XI'AN, China, Nov. 10, 2014 /PRNewswire/ --
-
First Quarter of FY 2015 net sales increased 2.0% to $51.3
million; net income decreased 22.0% to $8.1 million with EPS
of $0.25. The revenues met the previously disclosed guidance
of between $50.7 million and $54.3
million, net income beat the previously disclosed guidance
of between $5.9 and $7.8 million by
0.3 million, and EPS beat the previously disclosed guidance of
between $0.18 and $0.24 by
$0.01 per share.
-
The Company Provided Second Quarter of Fiscal Year 2015 Guidance
Range: Revenue, Net Income and EPS of between $49 million and $53 million, $3 million and
$6 million, and EPS of
$0.07 and $ 0.17 based on 35.2
million fully diluted shares, respectively.
- The Company Confirmed Guidance Range of Fiscal Year 2015 as the
following: Revenue, Net Income of between $255 million and $269 million, $26 million
and $35 million. Updated EPS of
$0.74 and $1.0 based on 35.2 million fully diluted shares,
respectively.
China Green Agriculture, Inc. (NYSE: CGA; "China Green
Agriculture" or the "Company"), a company mainly produces and
distributes humic acid-based compound fertilizers, other varieties
of compound fertilizers and agricultural products through its
subsidiaries in China, today announced its financial results
for the quarter ended September 30, 2014.
Financial Summary
First Quarter 2015
Results (USD)
|
(three
months ended September 30, 2014)
|
|
|
|
|
|
Q1 FY2015
|
Q1 FY2014
|
CHANGE (%)
|
Net Sales
|
$51.3
million
|
$50.3
million
|
2.0%
|
Gross
Profit
|
$24.7
million
|
$22.5
million
|
9.8%
|
Net Income
|
$8.1
million
|
$10.4
million
|
(22.0)%
|
EPS
(Diluted)
|
$0.25
|
$0.35
|
(27.8)%
|
Weighted Average
Shares Outstanding (Diluted)
|
$32.4 million
|
$30.0 million
|
8.0%
|
"We are very pleased with our performance of business operation,
generating $8.1 million net income in
the first quarter ended September 30,
2014," said Mr. Li Tao,
Chairman and Chief Executive Officer of China Green Agriculture."
Looking ahead to the second quarter of fiscal year 2015, we expect
net sales of between $49 million and $53 million, net income of between $3
million and $6 million, and EPS
of between $0.07 to $ 0.17 based on 35.2 million fully diluted
weighted average shares outstanding for the second quarter
ended December 31, 2014. We are confident in achieving our
target for the second quarter of fiscal year 2015."
The First Three Months of FY2015 Results of Operations
Total net sales for the three months ended September 30, 2014 were $51,301,790, an increase of $998,443, or 2.0%, from $50,303,347 for the three months ended
September 30, 2013. This increase was
due to an increase in Jinong's net sales offset by a decrease in
Gufeng's net sales.
For the three months ended September 30,
2014, Jinong's net sales increased $2,702,163, or 8.5%, to $34,464,165 from $31,762,002 for the three months ended
September 30, 2013. This increase was
mainly attributable to Jinong's latest implementation of the sales
strategy that focus on promoting the sales of high-margin liquid
fertilizer despite the decrease in Jinong's sales volume during the
last three months.
For the three months ended September 30,
2014, net sales at Gufeng were $15,986,074, a decrease of $1,770,008 or 10.0% from $17,756,082 for the three months ended
September 30, 2013. The decrease was
mainly attributable the delayed fertilization time due to climatic
impact compared to the same period in the last year.
For the three months ended September 30,
2014, Yuxing's net sales were $851,551, an increase of $66,288 or 8.4%, from $785,263 during the three months ended
September 30, 2013. The increase was
mainly attributable to the increased in sales demand of Yuxing's
top-grade flowers.
Total cost of goods sold for the three months ended September 30, 2014 was $26,628,356, a decrease of $1,205,303, or 4.3%, from $27,833,659 for the three months ended
September 30, 2013. This decrease was
mainly due to the 10.0% decrease in Gufeng's net sales.
Cost of goods sold by Jinong for the three months ended
September 30, 2014 was $13,380,623, a decrease of $589,208, or 4.2%, from $13,969,831 for the three months ended
September 30, 2013. The decrease was
primarily attributable to lower product costs for the mix of
products being sold.
Cost of goods sold by Gufeng for the three months ended
September 30, 2014 was $12,599,185, a decrease of $610,447, or 4.6%, from $13,209,632 for the three months ended
September 30, 2013 as a result of the
reduction in net sales.
For three months ended September 30,
2014, cost of goods sold by Yuxing was $648,548, a decrease of $5,648, or 0.9%, from $654,196 for the three months ended September 30, 2013. The decrease is not
significant.
Total gross profit for the three months ended September 30, 2014 increased by $2,203,746 to $24,673,434, as compared to $22,469,688 for the three months ended
September 30, 2013. Gross profit
margin was 48.1% and 44.7% for the three months ended September 30, 2014 and 2013, respectively.
