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SkyPeople Fruit Juice Reports Third Quarter 2012 Financial Results

Date : 11/13/2012 @ 4:30PM
Source : PR Newswire (US)
Stock : Skypeople Fruit Juice, Inc. (MM) (SPU)
Quote : 1.06  0.02 (1.92%) @ 5:40AM
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SkyPeople Fruit Juice Reports Third Quarter 2012 Financial Results

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SkyPeople Fruit Juice Reports Third Quarter 2012 Financial Results

XI'AN, China, Nov. 13, 2012 /PRNewswire-FirstCall/ -- SkyPeople Fruit Juice, Inc. (NASDAQ: SPU) ("SkyPeople" or "the Company"), a producer of fruit juice concentrates, fruit juice beverages and other fruit-related products, today announced its financial results for the third quarter ended September 30, 2012.

Third Quarter 2012 Highlights:

  • Total revenue was $28.6 million, an increase of 64% year-over-year
  • Revenue of concentrated pear juice increased 459% to $11.4 million year-over-year
  • Revenue of fruit juice beverages increased 102% to $10.5 million year-over-year
  • Net income attributable to SkyPeople Fruit Juice, Inc. increased 177% to $5.0 million year-over-year
  • Cash flow from operations for nine months ended September 30, 2012 was $20.3 million
  • Cash and cash equivalents were $80.9 million as of September 30, 2012

"We are very pleased to have achieved strong year-to-year growth in revenues and net income for the third quarter of 2012. Our strong results were driven by exceptional performance in two of our key product segments, concentrated pear juice and fruit juice beverages," said Mr. Yongke Xue, Chief Executive Officer of SkyPeople. "Our overall profitability improved significantly as well on the basis of an expansion of gross margins attributable to better raw material costs as well as lower operating expenses. We believe that our strategy of diversifying our product mix has been very effective in that it provides us with flexibility to shift our manufacturing focus towards better performing products so as to optimize our operating performance. "

CEO Xue continued, "As recently announced, we are further diversifying our business into the orange products segment. We recently entered into an agreement with the Yidu Municipal People's Government in Hubei Province, one of the biggest citrus production provinces in China, with regard to an orange comprehensive deep processing project. The project is estimated to require a total investment of approximately $61 million by the Company that includes land use rights, development of an orange plantation and the construction of a processing plant, a storage facility and other general purpose facilities. We believe that this strategic expansion is complementary to our existing product platform. It is expected to broaden our product mix, enhance our competitive advantage and further mitigates both the regional and seasonal cyclicality of our major fruit product segments." 

"We will work hard to successfully implement this new venture and hope to close the year 2012 on a positive note," CEO Xue concluded.

Third Quarter 2012 Financial Results

Revenue for the three months ended September 30, 2012 was $28.6 million, an increase of 64%, as compared to $17.4 million for the same period in 2011. This increase was primarily due to an increase in the sales of concentrated pear juice and fruit juice beverages, which offset a decrease in the sales of concentrated apple juice and apple aroma and concentrated kiwifruit juice and kiwifruit puree.

Third Quarter 2012 Revenue by Segment (in thousands)

 


Three Months Ended September 30,


Change


2012


2011


%

Concentrated apple juice and apple aroma

$3,962


$8,782


(55)%

Concentrated kiwifruit juice and kiwifruit puree

399


499


(20)%

Concentrated pear juice

11,382


2,036


459%

Fruit juice beverages

10,460


5,188


102%

Fresh fruits and vegetables

707


897


(21)%

Other

1,653


35


4,623%

Total

$28,563


$17,437


64%

Gross profit was $8.5 million, an increase of 76% from $4.8 million in the third quarter of 2011.  Gross profit margin was 30% as compared to 28% for the same period of 2011. The year-over-year increase in gross margin was attributable to a substantial rise in gross margin of the Company's fruit juice beverages segment and concentrated pear juice segments, which offset declines in gross margins of its other product segments.

Third Quarter 2012 Gross Profit by Segment (in thousands)

 




Three Months Ended September 30,


2012



2011


Gross
Profit


Gross
Margin


Gross
Profit


Gross
Margin

Concentrated apple juice and apple aroma

679


17%


2,045


23%

Concentrated kiwifruit juice and kiwifruit puree

189


47%


267


54%

Concentrated pear juice

3,469


30%


516


25%

Fruit juice beverages

3,951


38%


1,582


30%

Fresh fruits and vegetables

218


31%


424


47%

Other

19


1%


7


20%

Total

8,525


30%


4,841


28%










Operating expenses for the third quarter of 2012 decreased 8% to $1.8 million, or 6% of sales, compared to $2.0 million, or 11% of sales for the same period of 2011. General and administrative expenses decreased 21% to $1.0 million, mainly due to decreases in legal fees related to currently pending litigations. Selling expenses increased 15% to $0.7 million, which was mainly due to an increase in the headcount of the Company's sales force.

