Tiens Biotech Group (USA) Reports Third Quarter and Nine-Month Results

2009年11月14日 05:15美通社 】 【打印共有评论0

NEW YORK, Nov. 14 /PRNewswire-Asia/ -- Tiens Biotech Group (USA), Inc. (the "Company" or "Tiens", NYSE AmEX: TBV), hTTp://www.tiens-bio.com , today announced financial results for the third quarter and nine montHS ended September 30, 2009.

Revenue for the third quarter of 2009 was $9.4 million, compared to $26.2 million for the third quarter of 2008.

Net income for the third quarter of 2009 was $2.9 million, or $0.03 per share, compared to net income of $14.6 million, or $0.20 per share, for the third quarter of 2008.

Results for the third quarter of 2009 reflect a decrease in revenue in China to $4.7 million, compared to $14.6 million for the same period in 2008. The revenue decrease IS attributed to a deCLine in domestic distributors' demand in the third quarter of 2009 after stocking up on produCTS in the second quarter of 2009 due to the Company's increased marketing efforts in the second quarter. In addition, revenue for the third quarter of 2008 was unusually high due to a future price increase announcement by Tianshi Engineering during that quarter.

For the third quarter of 2009, international revenue was $4.8 million, compared to $11.6 million for the same period in 2008. The decrease in international revenue was mainly due to a decrease in sales in the Asia-Pacific region by $6.1 million and the Europe-Asia region by $2.5 million in the third quarter of 2009, as compared to the third quarter of 2008. International revenue results for the third quarter of 2009 reflect a decline in customer demand for the period as customers stocked up on certain products during the first two quarters of 2009. Export restrictions were reduced in late 2008 as China's AdMINIstration of Quality Supervision, Inspection and Quarantine completed its national campaign against unsafe food and substandard products. As a result of reduced export restrictions, customers were able to purchase more products in the first two quarters of 2009.

Revenue for the nine months ended September 30, 2009 was $48.2 million, compared to $58.7 million for the nine months ended September 30, 2008, reflecting the aforementioned decrease in sales in China.

Net income for the nine months ended September 30, 2009 was $22.2 million, or $0.29 per share, compared to $24.8 million, or $0.32 per share for nine months ended September 30, 2008.

For the nine months ended September 30, 2009, revenue in China was $17.1 million, compared to $29.2 million for the nine months ended September 30, 2008 reflecting the aforementioned reduction in distributors' product demand in the third quarter.

For the nine months ended September 30, 2009, international revenue was $31.2 million, compared to $29.5 million for the same period in 2008. The increase in international revenue for the nine months of 2009 reflects a strong increase in international sales in the first quarter of 2009 after China's Administration of Quality Supervision, Inspection and Quarantine ceased its export restrictions. From August 2007 to the end of 2008, it implemented an ongoing national campaign in China against unsafe food and substandard products, which resulted in a general SLow-down and backlog of export clearances for Chinese food products.

Other Highlights

Cost of sales for the third quarter of 2009 was $3.1 million, compared to $6.6 million for the same period in 2008. The decrease was mainly due to the decrease in revenue for the third quarter of 2009.

Gross profit for the third quarter of 2009 was $6.3 million, compared to $19.6 million for the same period in 2008. The gross profit margin for the third quarter of 2009 was 66.7%, compared to 74.8% for the same period in 2008.

Selling, general and administrative expenses for the third quarter of 2009 were $2.9 million, compared to $4.6 million for the same period in 2008. The selling, general and administrative expenses as a percentage of sales was 30.9% for the third quarter of 2009 compared to 17.4% for the same period in 2008. This increase was primarily due to the decrease in revenue for the third quarter of 2009 compared to the same period of 2008.

Cost of sales for the nine months ended September 30, 2009, was $15.0 million, compared to $16.9 million for the same period in 2008. Cost of sales for the period decreased at a slighTLy lower rate than revenue, primarily due to fixed coSTS, which do not increase or decrease in line with revenue changes.

