Company update: Skystar Bio-Pharmaceutical Company Q3
Skystar Bio-Pharmaceutical Company, a China-based producer and distributor of veterinary medicines, vaccines, micro-organisms and feed additives, reports record quarterly revenue of $12.78 million and adjusted net income of $4.25 million.
Third quarter (ending 30 Sept.) 2009 highlights:
- Revenue increased 27.1% period over period to $12.78 million.
- Gross margin improved to 52.2% from 51.6% in the third quarter of 2008.
- Net income improved to $5.35 million which includes a $1.09 million unrealized gain from the change in the fair value of the Company's warrants, or $0.77 per share, compared with net income of $3.47 million or $0.93 per share in the third quarter of 2008.
- Adjusted net income increased 22.7% to 4.25 million, or $0.61 per share, compared with $3.47 million or $0.93 per share, in the third quarter of 2008.
- The basic weighted average shares outstanding increased by 86.6% as a result of our recent offering while the adjusted earnings per share only decreased by 34.4%.
- $14.80 million in cash and restricted cash and net current assets of $32.40 million as of September 30, 2009.
Third quarter and recent business highlights:
- Awarded High Technology Enterprise Certificate, which has extended Skystar’s 15% preferential income tax rate.
- Introduced "SkyWing" Series of 18 new poultry medicines.
- Expanded micro-organism product line offering with three new products.
- Secured local government contracts and expanded distribution of Company's industry-leading veterinary medication.
- Initiated pre-production field trials of drug to boost the immune system of and treat viral diseases in livestock.
- Approved a two-for-one forward split of the Company's outstanding common stock and increased the Company's authorized common stock from 20 million shares to 40 million shares.
Weibing Lu, Chairman and Chief Executive Officer, commented, "Our quarterly revenue and margins in the third quarter reflect improved product sales across our product lines."
"We are on track with our expansion initiatives to increase our vaccine and micro-organism production capacity by the end of the year.
“With plans to begin production late in the fourth quarter, we expect that in 2010 we will effectively increase our vaccine revenue to $14 million with 60-70% margins and increase our micro-organism revenue by $2.7 million with gross margins of approximately 70%.
“In line with our anticipated growth, we approved a forward stock split earlier this month, which we believe will increase liquidity and offer an optimal entry point for investors as we continue to grow our business and create additional shareholder value," Lu concluded.
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