Yanglin Soybean, Inc. Reports Fourth Quarter and Record Full Year 2008 Financial Results
HEILONGJIANG, China, April 13 /PRNewswire-Asia-FirstCall/ --
Fourth Quarter 2008 Highlights
-- Revenues for the fourth quarter increased to $60.5 million
-- Gross margin for the fourth quarter rose to 10.3%
-- Adjusted non-GAAP operating income was $5.5 million, when excluding
one-time expense related to disposal of fixed assets. GAAP operating
income was $2.3 million for the quarter
-- Adjusted non-GAAP net income was $5.5 million. GAAP net income was $2.3
million for the fourth quarter
Full year 2008 Highlights
-- Revenues increased 61.5% to $250.7 million, exceeding its guidance of
$240 million
-- Gross margin for the full year 2008 rose to 8.3%
-- Adjusted non-GAAP operating income was $18.3 million. GAAP operating
income increased 41.3% to $15.1 million
-- Adjusted non-GAAP net income was $17.6 million. GAAP net income grew
39.3% to $14.4 million, exceeding its guidance of $14 million
-- Cash and cash equivalents were $30.4 million
-- Cash provided by operating activities was $30.8 million
Yanglin Soybean, Inc. (OTC Bulletin Board: YSYB) (“Yanglin” or the
“Company”), a leading producer and processor of high-quality, non-genetically
modified (non-GM) soybean products in
results for the fourth quarter and year ended
prepares its financial statements in accordance with generally accepted
accounting principles (GAAP) of
“We are excited to report another year of solid financial results that
reflect our position as a leading processor of soybean products in
During the year, we increased our soybean processing volume to capture
additional sales opportunities, as all three main products experienced
significant year-over-year growth,” commented Mr.
Soybean.
“Despite the current economic environment, we expect the overall market
fundamentals of the Chinese soybean industry to remain generally stable. The
economic stimulus package proposed by the Chinese government should have a
positive impact on the overall health of the domestic economy. We also believe
the central government will continue to adopt policies and measures, such as
the national reserve purchase of soybeans, to help support the growth of the
domestic agricultural sector. We also expect there will be less imported
soybeans coming into
2009, thus helping to raise the market prices of soybean products. Internally,
we will be proactive in exploring new market opportunities. Our growth
strategy for 2009 will focus on increasing the market penetration of our
existing products complemented by the introduction of several new valued-added,
higher margin soybean products later this year, including soy protein
concentrates and powder soy oil. These actions will help to promote and
further strengthen Yanglin as a leading domestic processor of healthy,
high-quality soybean products,” concluded Mr. Liu.
Fourth Quarter 2008 Results
Total revenues for the fourth quarter ended
million
On a year-over-year basis, total revenues declined by about
decrease in sales was driven by declining sales from the Company’s soybean oil
and salad oil products. We strategically reduced our processing volume and
hence the production volume of soybean products from our original plans during
the fourth quarter, as the local purchase price of soybean was increased due
to the national strategic reserve purchase by the Chinese government to higher
than normal market prices, while the prices of soybean oil and salad oil
remained flat. Meanwhile, the sale of soybean meal during the fourth quarter
remained strong, as the segment grew more than 11% on a year-over-year basis.
Gross profit for the 2008 fourth quarter was
12.7% as compared to
was 10.3% for the 2008 fourth quarter as compared with 8.7% for the same
period in 2007.
Total operating expenses for the three months ended
increased to
expenses for the 2008 fourth quarter were
the 2007 fourth quarter. General and administrative expenses for the 2008
fourth quarter were
quarter. The increase in G&A expenses was mainly attributed to a one-time
expense item of more than
Total operating expenses accounted for 6.4% of total revenue in 2008 fourth
quarter, as compared to 1.5% in the same period of 2007.
