SkyPeople Q3 Revenue Up 79% to $34.8 Million, Net Income Increases 45% to $4.7 Million
XI'AN, China, Nov. 14, 2014 /PRNewswire/ -- SkyPeople Fruit Juice, Inc. (NasdaqGM: SPU), ("SkyPeople" or "the Company"), a producer of fruit juice concentrates, fruit juice beverages and other fruit-related products, today announced financial results for the third quarter ended September 30, 2014.
Third Quarter 2014 Summary:
- Revenue was $34.8 million, an increase of 79% year-over-year
- Gross profit was $10.2 million, an increase of 41% year-over-year
- Income from operations was $7.2 million, an increase of 57% year-over-year
- Net income was $4.7 million, an increase of 45% year-over-year
- Cash and cash equivalents were $52.7 million as of September 30, 2014
"We are very pleased to report these strong financial results, highlighted by a balanced contribution to revenue among our core products due to the general availability of fresh fruit raw materials during the quarter," said Mr. Hongke Xue, chief executive officer of SkyPeople. "These quarterly results confirm our strategy for procuring sufficient quantities of fresh fruit by locating our production facilities near fruit growing centers in large fruit producing provinces.
"In terms of our major project initiatives, our project to develop a manufacturing base for kiwi products in Mei County has shown progress with the construction of a kiwi fruit and fruit-related materials trading zone now mostly completed. Our orange development project in Hubei Province is also making progress with the goal of these two projects to meaningfully expand our processing capabilities.
"SkyPeople now sells its fruit juice beverages to more than 20,000 retail stores in some 20 provinces in China," said Mr. Xue, and he expects these figures to continue to improve in the quarters ahead.
"China's rising incomes, we believe, are speeding the transition in consumer tastes towards healthy living, including the increased consumption of high-quality fruit juice beverages. We are therefore well positioned to capitalize on this trend and to continue to capture additional market share," said Mr. Xue.
Third Quarter 2014 Financial Results
Revenue. Revenue for the three months ended September 30, 2014 was $34.8 million, an increase of 79% compared to $19.5 million for the same period of 2013. This increase was due to an increase in sales in almost all of our product lines, offset by the decrease of revenue from the other products segment.
Third Quarter 2014 Revenue by Product Segment
(in $000's except %'s) |
Three Months ended Sept. 30, |
||||
2014 |
2013 |
% change |
|||
Concentrated apple juice and apple aroma |
5,617 |
55 |
10,113% |
||
Concentrated kiwifruit juice and kiwi puree |
357 |
269 |
33% |
||
Concentrated pear juice |
10,506 |
6,156 |
71% |
||
Fruit juice beverages |
14,475 |
12,844 |
13% |
||
Fresh fruits and vegetables |
3,862 |
1 |
386,100% |
||
Other |
10 |
147 |
(93%) |
||
Total |
34,827 |
19,472 |
79% |
Third Quarter 2014 Gross Profit by Product Segment
The company's gross profit was $10.2 million in Q3 2014, an increase of 41% from $7.2 million for the same period in 2013. The increase was primarily due to the increase in gross profit generated from apple-related products, concentrated pear juice, fruit juice beverages, fresh fruits and vegetables and other products segments, which was partially offset by a lesser amount of gross profit generated from kiwi-related products..
(In $000's except %) |
Three months ended September 30, |
|||||||
2014 |
2013 |
|||||||
Gross |
Gross |
Gross |
Gross |
|||||
Concentrated apple juice and apple aroma |
103 |
2% |
(20) |
(36%) |
||||
Concentrated kiwifruit juice and kiwi puree |
(23) |
(6%) |
187 |
70% |
||||
Concentrated pear juice |
2,605 |
25% |
2,213 |
36% |
||||
Fruit juice beverages |
6,346 |
44% |
4,846 |
38% |
||||
Fresh fruits and vegetables |
1,121 |
29% |
- |
- |
||||
Other |
(1) |
(10%) |
(9) |
(6%) |
||||
Total |
10,151 |
29% |
7,217 |
37% |
Operating Expenses. Operating expenses for the third quarter of 2014 were $3.0 million, or 9% of sales, as compared to $2.6 million, or 13% of sales for Q3 2013. General and administrative expenses decreased 19% to $1.3 million for Q3 2014 as compared to $1.6 million for the same period of 2013, but selling expenses increased 63% in Q3 2014 to $1.6 million as compared to $1.0 million for the same period of 2013, mainly due to an increase in payroll and related expenses necessary to handle the company's increased sales.
