Long Term Investment, Biotech & High Yield Dividend Stocks

[califax]

JGBO -

18.05.2009 16:51
Jiangbo Pharmaceuticals Reports Results for the Third Quarter of its Fiscal Year 2009

http://www.finanznachrichten.de/nachrichten-2009-05/13940683-jiangbo-pharmaceuticals-reports-results-for-the-third-quarter-of-its-fiscal-year-2009-008.htm

LAIYANG, China, May 18 /PRNewswire-Asia-FirstCall/ -- Jiangbo Pharmaceuticals, Inc. (BULLETIN BOARD: JGBO) ('Jiangbo' or the 'Company'), a U.S. pharmaceutical company with its principal operations in the People's Republic of China, today announced its financial results for the third quarter ended March 31, 2009 of its fiscal year 2009.


Third Quarter of Fiscal Year 2009 Highlights

-- Total revenue, which reflects newly associated expense restructuring, was $25.7 million, compared to $28.1 million in the corresponding quarter of 2008

-- Gross profit was $18.9 million, compared to $21.8 million in the corresponding quarter of 2008, and gross margin was 73.4% compared to 77.4% in the corresponding quarter of 2008

-- Operating income was $13.3 million, a 53.6% increase from $8.7 million for the three months ended March 31, 2008

-- Net income was $8.9 million, or $0.44 per fully diluted share, up from $4.5 million, or $0.46 per fully diluted share, for the three months ended March 31, 2008

-- Non-GAAP adjusted net income was $10.0 million, or $0.97 per weighted average share for the three months ended March 31, 2009, up 66.5% from non-GAAP adjusted net income of $6.0 million, or $0.61 per weighted average number of shares, for the quarter ended March 31, 2008

-- Acquired Shandong Hongrui Pharmaceutical Factory ("Hongrui") for approximately $11.2 million consisting of RMB58.6 million in cash (approximately $8.6 million) and 643,651 shares of Jiangbo's common stock amounting to approximately $2.6 million

-- Obtained the legal rights to manufacture and distribute Hongrui's 22 Traditional Chinese Medicines

-- Restructured its sales network to distribute products through 28 large regional distributors

-- Changed the corporate name from Genesis Pharmaceuticals Enterprises, (News) Inc. to 'Jiangbo Pharmaceuticals, Inc.' and its stock symbol from 'GNPH' to 'JGBO'.

-- Launched a new website: http://www.jiangbopharma.com/


'Jiangbo had strong financial performance in the third quarter of our fiscal year 2009. Significant increases in sales of Radix Isatidis Dispersible Tablets and Baobaole Chewable Tablets, both of which are Traditional Chinese Medicines, contributed to revenue and operating income growth,' said Mr. Wubo Cao, Chairman and Chief Executive Officer of Jiangbo.

Third Quarter of Fiscal Year 2009 Results

Total revenue for the three months ended March 31, 2009 was $25.7 million, compared to $28.1 million for the three months ended March 31, 2008.

In January 2009, Jiangbo restructured its distribution and sales system to concentrate on using 28 large independent regional distributors. The independent distributors agreed to take on higher direct marketing and sales expenses if they received lower unit prices for the Company's products. The Company lowered its per unit prices for its three major products to the independent distributors. Jiangbo's new strategy is to use independent distributors for the distribution and sale of its three major products in order to gain access to their knowledge of and access to specific local markets.

The Company lowered its unit prices charged to independent distributors by an average of 26.0% for Clarithromycin Sustained-released tablets, Itopride Hydrochloride granules and Baobaole chewable tablets. The decrease in revenue from lower prices for these three major products was partially offset by an increase in sales revenue from Radix Isatidis Dispersible tablets, a new product launched in December 2008, and other Traditional Chinese Medicines acquired from Hongrui in January 2009.

Sales volume for Clarithromycin Sustained-released tablets and Baobaole chewable tables was higher in the three months ended March 31, 2009 than in the three months ended March 31, 2008. Clarithromycin Sustained-released tablets, Itopride hydrochloride granules and Baobaole chewable accounted for approximately 88.6 % of the total revenue in the three months ended March 31, 2009. Sales volume for Radix Isatidis Dispersible tablets grew throughout the three months ended March 31, 2009.