Gross profit for the nine months ended September 30, 2009 was $33.2 million, compared to $41.8 million the same period in 2008, and the gross profit margin was 68.9% compared to 71.3% for the same period in 2008. These decreases were mainly due to the decrease of revenue and the increase of fixed cost as a percentage of revenue.

Selling, general and administrative expenses for the nine months ended September 30, 2009 were $10.1 million, compared to $12.9 million in the same period in 2008. For the nine months ended September 30, 2009, selling, general and administrative expenses as a percentage of sales was 20.9%, compared to 22.0% for the same period in 2008. This decrease was primarily due to the decrease in selling, general and administrative expenses for the third quarter of 2009.

As of September 30, 2009, Tiens had $123.5 million of retained earninGS and total shareholders' equity of $170.5 million.

Jinyuan Li, Chairman, President and CEO of Tiens, said, "We are confident that international and domestic sales will return to, and potentially exceed, previous leveLS as customers and distributors begin to replenish stored up products. We will continue to implement our strategic plans for long-term growth and remain committed to expanding our international customer base and gaining greater market share in China."

About Tiens Biotech Group (USA), Inc. http://www.tiens-bio.com

Tiens Biotech Group (USA), Inc. (NYSE Amex: TBV) conducts its business operations from Tianjin, People's Republic of China. Tiens primarily engages in the research, development, manufacturing, and marketing of nutrition supplement products, including wellness products and dietary supplements.

Tiens derives its revenues principally from product sales to affiliated companies in China and internationally in 46 countries. Since its establishment, Tiens has developed and produced 37 nutrition supplements, which include wellness products and dietary supplements. Tiens develops its products at its own product research and development center, which employs highly qualified professionals in the fields of pharmacology, biology, chemistry and fine chemistry. Tiens has obtained all required certificates and approvals from government regulatory agencies to manufacture and sell its products in China.

In China, Tiens conducts the marketing and sales of its products through its affiliated company, Tianshi Engineering. Tianshi Engineering markets and sells Tiens' products in China through chain stores, domestic affiliated companies, and its 98 branches.Outside of China, Tiens sells its products to affiliated companies that in turn sell through an extensive direct sales force, or multi-level marketing sales force. The Company's direct sales marketing program is subject to governmental regulation in each of these countries.

Certain statements in this press release constitute "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities and Exchange Act of 1934. Such forward-looking statements are not necessarily indicative of future financial results, and may involve known and unknown risks, uncertainties and other factors, which may cause the actual results, performance or achievements of the Company, to be materially different from any future results, performance, or achievements expressed or implied by such forward-looking statements. The Company's future operating results are dependent upon many factors, including but not limited to: (i) the Company's ability to obtain sufficient capital or a strategic business arrangement to fund its expansion plans; (ii) the Company's ability to build the management and human resources and infrastructure necessary to support the growth of its business; (iii) competitive factors and developments beyond the Company's control; (iv) whether the Company continues to experience delays in the export clearance of its products; (v) whether Tianshi Engineering, the Company's affiliate which sells its products in China, obtains a direct selling license in China; and (vi) other risk factors diSCussed in the Company's periodic filings with the Securities and Exchange Commission which are available for review at http://www.sec.gov under "Search for Company Filings."

- Tables Follow -

TIENS BIOTECH GROUP (USA), INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME AND OTHER COMPREHENSIVE INCOME

FOR THE THREE MONTHS AND NINE MONTHS ENDED SEPTEMBER 30, 2009 AND 2008

(Unaudited)

Three months ended Nine months ended

September 30,September 30,

2009 2008 2009 2008

REVENUE -

RELATED PARTIES$9,439,739$26,195,853$48,228,320$58,671,121

COST OF SALES -

RELATED PARTIES 3,144,650 6,606,502 14,997,118 16,850,267

GROSS PROFIT 6,295,089 19,589,351 33,231,202 41,820,854

SELLING, GENERAL

AND ADMINISTRATIVE

EXPENSES 2,916,202 4,562,946 10,061,729 12,898,742

INCOME FROM

OPERATIONS 3,378,887 15,026,405 23,169,473 28,922,112

Interest

expense(40,363)(67,207)(146,180)(199,869)