Income from Operations. Income from operations was $7.2 million for the third quarter of 2014, an increase of 57% as compared to $4.6 million for the same period of 2013.
Net Income and Earnings Per Share. Net income for the third quarter of 2014 was $4.7 million, an increase of 45% as compared to $3.3 million for the same period of 2013, primarily due to the 41% increase in gross profit. Earnings per share attributable to SkyPeople Fruit Juice for the third quarter of 2014 was $0.17 as compared to $0.11 for the same period of 2013.
Nine Months 2014 Financial Results
Revenue for the nine months ended September 30, 2014 was $58.6 million, an increase of 21% compared to $48.4 million for the same period of 2013. Gross profit was $18.4 million, an increase of 1% compared to $18.2 million for the same period of 2013. Gross margin for the nine months ended September 30, 2014 was 31% compared to 38% in the same period of 2013. Operating expenses for the first nine months of 2014 were $7.4 million, or 13% of sales, as compared to $7.2 million, or 15% of sales for the same period of 2013. General and administrative expenses were $3.5 million, a decrease of 17% as compared to $4.2 million for the same period of 2013. Selling expenses were $3.9 million, an increase of 31% as compared to $3.0 million for the same period of 2013. Income from operations for the nine months ended September 30, 2014 was $10.99 million, a decrease of less than 1% as compared to $11.03 million for the same period of 2013. Net income attributable to SkyPeople Fruit Juice for the first nine months ended September 30, 2014 was $5.1 million, or $0.19 per share, compared to $7.5 million, or $0.28 per share, for the same period of 2013.
Third Quarter 2014 Financial Condition
As of September 30, 2014, the company had $52.7 million in cash, cash equivalents and restricted cash, compared to $74.1 million as of fiscal year end 2013. The Company's restricted cash of $18.8 million consisted of cash equivalents used as collateral to secure short-term notes payable. SkyPeople's working capital as of September 30, 2014 was $31.3 million, a decrease in working capital of $71.9 million as of December 31, 2013. As of September 30, 2014, the Company had total liabilities of $99.5 million including $44.9 million in short-term bank loans and bank notes payable, an $8.0 million long-term loan to a related party and $20.2 million in capital lease obligations. As of September 30, 2014, shareholders' equity attributable to SkyPeople was $177.1 million as compared to $173.5 million as of fiscal year-end 2013.
Conference Call
The Company will hold a conference call on Monday, November 17, 2014 at 9:00 am Eastern Time to discuss its financial results for the third quarter ended September 30, 2014. The Company's Chairman, Mr. Yongke Xue, and Chief Financial Officer, Mr. Xin Ma, will host the call.
To attend the live conference call, please dial in at least 10 minutes before the call to ensure timely participation. Please use the dial-in information below.
Date: |
Monday, November 17, 2014 |
Time: |
9:00 am Eastern Time, US |
Conference Line Dial-In: |
+1-877-407-8031 |
International Dial-In: |
+1-201-689-8031 |
To access the replay, please dial 1-877-660-6853 within the United States or 1-201-612-7415 when dialing internationally. The pass code for the replay is 13595110 and it will be available from November 17, 2014 at 12:00 pm through November 24, 2014.
About SkyPeople Fruit Juice, Inc.
SkyPeople Fruit Juice, Inc., a Florida company, through its wholly-owned subsidiary Pacific Industry Holding Group Co., Ltd. ("Pacific"), a Vanuatu company, and SkyPeople Juice International Holding (HK) Ltd., a company organized under the laws of Hong Kong Special Administrative Region of the People's Republic of China and a wholly owned subsidiary of Pacific, holds 99.78% ownership interest in SkyPeople Juice Group Co., Ltd. ("SkyPeople (China)"). SkyPeople (China), together with its operating subsidiaries in China, is engaged in the production and sales of fruit juice concentrates, fruit beverages, and other fruit related products in the PRC and overseas markets. Its fruit juice concentrates are sold to domestic customers and exported directly or via distributors. Fruit juice concentrates are used as a basic ingredient component in the food industry. Its brands, "Hedetang" and "SkyPeople," which are registered trademarks in the PRC, are positioned as high quality, healthy and nutritious end-use juice beverages. For more information, please visit http://www.skypeoplefruitjuice.com.
