ETLT- Much Much More attractive! HOUSTON, Aug 22, 2006 (BUSINESS WIRE) -- Eternal Technologies Group, Inc. (ETLT) reported net income,of $1,658,700 on sales of $10,370,137 for the three months ended June 30, 2006 or $.04 per share. This compares with net income of $1,875,575 on sales of $10,123,668 for the three months ended June 30, 2005 or $.06 per share. For the six months ended June 30, 2006 the company earned $2,199,499 on sales of $14,586,496 or $.05 per share. This compares with earnings of $1,829,860 on sales of $12,232,415 or $.06 per share for the six months ended June 30, 2005. Total assets for the company as of June 30, 2006 increased to $52,665,700 from $49,592,744 as of December 31, 2005 and shareholders equity increased to $50,909,618 as of June 30, 2006 from $47,639,463 as of December 31, 2005.
Cash and cash equivalents now equal more than $.91 per issued and outstanding shares. Revenues for the six months ended June 30, 2006 increased by $2,354,081 or 19.2% to $14,586,496 from $12,232,415 for the corresponding period of the prior year. This increase is primarily attributable to the addition of E-Sea, which generated revenues of $2,064,168.
Cost of sales for the six months ended June 30, 2006 increased by $1,346,484 or 14.9% to $10,384,268 from $8,037,784 for the corresponding period of the prior year. This increase resulted from the addition of E-Sea, which had cost of sales of $787,612, and from changes in the sales mix of cattle embryo transfers, sheep embryo transfers and sales of roll mutton.
Depreciation and amortization expenses increased by $150,651 or 39.6% to $530,986 from $380,335 for the corresponding period of the prior year. This increase is attributable to the acquisition of E-Sea.
Selling and administrative expenses increased by $405,643 or 44% to $1,314,530 from $963,648 for the corresponding period of the prior year. This increase resulted primarily from an increase in professional fees, but also included an increase in salaries related to board approved changes in employees salaries and an increase in public relation fees.
For the six months ended June 30, 2005 the company experienced a decrease in other income of $60,172. This resulted from a decrease in interest expense of $54,761 for the six-month period ended June 30, 2006 due to debt conversions.
The Company provided taxes on its income from the E-Sea operations of $142,126 for the six-month period ended June 30, 2006. E-Sea was not part of the affiliated group during the corresponding period of the prior year.
As a result of the foregoing, the Company had net income of $2,199,499 or $.06 per share for the six months ended June 30, 2006 compared to net income of $1,829,860 or $.06 per share for the corresponding period of the prior year
About Eternal Technologies
Eternal is a major agricultural genetics and biopharmaceutical R&D firm operating in China with the support of the Chinese Government. Eternal's animal breeding division has a strong asset base, cash position and net income. Eternal has become one of China's leading institutions for biopharmaceutical and biotech research, pure breed cultivation and breed stock production. The Company has secured a key market niche by commercializing gene engineering technologies and providing superior breeding stock, allowing China's citizens the ability to improve their living standards. With the world's largest population, a double-digit national growth rate and entry into the WTO, Eternal Technologies has a playing field set for tremendous opportunity. As a prominent player in the agricultural genetics industry, cash in the bank and an untapped market, Eternal has the potential to become a major player in China's national growth.
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