMBER 31, 2009 AND 2008
2009 2008
Net Revenue $10,777,702 $10,997,634
Cost of Revenue 9,262,901 9,634,417
Gross profit 1,514,801 1,363,217
Operating expenses
Selling expenses 600,197 707,523
General and administrative
expenses 834,838 698,496
Total operating expenses 1,435,035 1,406,019
Income (loss) from operations 79,766 (42,802)
Non-operating income (expense):
Other income (expense), net (155,809) (176,071)
Subsidy income 320,213 12,449
Interest income 10,981 5,640
Interest expense (37,524) (53,671)
Exchange gain (loss) (3,523) (68,555)
Total non-operating
income (expense) 134,338 (280,208)
Income before income tax 214,104 (323,010)
Income tax 60,384 51,329
Net income 153,720 (374,339)
Other comprehensive income
Foreign currency translation
gain 877 47,907
Comprehensive Income $154,597 $(326,432)
Weighted average shares outstanding:
Basic 24,597,435 24,650,000
Diluted 24,597,435 24,650,000
Earnings per share:
Basic $0.01 $(0.02)
Diluted $0.01 $(0.02)
SHINER INTERNATIONAL, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS AND OTHER COMPREHENSIVE INCOME (LOSS)
FOR THE YEARS ENDED DECEMBER 31, 2009 AND 2008
2009 2008
Net Revenue $34,516,827 $51,594,842
Cost of Revenue 29,925,504 42,026,145
Gross profit 4,591,323 9,568,697
Operating expenses
Selling expenses 1,822,239 1,839,846
General and administrative
expenses 2,962,218 2,584,842
Total operating expenses 4,784,457 4,424,688
Income (loss) from operations (193,134) 5,144,009
Non-operating income (expense):
Other income (expense), net (156,220) (43,336)
Subsidy income 443,893 469,234
Interest income 31,972 26,504
Interest expense (165,135) (113,486)
Exchange gain (loss) 51,304 (56,896)
Total non-operating income
(expense) 205,814 282,020
Income before income tax 12,680 5,426,029
Income tax 112,481 546,723
Net income (loss) (99,801) 4,879,306
Other comprehensive income
Foreign currency translation
gain 2,230 1,593,456
Comprehensive Income (Loss) $(97,571) $6,472,762
Weighted average shares outstanding:
Basic 24,622,204 24,650,000
Diluted 24,622,204 24,650,000
Earnings per share:
Basic $(0.00) $0.20
Diluted $(0.00) $0.20
SHINER INTERNATIONAL, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
December 31, December 31,
2009 2008
ASSETS
CURRENT ASSETS:
Cash & cash equivalents $3,059,796 $3,816,454
Restricted cash 733,455 684,212
Accounts receivable, net of
allowance for doubtful accounts of
$252,008 and $223,973 6,405,741 7,594,718
Advances to suppliers 3,192,211 3,677,890
Notes receivable 88,311 43,503
Inventory, net 8,320,624 7,079,390
Prepaid expenses & other current
assets 299,694 1,283,650
Total current assets 22,099,832 24,179,817
Property and equipment, net 12,163,693 12,412,689
Construction in progress 6,582,805 32,265
Advance for purchase of equipment -- 1,531,590
Intangible assets, net 349,491 356,447
TOTAL ASSETS $41,195,821 $38,512,808
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable $2,667,835 $3,798,790
Other payables 4,487,587 145,507
Unearned revenue 234,543 161,516
Accrued payroll 138,826 39,979
Short term loan 3,227,400 3,884,197
Dividend payable -- 63,267
Total current liabilities 10,756,191 8,093,256
Commitments and contingencies
STOCKHOLDERS' EQUITY:
Common stock, par value $0.001;
75,000,000 shares authorized,
24,650,000 shares issued and
24,588,155 shares outstanding
at December 31, 2009
24,650,000 shares issued and
24,650,000 shares outstanding
at December 31, 2008 24,650 24,650
Additional paid-in capital 11,389,756 11,214,071
Treasury stock (61,845 shares) (58,036) --
Other comprehensive income 2,980,077 2,977,847
Statutory reserve 2,872,856 2,854,686
Retained earnings 13,230,327 13,348,298
Total stockholders' equity 30,439,630 30,419,552
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY $41,195,821 $38,512,808
SHINER INTERNATIONAL, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE YEARS ENDED DECEMBER 31, 2009 AND 2008
2009 2008
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss) $(99,801) $4,879,306
Adjustments to reconcile net income
to net cash provided by operating
activities:
Depreciation 1,647,639 1,301,403
Amortization 6,952 6,835
Stock compensation expense for
options issued to directors 175,685 159,568
Loss on disposal of assets 183,644 --
(Increase) / decrease in assets:
Accounts receivable 1,217,801 1,988,896
Inventories (1,240,474) (214,794)
Advances to suppliers 485,381 (970,766)
Other assets 953,758 (810,886)
Increase / (decrease) in current
liabilities:
Accounts payable (1,130,262) (970,141)
Unearned revenue 72,981 (388,138)
Other payables 4,339,873 (1,532,111)
Accrued payroll 98,786 (4,110)
Tax and welfare payable -- (971,743)
Net cash provided by operating
activities 6,711,963 2,473,319
CASH FLOWS FROM INVESTING ACTIVITIES
Payment on (issuance of) notes
receivable (44,780) (943)
Payments for property and
equipment (1,525,917) (5,678,801)
Payments for construction in
progress (5,069,602) (31,704)
Increase in restricted cash (49,212) (672,319)
Net cash used in investing
activities (6,689,511) (6,383,767)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from short-term loans 3,227,400 3,774,309
Repayment of short-term loans (3,883,795) (822,528)
Purchase of treasury stock (58,036) --
Payment of offering costs -- (99,000)
Dividend paid (63,228) (6,297)
Net cash provided by (used in)
financing activities (777,659) 2,846,484
Effect of exchange rate changes on
cash and cash equivalents (1,451) 272,984
NET DECREASE IN CASH & CASH
EQUIVALENTS (756,658) (790,980)
CASH & CASH EQUIVALENTS, BEGINNING
BALANCE 3,816,454 4,607,434
CASH & CASH EQUIVALENTS, ENDING
BALANCE $3,059,796 $3,816,454
SUPPLEMENTAL DISCLOSURE OF CASH FLOW
INFORMATION:
Interest paid $165,136 $114,100
Income taxes paid $90,913 $544,135
Transfer from construction-in-
process to property and equipment $-- $227,510
For more information, please contact:
Shiner International, Inc.
Jeffrey T. Roney
C.F.O.
Email: [email protected]
Phone: +1-434-531-4146
SOURCE Shiner International, Inc.
Share this article