Safe Harbor Statement
Certain of the statements made in this press release are "forward-looking statements" within the meaning and protections of Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended, or the Exchange Act. Forward-looking statements include statements with respect to our beliefs, plans, objectives, goals, expectations, anticipations, assumptions, estimates, intentions, and future performance, and involve known and unknown risks, uncertainties and other factors, which may be beyond our control, and which may cause the actual results, performance, capital, ownership or achievements of the Company to be materially different from future results, performance or achievements expressed or implied by such forward-looking statements. All statements other than statements of historical fact are statements that could be forward-looking statements. You can identify these forward-looking statements through our use of words such as "may," "will," "anticipate," "assume," "should," "indicate," "would," "believe," "contemplate," "expect," "estimate," "continue," "plan," "point to," "project," "could," "intend," "target" and other similar words and expressions of the future.
All written or oral forward-looking statements attributable to us are expressly qualified in their entirety by this cautionary notice, including, without limitation, those risks and uncertainties described in our annual report on Form 10-K for the year ended December 31, 2013 and otherwise in our SEC reports and filings, including the final prospectus for our offering. Such reports are available upon request from the Company, or from the Securities and Exchange Commission, including through the SEC's Internet website at http://www.sec.gov. We have no obligation and do not undertake to update, revise or correct any of the forward-looking statements after the date hereof, or after the respective dates on which any such statements otherwise are made.
For more information, please contact:
|
|
COMPANY |
INVESTOR RELATIONS |
Xin Ma, Chief Financial Officer |
David Rudnick, Account Manager |
SkyPeople Fruit Juice, Inc. |
Precept Investor Relations |
Tel: China + 86 - 29-8837-7161 |
Tel: US +1 917-864-8849 |
Email: [email protected] |
Email: [email protected] |
SKYPEOPLE FRUIT JUICE, INC. |
||||||
CONSOLIDATED BALANCE SHEETS |
||||||
September 30, 2014 |
December 31, 2013 |
|||||
(Unaudited) |
||||||
ASSETS |
||||||
CURRENT ASSETS |
||||||
Cash and cash equivalents |
$ |
33,879,350 |
$ |
66,888,954 |
||
Restricted cash |
18,772,857 |
7,216,782 |
||||
Accounts receivables, net of allowance of |
46,668,461 |
34,179,426 |
||||
Other receivables |
1,196,619 |
575,040 |
||||
Inventories |
4,570,061 |
4,381,900 |
||||
Deferred tax assets |
945,799 |
535,713 |
||||
Advances to suppliers and other current assets |
618,438 |
1,298,201 |
||||
TOTAL CURRENT ASSETS |
106,651,585 |
115,076,016 |
||||
PROPERTY, PLANT AND EQUIPMENT, NET |
96,202,206 |
61,907,175 |
||||
LAND USE RIGHT, NET |
6,326,001 |
6,522,152 |
||||
SECURITY DEPOSIT FOR CAPITAL LEASE |
3,145,063 |
- |
||||
OTHER ASSETS |
68,503,757 |
49,614,200 |
||||
TOTAL ASSETS |
$ |
280,828,612 |
$ |
233,119,543 |
||
LIABILITIES |
||||||
CURRENT LIABILITIES |
||||||
Accounts payable |
$ |
15,606,626 |
$ |
3,572,968 |
||
Accrued expenses |
9,276,149 |
4,008,715 |
||||
Income tax payable |
1,125,917 |
1,749,138 |
||||
Advances from customers |
413,607 |
355,968 |
||||
Notes payable -bank |
22,836,245 |
10,825,173 |
||||
Short-term loan - related party |