Gross profit in the third quarter of fiscal year 2009 was $18.9 million, compared to $21.8 million in the prior year's corresponding period. Gross margin was 73.4%, compared to 77.4% in the prior year's corresponding period because of the impact of lower unit sale prices for the Company's three major products.

Research and development costs were $1.1 million for the three months ended March 31, 2009, compared to $1.0 million for the three months ended March 31, 2008.

Selling, general and administrative expenses were $4.5 million for the three months ended March 31, 2009, a decrease of 63.1% from $12.1 million in the three months ended March 31, 2008. Salaries, wages and related benefits decreased by 73.1% from $7.5 million for the three months ended March 31, 2008 to $2.0 million for the three months ended March 31, 2009 primarily because of the significant decrease in commissions paid to the Company's sales representatives. Overall sales commissions declined as a result of cost savings associated with the increased use of 28 independent distributors.

Income from operations was $13.3 million for the three months ended March 31, 2009, a 53.6% increase from $8.7 million for the three months ended March 31, 2008.

Other expense, comprised primarily of interest earned, interest owed and amortized debt discount, was $1.1 million compared to $2.0 million for the three months ended March 31, 2008.

Net income for the three months ended March 31, 2009 was $8.9 million, $0.44 diluted earnings per share, compared to $4.5 million, and $0.46 diluted earnings per share, for the three months ended March 31, 2008.

Excluding a loss from discontinued operations of $103,008, a gain on trading securities of $204,134, and amortization of debt discount and issuance costs related to convertible debentures of $1.2 million, non-GAAP adjusted net income for the three months ended March 31, 2008 was $10.0 million, $0.97 per share, compared to adjusted net income of $6.0 million, $0.61 per share, for the three months ended March 31, 2008.

Nine Month Operating Highlights

Total revenue for the nine month period ended March 31, 2009 was $86.2 million, up 21.0% from $71.3 million for the nine month period ended March 31, 2008.

Gross profit for the nine month period ended March 31, 2009 totaled $66.5 million, up 24.2% from $53.5 million for the nine month period ended March 31, 2008. Gross profit margin was 77.1% for the nine month period ended March 31, 2009, compared to 75.1% for the corresponding period in 2008.

Operating income for the nine month period ended March 31, 2009 totaled $32.1 million, a 45.3% increase from $22.1 million in the corresponding period in 2008. The Company's operating margin increased to 37.2% from 31.0% compared to the same period in 2008, as result of the Company's continuing efforts to reduce its expenses and control its costs.

Net income for the nine month period ended March 31, 2009 was $17.4 million, $1.27 diluted earnings per share, compared to $12.9 million, $1.14 diluted earnings per share, for the corresponding period in 2008. Total shares outstanding as of May 14, 2009 were 10,351,448.

Excluding a loss from discontinued operations of $1.7 million, a loss on trading securities of $1.3 million, and amortization of debt discount and issuance costs related to convertible debentures of $3.2 million, non-GAAP adjusted net income for the nine month period ended March 31, 2008 was $23.5 million, $2.37 per share, compared to adjusted net income of $14.8 million, $2.28 per share, for the nine month period ended March 31, 2008.

Financial Condition

As of March 31, 2009, the Company had $86.1 million in cash and restricted cash. Working capital was $85.6 million, up from $72.5 million as of June 30, 2008. Current liabilities were $27.4 million and convertible debt, net of $29.8 million discount, was $5.0 million. Shareholders' equity was $113.9 million, compared to $95.5 million as of June 30, 2008.

The Company generated $41.1 million in cash flow from operating activities in the first nine months of its fiscal year 2009, compared to $17.7 million for the first nine months of its fiscal year 2008. The Company believes that its strong cash position will sustain its future working capital needs and successfully implement its growth strategies which include the expansion of manufacturing facilities.

...