GAAP operating income for the 2008 fourth quarter was
compared with of
operating income during the quarter excluding the one-time item was
million
GAAP net income for the fourth quarter of 2008 totaled
share in the same period one year ago. Adjusted non-GAAP net income for the
2008 fourth quarter was
Reconciliation Table of GAAP to Adjusted Non-GAAP Figures
(In Millions, except per share data)
Three Months Ended
Dec. 31
2008 2007
Total Net Sales $60.5 $63.0
Gross Profit $6.2 $5.5
Total Operating Expenses $3.9 $0.9
Adjustments: (1)
Loss /(gain) from disposal of property,
plant and equipment $3.2 $0.0
GAAP Operating Income $2.3 $4.6
Adjusted non-GAAP Operating Income $5.5 $4.6
Interest Income, net $0.0 -$0.2
Other Income, net $0.0 $0.0
GAAP Net Income $2.3 $4.5
Adjusted non-GAAP Net Income $5.5 $4.5
GAAP Fully Diluted EPS $0.06 $0.13
Adjusted non-GAAP Fully Diluted EPS $0.15 $0.13
(1) To exclude the one time, non-recurring expense related to the
disposal of fixed assets
Full Year 2008 Results
For the full year 2008, total revenues increased 61.5% to
from
production volume to capture additional sales opportunities and benefited from
the higher market prices of soybean-related products during the year. The
Company’s three main products, namely soybean meal, soybean oil and salad oil,
all achieved significant year-over-year sales growth, 66.9%, 49.5% and 65.9%,
respectively, compared with last year’s results.
Net sales
(US$)
Year Ended Dec. 31 %
2008 2007 Change
Soybean Meal $154.5 $92.6 66.9%
Soybean Oil $70.4 $47.1 49.5%
Salad Oil $25.8 $15.6 65.9%
Total Net Sales $250.7 $155.2 61.5%
Gross profit in 2008 was
million
relatively stable when compared with the 2007 year gross margin of 8.1%.
Selling and marketing expenses for the year 2008 were
increase of
selling and marketing expenses due to higher sales-volume-related shipping and
handling expenses. As a percentage of sales, selling expenses remained stable
at 0.1%. General and administrative (G&A) expenses for the year 2008 were
million
in G&A expenses was primarily attributed to the Sarbanes-Oxley compliance
project as well as the one-time expenses related to disposal of fixed assets.
Overall, SG&A expenses accounted for 2.2% of total revenues in 2008 as
compared with 1.2% for 2007.
GAAP operating income increased 41.3% to
in the prior year. Adjusted non-GAAP operating income for 2008 was
million
Net interest expenses increased by
The interest expenses growth during the year was mainly due to the repayment
of interests of a short-term bank loan that was due in 2008. As a percentage
of sales revenue, net interest expense was 0.27% for the full year 2008 as
compared to 0.25% for the full year 2007.
The Company was fully income tax exempt during the year 2008, as it was
recognized by the Chinese government as a key leading enterprise in the
agriculture industry. The current corporate income tax rate in
The Company will continue to enjoy its income tax exempt status during the
calendar year 2009, and the status will be up for review at the end of 2009.
However, given the size of the Company’s operations and its leading status
within the soybean industry, the Company expects to continue to receive
preferential tax treatment from the local and central governments going
forward.
GAAP net income grew 39.3% to a record
with
were
totaled
of shares on fully diluted basis increased by 11% to 37,757,827 shares in 2008
versus 34,003,038 shares in 2007.
