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.