Interest

income 76,154 227,326 262,701 733,175

Other

expense(16,122)(412,620)(89,554)(1,399,484)

OTHER (EXPENSE)

INCOME, NET 19,669(252,501)26,967(866,178)

INCOME BEFORE

INCOME TAXES 3,398,556 14,773,904 23,196,440 28,055,934

INCOME TAXES 544,688 152,990 1,027,404 3,297,438

NET INCOME 2,853,868 14,620,914 22,169,036 24,758,496

LESS: Net income

attributable to

the

noncontrolling

interest(617,638)(92,326)(1,163,683)(1,979,405)

NET INCOME

ATTRIBUTABLE TO

THE COMPANY 2,236,230 14,528,588 21,005,353 22,779,091

OTHER

COMPREHENSIVE

INCOME

Foreign

currency

translation

adjustment 170,638 807,035 381,630 7,906,663

COMPREHENSIVE

INCOME

ATTRIBUTABLE

TO THE

COMPANY 2,406,868 15,335,623 21,386,983 30,685,754

COMPREHENSIVE

INCOME

ATTRIBUTABLE

TO THE

NON-CONTROLLING

INTEREST 629,028 94,943 1,188,923 2,432,607

COMPREHENSIVE

INCOME$3,035,896$15,430,566$22,575,906$33,118,361

EARNINGS PER

SHARE, BASIC

AND DILUTED$0.03$0.20$0.29$0.32

WEIGHTED

AVERAGE SHARES

OUTSTANDING 71,333,586 71,333,586 71,333,586 71,333,586

TIENS BIOTECH GROUP (USA), INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

AS OF SEPTEMBER 30, 2009 AND DECEMBER 31, 2008

September 30,December 31,

2009 2008

(Unaudited)

ASSETS

CURRENT ASSETS:

Cash$9,518,495$20,992,573

Cash related to assets held for sale 23,984,135 23,861,938

Total cash 33,502,630 44,854,511

Accounts receivable, trade -

related parties, net of allowance

for doubtful accounts of $208,535 and

$1,108,789 as of September 30, 2009

and December 31, 2008, respectively 14,215,995 23,941,431

Inventories 5,595,637 8,365,607

Other receivables 932,781 813,591

Other receivables - related parties 13,833,872 15,729,076

Employee advances 193,525 112,591

Prepaid expenses 639,435 301,898

Prepaid taxes 1,489,956 1,531,207

Other assets held for sale 10,839,419 10,904,842

Total current assets 81,243,250 106,554,754

PROPERTY, PLANT AND EQUIPMENT, net 10,445,464 10,274,643

OTHER ASSETS:

Construction in progress 108,687,141 72,300,104

Construction deposits 2,980,428 2,586,302

Intangible assets, net 12,939,643 13,137,195

Other assets 8,772,637 87,541

Total other assets 133,379,849 88,111,142

Total assets$225,068,563$204,940,539

TIENS BIOTECH GROUP (USA), INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

AS OF SEPTEMBER 30, 2009 AND DECEMBER 31, 2008

LIABILITIES AND SHARE HOLDERS' EQUITY

September 30,December 31,

2009 2008

(Unaudited)

CURRENT LIABILITIES:

Accounts payable$4,690,894$6,283,849

Advances from customers - related parties 4,056,804 3,239,650

Wages and benefits payable 724,125 1,449,146

Other taxes payable--117,818

Contractor deposits 249,195 163,248

Contractor payables 18,214,994 11,871,456

Other payables 1,632,208 1,933,743

Other payables - related parties 216,941 6,373,900

Current portion of long-term debt,

related party 2,130,000 2,130,000

Liabilities directly associated with

assets classified as held for sale 114,910 122,047

Total current liabilities 32,030,071 33,684,857

NON-CURRENT LIABILITIES

Long-term debt, net of current portion,

related party 1,072,742 2,137,742

Deferred income 11,235,733 11,208,844

Total non current liabilities 12,308,475 13,346,586

Total liabilities 44,338,546 47,031,443

EQUITY:

