SkyPeople Fruit Juice Reports Third Quarter 2012 Financial Results
XI'AN, China, Nov. 13, 2012 /PRNewswire-FirstCall/ — SkyPeople Fruit Juice, Inc. (NASDAQ: SPU) ("SkyPeople" or "the Company"), a producer of fruit juice concentrates, fruit juice beverages and other fruit-related products, today announced its financial results for the third quarter ended September 30, 2012.
Third Quarter 2012 Highlights:
"We are very pleased to have achieved strong year-to-year growth in revenues and net income for the third quarter of 2012. Our strong results were driven by exceptional performance in two of our key product segments, concentrated pear juice and fruit juice beverages," said Mr. Yongke Xue, Chief Executive Officer of SkyPeople. "Our overall profitability improved significantly as well on the basis of an expansion of gross margins attributable to better raw material costs as well as lower operating expenses. We believe that our strategy of diversifying our product mix has been very effective in that it provides us with flexibility to shift our manufacturing focus towards better performing products so as to optimize our operating performance. "
CEO Xue continued, "As recently announced, we are further diversifying our business into the orange products segment. We recently entered into an agreement with the Yidu Municipal People's Government in Hubei Province, one of the biggest citrus production provinces in China, with regard to an orange comprehensive deep processing project. The project is estimated to require a total investment of approximately $61 million by the Company that includes land use rights, development of an orange plantation and the construction of a processing plant, a storage facility and other general purpose facilities. We believe that this strategic expansion is complementary to our existing product platform. It is expected to broaden our product mix, enhance our competitive advantage and further mitigates both the regional and seasonal cyclicality of our major fruit product segments."
"We will work hard to successfully implement this new venture and hope to close the year 2012 on a positive note," CEO Xue concluded.
Third Quarter 2012 Financial Results
Revenue for the three months ended September 30, 2012 was $28.6 million, an increase of 64%, as compared to $17.4 million for the same period in 2011. This increase was primarily due to an increase in the sales of concentrated pear juice and fruit juice beverages, which offset a decrease in the sales of concentrated apple juice and apple aroma and concentrated kiwifruit juice and kiwifruit puree.
Gross profit was $8.5 million, an increase of 76% from $4.8 million in the third quarter of 2011. Gross profit margin was 30% as compared to 28% for the same period of 2011. The year-over-year increase in gross margin was attributable to a substantial rise in gross margin of the Company's fruit juice beverages segment and concentrated pear juice segments, which offset declines in gross margins of its other product segments.
Operating expenses for the third quarter of 2012 decreased 8% to $1.8 million, or 6% of sales, compared to $2.0 million, or 11% of sales for the same period of 2011. General and administrative expenses decreased 21% to $1.0 million, mainly due to decreases in legal fees related to currently pending litigations. Selling expenses increased 15% to $0.7 million, which was mainly due to an increase in the headcount of the Company's sales force.
Income from operations for the third quarter of 2012 increased 136% to $6.7 million as compared to $2.8 million for the same period of 2011.
Other income was $0.5 million for the third quarter of 2012, as compared to other expense of $0.2 million in the same period of 2011. The increase in other income was primarily due to an increase in the subsidy income of $0.6 million in the third quarter as a result of the value-added tax rebates provided on the Company's exports, which significantly increased in the third quarter of 2012 from the corresponding period of 2011.
Net income attributable to common shareholders and diluted earnings per share for the third quarter of 2012 increased 177% to $5.0 million and $0.19, respectively, compared to $1.8 million and $0.07, respectively, for the third quarter of 2011.
Nine-Month 2012 Financial Results
Revenue for the nine months ended September 30, 2012 increased 15% to $56.4 million, from $49.1 million for the same period of 2011. Gross profit decreased to $17.5 million from $17.6 million in the corresponding period of 2011. Operating income declined to $12.2 million for the first nine months of 2012 from $12.4 million for the same period of 2011. Net income attributable to common shareholders and earnings per share for the first nine months of 2012 increased to $9.4 million, or $0.35 per diluted share compared to net income attributable to common shareholders of $8.6 million, or $0.32 per diluted share, for the same period of 2011.
The Company will hold a conference call on Wednesday, November 14, 2012 at 9:00 a.m. Eastern Time to discuss its financial results for the third quarter ended September 30, 2012.
The Company's CEO, Mr. Yongke Xue, and CFO, Mr. Xin Ma, will host the call.
To attend the live conference call, please dial in at least 10 minutes before the call to ensure timely participation. Please use the dial-in information below. When prompted by the operator, mention the conference Pass Code.
To access the replay, please dial 1-855-859-2056 within the United States or 1-404-537-3406 when dialing internationally, and enter the pass code 70094777 for the replay. The replay will be available on November 14 at 12:00 pm.
About SkyPeople Fruit Juice, Inc.
SkyPeople Fruit Juice, Inc., a Florida company, through its wholly-owned subsidiary Pacific Industry Holding Group Co., Ltd. ("Pacific"), a Vanuatu company, and SkyPeople Juice International Holding (HK) Ltd., a company organized under the laws of Hong Kong Special Administrative Region of the People's Republic of China and a wholly owned subsidiary of Pacific, holds 99.78% ownership interest in SkyPeople Juice Group Co., Ltd. ("SkyPeople (China)"). SkyPeople (China), together with its operating subsidiaries in China, is engaged in the production and sales of fruit juice concentrates, fruit beverages, and other fruit related products in the PRC and overseas markets. Its fruit juice concentrates are sold to domestic customers and exported directly or via distributors. Fruit juice concentrates are used as a basic ingredient component in the food industry. Its brands, "Hedetang" and "SkyPeople," which are registered trademarks in the PRC, are positioned as high quality, healthy and nutritious end-use juice beverages. For more information, please visit http://www.skypeoplefruitjuice.com.
Safe Harbor Statement
Certain of the statements made in this press release are "forward-looking statements" within the meaning and protections of Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended, or the Exchange Act. Forward-looking statements include statements with respect to our beliefs, plans, objectives, goals, expectations, anticipations, assumptions, estimates, intentions, and future performance, and involve known and unknown risks, uncertainties and other factors, which may be beyond our control, and which may cause the actual results, performance, capital, ownership or achievements of the Company to be materially different from future results, performance or achievements expressed or implied by such forward-looking statements. All statements other than statements of historical fact are statements that could be forward-looking statements. You can identify these forward-looking statements through our use of words such as "may," "will," "anticipate," "assume," "should," "indicate," "would," "believe," "contemplate," "expect," "estimate," "continue," "plan," "point to," "project," "could," "intend," "target" and other similar words and expressions of the future.
All written or oral forward-looking statements attributable to us are expressly qualified in their entirety by this cautionary notice, including, without limitation, those risks and uncertainties described in our annual report on Form 10-K for the year ended December 31, 2011 and otherwise in our SEC reports and filings, including the final prospectus for our offering. Such reports are available upon request from the Company, or from the Securities and Exchange Commission, including through the SEC's Internet website at http://www.sec.gov. We have no obligation and do not undertake to update, revise or correct any of the forward-looking statements after the date hereof, or after the respective dates on which any such statements otherwise are made.
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-Financial Tables Follow-
The notes in the Company's 10-Q are an integral part of these consolidated financial statements.
SOURCE SkyPeople Fruit Juice, Inc.
|Company Codes: NASDAQ-NMS:SPU|