Income from operations for the third quarter of 2012 increased 136% to $6.7 million as compared to $2.8 million for the same period of 2011.

Other income was $0.5 million for the third quarter of 2012, as compared to other expense of $0.2 million in the same period of 2011. The increase in other income was primarily due to an increase in the subsidy income of $0.6 million in the third quarter as a result of the value-added tax rebates provided on the Company's exports, which significantly increased in the third quarter of 2012 from the corresponding period of 2011.

Net income attributable to common shareholders and diluted earnings per share for the third quarter of 2012 increased 177% to $5.0 million and $0.19, respectively, compared to $1.8 million and $0.07, respectively, for the third quarter of 2011.

Nine-Month 2012 Financial Results

Revenue for the nine months ended September 30, 2012 increased 15% to $56.4 million, from $49.1 million for the same period of 2011. Gross profit decreased to $17.5 million from $17.6 million in the corresponding period of 2011.  Operating income declined to $12.2 million for the first nine months of 2012 from $12.4 million for the same period of 2011.  Net income attributable to common shareholders and earnings per share for the first nine months of 2012 increased to $9.4 million, or $0.35 per diluted share compared to net income attributable to common shareholders of $8.6 million, or $0.32 per diluted share, for the same period of 2011.

Conference Call

The Company will hold a conference call on Wednesday, November 14, 2012 at 9:00 a.m. Eastern Time to discuss its financial results for the third quarter ended September 30, 2012.

The Company's CEO, Mr. Yongke Xue, and CFO, 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.  When prompted by the operator, mention the conference Pass Code.

Date:

Wednesday, November 14, 2012

Time:

9:00 a.m. Eastern Time, US

Conference Line Dial-In:                          

+1-855-880-8437

International Dial-In:

+1-931-229-4159

Conference Pass Code:

70094777

To access the replay, please dial 1-855-859-2056 within the United States or 1-404-537-3406 when dialing internationally, and enter the pass code 70094777 for the replay. The replay will be available on November 14 at 12:00 pm.

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, 2011 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

Xin Ma, Chief Financial Officer

SkyPeople Fruit Juice, Inc.

Tel:   China + 86 - 29-8837-7161

Email: oliver.x.ma@skypeoplefruitjuice.com

Web: http://www.skypeoplefruitjuice.com 

-Financial Tables Follow-


SKYPEOPLE FRUIT JUICE, INC.

CONSOLIDATED BALANCE SHEETS











September 30,


December 31,



2012


2011



(Unaudited)




ASSETS














CURRENT ASSETS







    Cash and cash equivalents


$

80,869,190


$

61,154,007

    Restricted cash



31,541



316,396

    Accounts receivables, net of allowance of $46,234
        and $46,529 as of September 30, 2012 and December 31,
        2011, respectively



29,245,668



35,999,858

    Other receivables



304,310



192,032

    Inventories



6,382,796



6,126,376

    Deferred tax assets



31,647



174,285

    Advances to suppliers and other current assets



114,080



66,528

TOTAL CURRENT ASSETS



116,979,232



104,029,482








PROPERTY, PLANT AND EQUIPMENT, NET



49,781,361



44,277,228

LAND USE RIGHT, NET



7,695,834



6,673,496

OTHER ASSETS



347,494



5,323,162

TOTAL ASSETS


$

174,803,921


$

160,303,368















LIABILITIES














CURRENT LIABILITIES







    Accounts payable


$

6,788,625


$

2,972,916

    Accrued expenses



2,000,465



4,701,054

    Income tax payable



1,728,077



1,910,779

    Advances from customers



-



178,857

    Short-term bank loans



11,559,691



6,425,713

    Short-term notes payable



-



284,654

TOTAL CURRENT LIABILITIES



22,076,858



16,473,973








SHAREHOLDERS' EQUITY














SkyPeople Fruit Juice, Inc, Stockholders' equity







    Series B Preferred stock, $0.001 par value;
       10,000,000 shares authorized; 230,147 shares
       and 1,456,647 shares issued and outstanding as of
       September 30, 2012 and December 31, 2011,
       respectively



230



1,457

    Common stock, $0.001 par value; 66,666,666
        shares authorized; 26,508,068 shares and 
        25,690,402 shares issued and outstanding as of
        September 30, 2012 and  December 31, 2011
        respectively



26,508



25,690

    Additional paid-in capital



59,189,783



59,189,374

    Retained earnings



73,975,364



64,623,453

    Accumulated other comprehensive income



13,216,615



14,086,620

    Total SkyPeople Fruit Juice, Inc. stockholders'
        equity



146,408,500



137,926,594

    Non-controlling interests



6,318,563



5,902,801

TOTAL EQUITY



152,727,063



143,829,395

TOTAL LIABILITIES AND EQUITY


$

174,803,921


$

160,303,368

 

SKYPEOPLE FRUIT JUICE, INC.

CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME

(Unaudited)















For the Three Months Ended September 30,



For the Nine Months Ended September 30,



2012


2011



2012



2011

Revenue

$

28,563,469


$

17,437,105


$

56,394,242


$

49,062,726

Cost of goods sold


20,038,559



12,595,983



38,861,942



31,448,900

Gross profit


8,524,910



4,841,122



17,532,300



17,613,826













Operating Expenses












    General and administrative expenses


960,617



1,217,206



3,091,992



3,042,100

    Selling expenses


732,751



638,211



1,779,867



1,741,814

    Research and development expenses


142,077



145,413



427,447



420,121

Total operating expenses


1,835,445



2,000,830



5,299,306



5,204,035













Income from operations


6,689,465



2,840,292



12,232,994



12,409,791













Other income (expenses)












    Interest income


77,846



81,720



234,551



223,806

    Subsidy income


615,997



50,632



1,699,108



622,396

    Interest expenses


(213,847)



(308,447)



(616,991)



(648,635)

    Others incomes


-



(118)



(1,000)



39,454

Total other income (expenses)


479,996



(176,213)



1,315,668



237,021













Income before income tax


7,169,461



2,664,079



13,548,662



12,646,812

    Income tax provision


1,917,425



726,239



3,710,098



3,419,625

Net income


5,252,036



1,937,840



9,838,564



9,227,187













Less: Net income attributable to non-controlling interests


219,934



124,420



486,653



633,642













NET INCOME ATTRIBUTABLE TO SKYPEOPLE FRUIT JUICE, INC. 

$

5,032,102


$

1,813,420


$

9,351,911


$

8,593,545













Earnings per share:












    Basic earnings per share

$

0.19


$

0.07


$

0.35


$

0.32

    Diluted earnings per share

$

0.19


$

0.07


$

0.35


$

0.32













Weighted average number of 
shares outstanding










    Basic


26,251,920



25,690,402



25,922,298



25,690,402

    Diluted


26,661,500



26,661,500



26,661,500



26,661,500













Comprehensive Income












Net income

$

5,252,036


$

1,937,840


$

9,838,564


$

9,227,187

Foreign currency translation adjustment


(311,480)



1,342,180



(870,005)



4,293,977

Total Comprehensive income

$

4,940,556


$

3,280,020


$

8,968,559


$

13,521,164

Comprehensive income attributable to non-controlling interests


172,179



182,649



415,762



800,375

Comprehensive income attributable to SkyPeople Fruit Juice, Inc.

$

4,768,377


$

3,097,371


$

8,552,797


$

12,720,789


SKYPEOPLE FRUIT JUICE, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)










For the Nine Months Ended September 30,



2012


2011

CASH FLOWS FROM OPERATING ACTIVITIES







Net income


$

9,838,564


$

9,227,187

Adjustments to reconcile net income to net cash provided by operating activities







    Depreciation and amortization



3,376,671



2,674,081

    Deferred income tax assets



142,638



-

Changes in operating assets and liabilities







    Accounts receivable



6,551,325



25,987,583

    Other receivable



(113,858)



19,660

    Advances to suppliers and other current assets



(47,955)



(399,945)

    Inventories



(296,284)



(2,442,658)

    Accounts payable



3,849,078



(398,972)

    Accrued expenses



(2,683,737)



(1,491,478)

    Income tax payable



(170,942)



(3,825,519)

    Advances from customers 



(178,401)



(535,017)

Net cash provided by operating activities



20,267,099



28,814,922








CASH FLOWS FROM INVESTING ACTIVITIES







    Additions to property, plant and equipment



(3,829,822)



(138,927)

    Additions to construction progress



-



(46,437)

    Additions to land use right



(1,204,179)



-

    Prepayment for other assets



(256,585)



(5,894,322)

Net cash used in investing activities



(5,290,586)



(6,079,686)








CASH FLOWS FROM FINANCING ACTIVITIES







  Decreased(Increased) in restricted cash



283,929



(679,744)

    Short-term notes payable



(283,929)



657,590

    Proceeds from short-term bank loans



6,332,120



7,733,603

    Repayment of short-term bank loans



(1,137,847)



(5,181,670)

Net cash provided by financing activities



5,194,273



2,529,779








Effect of change in exchange rate



(455,603)



1,809,779








NET INCREASE IN CASH AND CASH EQUIVALENTS



19,715,183



27,074,794

    Cash and cash equivalents, beginning of period



61,154,007



49,350,385

    Cash and cash equivalents, end of period



80,869,190



76,425,179








SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION







    Cash paid for interest



640,184



648,635

    Cash paid for income taxes



3,740,987



7,245,144








SUPPLEMENTARY DISCLOSURE OF SIGNIFICANT NON-CASH TRANSACTION







    Transferred from other assets to property, plant and equipment and construction in process

$

5,217,366


$

457,070

The notes in the Company's 10-Q are an integral part of these consolidated financial statements.

SOURCE SkyPeople Fruit Juice, Inc.

Copyright 2012 PR Newswire



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