Shareholders' equity of the Company:

Common stock, $0.001 par value,

250,000,000 shares authorized,

71,333,586 issued and outstanding 71,334 71,334

Paid-in-capital 9,461,369 9,234,123

Statutory reserves 13,217,217 9,420,783

Retained earnings 123,534,272 106,325,356

Accumulated other comprehensive income 24,232,692 23,851,062

Total shareholders' equity of the

Company 170,516,884 148,902,658

Noncontrolling interest 10,213,133 9,006,438

Total equity 180,730,017 157,909,096

Total liabilities and equity$225,068,563$204,940,539

TIENS BIOTECH GROUP (USA), INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2009 AND 2008 (UNAUDITED)

Nine months ended September 30,

2009 2008

CASH FLOWS FROM OPERATING ACTIVITIES:

Net income$22,169,036$24,758,496

Adjustments to reconcile net income

to cash provided by (used in)

operating activities:

Provision for doubtful accounts(902,297)89,913

Depreciation 1,662,206 2,063,597

Amortization 291,418 226,559

Interest income(9,357)(138,328)

Gain on sale of assets(14,846)(8,644)

(Increase) decrease in assets:

Accounts receivable, trade -

related parties 10,678,476(25,058,774)

Accounts receivable, trade - third

parties--109,101

Other receivables(121,058)639,999

Other receivables - related parties(1,306,527)452,044

Inventories 2,801,809(1,090,429)

Employee advances(80,873)(345,666)

Prepaid expense(336,620)347,689

Increase (decrease) in liabilities:

Accounts payable(1,687,613)3,098,509

Advances from customers - related

parties 808,830 1,233,804

Wages and benefits payable(768,334)(381,633)

Other taxes payable(31,337)(1,834,741)

Other payables(176,274)(86,004)

Other payables - related parties(76,484)282,945

Net cash provided by operating

activities 32,900,155 4,358,437

CASH FLOWS FROM INVESTING ACTIVITIES:

Collection from loans to local

government 105,208 454,941

Repayment of loan from related

parties--2,155,702

Acquisition of intangible assets--(6,037,069)

Construction deposits(3,465,755)(3,363,647)

Contractor deposits 85,498(390,634)

Addition to construction in

progress(26,936,754)(18,573,180)

Equipment deposits(8,700,872)-

Proceeds from sales of

properties 17,041 61,797

Purchase of equipment and

automobiles(1,755,815)(574,822)

Net cash used in investing

activities(40,651,449)(26,266,912)

CASH FLOWS FROM FINANCING ACTIVITIES:

Loan from (repayment to) related

parties(3,946,050)6,578,584

Payments on long term debt, related

party--(1,065,000)

Payments to minority interest

shareholder--(5,123,520)

Increase in paid in capital 245,030--

Increase in deferred income--5,861,232

Net cash provided by (used in)

financing activities(3,701,020)6,251,296

EFFECT OF EXCHANGE RATE CHANGES

ON CASH 100,433 3,242,494

DECREASE IN CASH(11,351,881)(12,414,685)

CASH, beginning of period 44,854,511 54,081,848

CASH, end of period$33,502,630$41,667,163

Supplemental disclosure of cash flow

information

Cash paid during the period for:

Interest$105,817$132,662

Income taxes$871,764$3,857,173

TIENS BIOTECH GROUP (USA), INC. AND SUBSIDIARIES

REVENUE BY REGION

(Unaudited)

Three months

ended September 30,

2009 2008 Change

China$4,663,939$14,576,060-68.0%

International$4,775,800$11,619,793-58.9%

Total$9,439,739$26,195,853-64.0%

Nine months

ended September 30,

2009 2008 Change

China$17,076,162$29,191,771-41.5%

International$31,152,158$29,479,350 5.7%

Total$48,228,320$58,671,121-17.8%

SOURCE Tiens Biotech Group (USA), Inc.

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