Reconciliation Table of GAAP to Adjusted Non-GAAP Figures
(In Millions, except per share data)
Year Ended Dec. 31
2008 2007
Total Net Sales $250.7 $155.2
Gross Profit $20.9 $12.6
Total Operating Expenses $5.8 $2.0
Adjustments: (1)
Loss /(gain) from disposal of property,
plant and equipment $3.2 $0.0
GAAP Operating Income $15.1 $10.7
Adjusted non-GAAP Operating Income $18.3 $10.7
Interest Income, net -$0.7 -$0.4
Other Income, net $0.0 $0.0
GAAP Net Income $14.4 $10.3
Adjusted non-GAAP Net Income $17.6 $10.3
GAAP Fully Diluted EPS $0.38 $0.07
Adjusted non-GAAP Fully Diluted EPS $0.47 $0.07
(1) To exclude the one time, non-recurring expense related to the
disposal of fixed assets
Balance Sheet
The Company’s balance sheet as of
equivalents of
The short-term loan was reduced to
31, 2007
The Company’s financial position is strong as most sales are on a cash
basis with customers paying in advance to secure supplies. The sales process
results in minimal accounts receivables as it generates significant cash flow
from operations. During the full year 2008, net cash provided by operating
activities reached
2009 Full Year Objectives
-- Maintain the Company's soybean market leadership position, through
continued penetration of the soybean meal market and gaining market
share within the soybean oil and salad oil markets
-- Maximize sales potential of the three core products by increasing the
Company's soybean processing volume
-- Introduce certain value-added soybean products with higher margins,
including soy protein concentrates and powder soy oil, to bolster the
Company's existing products
-- Leverage the Company's strong balance sheet to focus on future business
developments
Business Update
On
Mr.
Mr.
Committee. The Company believes the appointment of independent directors and
the establishment of the committees; are major measures to ensure that the
Company is compliant with the listing requirements of relevant authorities and
that it strives to move to a national securities exchange or NASDAQ.
“We are excited to have these three men join our Company as independent
directors. Their experience and knowledge in their respective fields will be
very beneficial, and will contribute greatly to the growth of our business,”
Mr. Liu concluded.
Conference Call
The Company will host a conference call and webcast on
2009
and answer session will follow management’s presentation.
To participate, please call the following numbers ten minutes before the
call start time:
Phone Number + 1 (877) 741-4251 (
Phone Number + 1 (719) 325-4838 (International)
A live webcast of the conference call will be available by accessing the
below website:
http://investor.shareholder.com/media/eventdetail.cfm?eventid=67763&CompanyID=
ABEA-2TLYHA&e=1&mediaKey=A5535180B4AC2C3BC1AF54D86EC77F5E
(Please paste the full URL to your browser for proper viewing)
About Yanglin
Yanglin Soybean, Inc. is a leading non-genetically modified (non-GM)
soybean processor in
and soybean meal with an annual processing capacity of 520,000 metric tons in
2008. The Company’s products are sold directly to its customers or through
distributors. Majority of Yanglin Soybean’s customers are located in
China
Forward Looking Statement
Safe Harbor Statement under the Private Securities Litigation Reform Act
of 1995: Certain statements in this press release and oral statements made by
the Company constitute forward-looking statements for purposes of the safe
harbor provisions under The Private Securities Litigation Reform Act of 1995.
These statements include, without limitation, statements regarding our ability
to prepare the company for growth, the Company’s planned capacity expansion
and predictions and guidance relating to the Company’s future financial
performance. We have based these forward-looking statements largely on our
current expectations and projections about future events and financial trends
that we believe may affect our financial condition, results of operations,
business strategy and financial needs but they involve risks and uncertainties
that could cause actual results to differ materially from those in the
forward-looking statements, which may include, but are not limited to, such
factors as unanticipated changes in product demand, pricing and demand trends
for the Company’s products, changes to government regulations, risk associated
with operation of the Company’s facilities, risk associated with large scale
implementation of the company’s business plan, the ability to attract new
customers, ability to increase its product’s acceptance, cost of raw materials,
downturns in the Chinese economy, and other information detailed from time to
time in the Company’s filings and future filings with the United States
Securities and Exchange Commission. Investors are urged to consider these
factors carefully in evaluating the forward-looking statements herein and are
cautioned not to place undue reliance on such forward-looking statements,
which are qualified in their entirety by this cautionary statement. The
forward-looking statements made herein speak only as of the date of this press
release and the Company undertakes no duty to update any forward-looking
statement to conform the statement to actual results or changes in the
company’s expectations.
