Attached files
| file | filename |
|---|---|
| 8-K - Shiner International, Inc. | v176597_8k.htm |
| EX-99.2 - Shiner International, Inc. | v176597_ex99-2.htm |
Exhibit
99.1
Shiner
International, Inc. Announces Fourth Quarter and Fiscal Year-End 2009 Financial
Results
Haikou,
CHINA - March 8, 2010 –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.
1
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.
2
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 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 | |||||||
###
3
Contact:
Shiner
International, Inc.
Jeffrey
T. Roney
C.F.O.
Email:
jeffrey.roney@shinerinc.com
Phone :
(434) 531 4146
4
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 | ||||||
|
Additonal
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 | ||||
5
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 | |||
6
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 | ||||
7