- |
24,970 |
||||
Short-term bank loans |
22,051,316 |
22,626,679 |
||||
Obligations under capital leases - current |
4,037,530 |
- |
||||
TOTAL CURRENT LIABILITIES |
75,347,390 |
43,163,611 |
||||
NON-CURRENT LIABILITIES |
||||||
Long-term loan - related party |
8,000,000 |
8,000,000 |
||||
Obligations under capital leases |
16,133,086 |
- |
||||
TOTAL NON-CURRENT LIABILITIES |
24,133,086 |
8,000,000 |
||||
TOTAL LIABILITIES |
99,480,476 |
51,163,611 |
||||
STOCKHOLDERS' EQUITY |
||||||
SkyPeople Fruit Juice, Inc, Stockholders' equity |
||||||
Series B Preferred stock, $0.001 par value; |
- |
- |
||||
Common stock, $0.001 par value; 66,666,666 shares authorized; 26,661,499 shares issued |
26,661 |
26,661 |
||||
Additional paid-in capital |
59,189,860 |
59,189,860 |
||||
Retained earnings |
100,078,248 |
94,962,299 |
||||
Accumulated other comprehensive income |
17,800,879 |
19,354,599 |
||||
Total SkyPeople Fruit Juice, Inc. |
177,095,648 |
173,533,419 |
||||
Non-controlling interests |
4,252,488 |
8,422,513 |
||||
TOTAL STOCKHOLDERS' EQUITY |
181,348,136 |
181,955,932 |
||||
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY |
$ |
280,828,612 |
$ |
233,119,543 |
||
The accompanying notes in the Company's 10-Q are an integral part of these consolidated financial statements. |
SKYPEOPLE FRUIT JUICE, INC. |
||||||||||||||||
CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME |
||||||||||||||||
(Unaudited) |
||||||||||||||||
For the |
For the |
|||||||||||||||
2014 |
2013 |
2014 |
2013 |
|||||||||||||
Revenue |
$ |
34,827,203 |
$ |
19,472,130 |
$ |
58,589,022 |
$ |
48,433,495 |
||||||||
Cost of goods sold |
24,676,265 |
12,254,866 |
40,212,499 |
30,221,343 |
||||||||||||
Gross profit |
10,150,938 |
7,217,264 |
18,376,523 |
18,212,152 |
||||||||||||
Operating Expenses |
||||||||||||||||
General and administrative expenses |
1,317,546 |
1,628,699 |
3,506,497 |
4,216,128 |
||||||||||||
Selling expenses |
1,628,415 |
997,213 |
3,877,904 |
2,951,300 |
||||||||||||
Research and development expenses |
- |
- |
- |
18,980 |
||||||||||||
Total operating expenses |
2,945,961 |
2,625,912 |
7,384,401 |
7,186,408 |
||||||||||||
Income from operations |
7,204,977 |
4,591,352 |
10,992,122 |
11,025,744 |
||||||||||||
Other income (expenses) |
||||||||||||||||
Interest income |
75,809 |
76,775 |
387,682 |
231,295 |
||||||||||||
Subsidy income |
91,362 |
194,587 |
562,333 |
981,400 |
||||||||||||
Interest expenses |
(811,317) |
(475,190) |
(3,373,521) |
(1,103,246) |
||||||||||||
Consulting fee related to capital lease |
(20,952) |
- |
(903,652) |
- |
||||||||||||
Total other income (expenses) |
(665,098) |
(203,828) |
(3,327,158) |
109,449 |
||||||||||||
Income before income tax |
6,539,879 |
4,387,524 |
7,664,964 |
11,135,193 |
||||||||||||
Income tax provision |
1,822,995 |
1,130,388 |
2,154,205 |
2,937,007 |
||||||||||||
Net income |
4,716,884 |
3,257,136 |
5,510,759 |
8,198,186 |
||||||||||||
Less: Net income attributable to non-controlling interests |
153,475 |
243,260 |
394,810 |
686,120 |
||||||||||||
NET INCOME ATTRIBUTABLE TO |
$ |
4,563,409 |
$ |
3,013,876 |
5,115,949 |
7,512,066 |
||||||||||
Other comprehensive income (loss) |
||||||||||||||||
Foreign currency translation adjustment |
8,747 |
904,683 |
(1,708,333) |
3,834,634 |
||||||||||||
Comprehensive income |
4,572,156 |
3,918,559 |
3,407,616 |
11,346,700 |
||||||||||||
Other comprehensive income (loss) |
(49,216) |
81,879 |
(154,613) |
347,055 |
||||||||||||
COMPREHENSIVE INCOME (LOSS) |
$ |
4,621,372 |