Non-GAAP Measures
The non-GAAP financial measures are provided to enhance the investors’
overall understanding of the Company’s current and past financial performance
in on-going core operations as well as prospects for the future. These
measures should be considered in addition to results prepared and presented in
accordance with GAAP, but should not be considered a substitute for or
superior to GAAP results. Management uses both GAAP and non-GAAP information
in evaluating and operating business internally and therefore deems it
important to provide all of this information to investors.
CONSOLIDATED BALANCE SHEETS
AS AT DECEMBER 31, 2008, AND 2007
(Stated in US Dollars)
2008 2007
ASSETS
Current assets
Cash and cash equivalents $ 30,365,413 $ 9,210,121
Pledged deposits 484,000 500,000
Trade receivables 8,043 13,854
Inventories 3,896,334 17,883,652
Advances to suppliers 10,597,701 5,736,267
Prepaid VAT and other taxes 920,083 2,457,137
Other receivables 114,990 27,896
Total current assets $ 46,386,564 $ 35,828,927
Property, plant and
equipment, net 31,529,936 22,563,196
Intangible assets, net 4,619,716 3,444,081
Prepaid deposits for equipment
and construction 13,021 8,896,327
TOTAL ASSETS $ 82,549,237 $ 70,732,531
LIABILITIES AND
STOCKHOLDERS' EQUITY
Current liabilities
Short-term bank loans $ 6,711,214 $ 12,305,000
Current portion of long-term
bank loans 55,149 47,433
Accounts payable 13,753 12,921
Other payables 683,403 44,380
Customers deposits 1,187,582 2,656,777
Accrued liabilities 591,979 521,114
Total current liabilities $ 9,243,080 $ 15,587,625
Long-term liabilities
Long-term bank loans 434,678 457,107
TOTAL LIABILITIES $ 9,677,758 $ 16,044,732
STOCKHOLDERS' EQUITY
Preferred Stock - Series A $0.001
par value, 50,000,000 shares
authorized; 9,999,999 shares
issued and outstanding as of
December 31, 2008 and
December 31, 2007 $ 10,000 $ 10,000
Common stock - $0.001 par value
100,000,000 shares authorized;
20,000,003 shares issued and
outstanding as of December 31,
2008 and December 31, 2007 20,000 20,000
Additional paid-in capital 38,389,635 38,389,635
Statutory reserves 5,628,636 3,490,834
Retained earnings 21,664,524 9,421,860
Accumulated other comprehensive
income 7,158,684 3,355,470
$ 72,871,479 $ 54,687,799
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY $ 82,549,237 $ 70,732,531
CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME
FOR THE YEARS ENDED DECEMBER 31, 2008, AND 2007
(Stated in US Dollars)
2008 2007
Net sales $ 250,728,674 $ 155,206,867
Cost of sales (229,838,842) (142,568,658)
Gross profit $ 20,889,832 $ 12,638,209
Selling expenses (249,812) (146,411)
General and administrative expenses (5,552,223) (1,812,450)
Income from operation $ 15,087,797 $ 10,679,348
Interest income 145,340 64,277
Interest expenses (822,355) (458,982)
Other income 797 39,385
Other expenses (31,113) --
Income from operations before income
taxes $ 14,380,466 $ 10,324,028
Income taxes -- --
Net income $ 14,380,466 $ 10,324,028
Beneficial conversion feature on
Series A preferred stock -- (7,988,359)
Net income attributable to common
shareholders $ 14,380,466 $ 2,335,669
Foreign currency translation
adjustment 3,803,214 2,466,280
Comprehensive income $ 18,183,680 $ 4,801,949
Basic earnings per share $ 0.72 $ 0.12
Diluted earnings per share $ 0.38 $ 0.07
Basic weighted average share
outstanding 20,000,003 19,998,473
Diluted weighted average share
outstanding 37,757,827 34,003,038
For more information, please contact:
Yanglin Soybean, Inc.
Mr. Bode Xu
Chief Financial Officer
Email: yanglin_bodexu@hotmail.com
Grayling
Eddie Cheung
Investor Relations
Tel: +1-646-284-9414
Email: eddie.cheung@us.grayling.com
SOURCE Yanglin Soybean, Inc.