News... REPORTS FIRST QUARTER 2007 RESULTS
Junan County, Shandong Province, June 11, 2007 -- Millennium Quest, Inc. (OTC Bulletin Board: MLQT.OB, the “Company”) a leading China-based food processing company engaged in the development, manufacture and sale of food products worldwide, today announced financial results for the first quarter of the Company’s 2007 fiscal year, ended March 31, 2007. The Company develops, manufactures and sells its food products through its subsidiaries under the brand name “Lorain Foods.”
Quarter to quarter comparison
For the three months ended March 31, 2007, the Company reported revenues of $11.9 million, an increase of 112.9% compared to the $5.6 million reported for the same period last year. Gross profits for the three months ended March 31, 2007, were $2.9 million, or 24.8% of sales, compared to gross profits of $1.3 million, or 23.3% of sales, for the same quarter last year. Total operating expenses for the three months ended March 31, 2007 were $0.49 million, or 4.1% of sales, compared to $0.66 million, or 11.8% of sales, for the same period last year. Net income for the three months ended March 31, 2007 was $1.5 million, an increase of 522.7% compared to net income of $0.25 million in the same period a year ago.
Balance sheet items
The Company’s cash and cash equivalents balances as of March 31, 2007 was $8.5 million, compared to cash and cash equivalents of $11.6 million as of December 31, 2006. As of March 31, 2007, total current assets were $35.7 million and stockholders equity was $5.6 million.
According to Chairman, President and CEO Si Chen, “We are extremely pleased with our first quarter results, and as the demand for our products remains strong we expect continued growth for the balance of the year.” Referring to a May 31, 2007 release describing a fire in the Company’s Beijing factory, Mr. Chen stated, “Despite the recent setback caused by the fire, we are quickly recovering. We are moving forward and taking the right steps to assure that the entire organization is focused totally on meeting all of our objectives.”