$ |
3,836,680 |
3,562,229 |
10,999,645 |
||||||||||
Earnings per share: |
||||||||||||||||
Basic and diluted earnings per share |
$ |
0.17 |
$ |
0.11 |
$ |
0.19 |
$ |
0.28 |
||||||||
Weighted average number of shares |
||||||||||||||||
Basic and diluted |
26,661,499 |
26,661,499 |
26,661,499 |
26,661,499 |
||||||||||||
The accompanying notes in the Company's 10-Q are an integral part of these consolidated financial statements. |
SKYPEOPLE FRUIT JUICE, INC. |
|||||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS |
|||||||||
(Unaudited) |
|||||||||
For the Nine months |
|||||||||
2014 |
2013 |
||||||||
CASH FLOWS FROM OPERATING ACTIVITIES |
|||||||||
Net income |
$ |
5,510,759 |
$ |
8,198,186 |
|||||
Adjustments to reconcile net income to net cash provided by operating activities |
|||||||||
Depreciation and amortization |
3,031,314 |
3,084,199 |
|||||||
Deferred income tax assets |
(410,086) |
(328,769) |
|||||||
Changes in operating assets and liabilities |
|||||||||
Accounts receivable |
(12,813.534) |
32,292,692 |
|||||||
Other receivable |
(627,449) |
(724,588) |
|||||||
Advances to suppliers and other current assets |
668,853 |
14,436 |
|||||||
Inventories |
730,838 |
(131,997) |
|||||||
Accounts payable |
12,080,673 |
(9,740,930) |
|||||||
Accrued expenses |
5,305,632 |
227,166 |
|||||||
Income tax payable |
(608,156) |
(2,027,925) |
|||||||
Advances from customers |
60,930 |
520,020 |
|||||||
Net cash provided by operating activities |
12,929,774 |
31,382,490 |
|||||||
CASH FLOWS FROM INVESTING ACTIVITIES |
|||||||||
Refund of purchase deposit |
7,498,389 |
- |
|||||||
Additions to property, plant and equipment |
(16,430,606) |
(663,182) |
|||||||
Prepayment for other assets |
(28,184,348) |
(38,531,578) |
|||||||
Net cash used in investing activities |
(37,116,565) |
(39,194,760) |
|||||||
CASH FLOWS FROM FINANCING ACTIVITIES |
|||||||||
Dividend paid to non-controlling shareholder |
(4,410,222) |
- |
|||||||
Increase in restricted cash |
(11,635,476) |
(804,480) |
|||||||
Short-term notes payable |
12,123,678 |
1,480,242 |
|||||||
Proceeds from related party loan |
- |
8,000,000 |
|||||||
Proceeds from short-term bank loans |
20,302,162 |
13,649,887 |
|||||||
Repayment of short-term bank loans |
(20,673,500) |
(6,715,275) |
|||||||
Payment for security deposit of capital lease |
(3,148,902) |
- |
|||||||
Payment for capital lease |
(797,443) |
- |
|||||||
Repayment of related party loans |
(24,970) |
- |
|||||||
Net cash provided by (used in) financing activities |
(8,264,673) |
15,610,374 |
|||||||
Effect of change in exchange rate |
(558,140) |
1,818,168 |
|||||||
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS |
(33,009,604) |
9,616,272 |
|||||||
Cash and cash equivalents, beginning of period |
66,888,954 |
77,560,278 |
|||||||
Cash and cash equivalents, end of period |
$ |
33,879,350 |
$ |
87,176,550 |
|||||
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION |
|||||||||
Cash paid for interest |
$ |
2,553,422 |
$ |
852,705 |
|||||
Cash paid for income taxes |
$ |
3,172,447 |
$ |
5,293,700 |
|||||
SUPPLEMENTARY DISCLOSURE OF |
|||||||||
Transferred from other assets to property, |
$ |
1,324,438 |
$ |
318,606 |
|||||
Properties acquired from capital lease |
20,992,677 |
$ |
- |
||||||
The accompanying notes in the Company's 10-Q are an integral part of these consolidated financial statements. |
SOURCE SkyPeople Fruit Juice, Inc.
Related Links
http://www.skypeoplefruitjuice.com
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