Gross profit generated by Jinong increased by $3,291,371, or 18.5%, to $21,083,542 for the three months ended
September 30, 2014 from $17,792,171 for the three months ended
September 30, 2013. Gross profit
margin from Jinong's sales was approximately 61.2% and 56.0% for
the three months ended September 30,
2014 and 2013, respectively. The increase in gross profit
margin was mainly due to the increased weight for higher-margin
products sales in Jinong's total sales due to Jinong's sales
strategy. Jinong has adjusted its production process to focus on
producing the high-margin liquid fertilizer during the last three
months.
For the three months ended September 30,
2014, gross profit generated by Gufeng was $3,386,889, a decrease of $1,159,561, or 25.5%, from $4,546,450 for the three months ended
September 30, 2013. Gross profit
margin from Gufeng's sales was approximately 21.2% and 25.6% for
the three months ended September 30,
2014 and 2013, respectively. The decrease in gross profit
percentage was mainly due to the increased weight for lower-margin
products sales in Gufeng's total sales answering to market
demand.
For the three months ended September 30,
2014, gross profit generated by Yuxing was $203,003, an increase of $71,936, or 54.9% from $131,067 for the three months ended September 30, 2013. The gross profit margin
was approximately 23.8% and 16.7% for the three months ended
September 30, 2014 and 2013,
respectively. The increase in gross profit percentage was mainly
due to the rising price for flowers during the three months ended
September 30, 2014, comparing to the
same period of 2013.
Our selling expenses consisted primarily of amortization of our
deferred assets, salaries of sales personnel, advertising and
promotion expenses, freight-out costs and related compensation.
Selling expenses were $11,066,721,
or 21.6%, of net sales for the three months ended
September 30, 2014, as compared to
5,796,190 or 11.5% of net sales for the three months ended
September 30, 2013, an increase of
$5,270,531, or 90.9%. The selling
expenses of Gufeng were $185,978 or
1.20% of Gufeng's net sales for the three months ended September 30, 2014, as compared to $154,010, or 0.9% of Gufeng's net sales for the
three months ended September 30,
2013. The selling expenses of Jinong for the three months
ended September 30, 2014 were
$10,873,605 or 31.6% of Jinong's net
sales, as compared to selling expenses of $5,629,531, or 17.7% of Jinong's net sales for
the three months ended September 30,
2013. Most of this increase in Jinong's selling expenses was
due to the amortization of $10,331,084 of the deferred tax assets for the
three months ended September 30, 2014
related to our business strategy implemented since the first
quarter of fiscal year of 2014 that assists distributors in certain
marketing efforts and develops standard stores to expand our
competitive advantages and market shares.
General and administrative expenses consisted primarily of
related salaries, rental expenses, business development,
depreciation and travel expenses incurred by our general and
administrative departments and legal and professional expenses
including expenses incurred and accrued for certain litigations.
General and administrative expenses were $3,119,632, or 6.1% of net sales for the three
months ended September 30, 2014, as
compared to $3,339,776, or 6.6%, of
net sales for the three months ended September 30, 2013, a decrease of $220,144, or 6.6%. The decrease in general
and administrative expenses was mainly due to the related expenses
in the stock compensation awarded to the employees which
amounted to $1,420,720 for the three
months ended September 30, 2014 as
compared to $1,984,494 for the three
months ended September 30, 2013.
Net income for the three months ended September 30, 2014 was $8,099,082, a decrease of $2,279,375, or 22.0%, compared to $10,378,457 for the three months ended
September 30, 2013. The decrease was
attributable to the increase in selling expenses offset by an
increase in our gross margin. Net income as a percentage of total
net sales was approximately 15.8% and 20.6% for the three months
ended September 30, 2014 and 2013,
respectively.
Financial Condition
As of September 30, 2014, cash and
cash equivalents were $41.1 million,
an increase of $14.2 million, or
52.9%, from $26.9 million as of
June 30, 2014. Net cash used in
financing activities for the three months ended September 30, 2014 was $654,550, a decrease of $917,350 or 349.1% from cash provided by
financing activities of $262,800 for
the three months ended September 30,
2013. Company had $ 22.9 million in short-term loans as
of September 30, 2014, a decrease of
$1.1 million, as compared to
$24.0 million in short-term
loans as of June 30, 2014. We had accounts receivable of
$75,058,824 as of September 30, 2014, as compared to $88,781,608 as of June 30,
2014, a decrease of $13,722,784 or 15.5%.
Second Quarter and Fiscal Year 2015 Guidance
For the second quarter ending December
31, 2014, management expects net sales of between
$49 milloin and $53 million, net income of between $3 million and $6 million, and EPS of between
$0.07 and $0.17 based on 32.5 million
fully diluted shares. For the Fiscal Year 2015, management
confirmed net sales of between $255 million
and $269 million, net income of between $26 million and $35 million, updated EPS of
between $1.0 and $0.74 based on 35.2
million fully diluted shares.
Conference Call
The Company will hold a conference call at 7:30 a.m.
ET on Monday, November 10, 2014. Any interested
participants are welcome to join in the call by following the
dial-in details as set out below. When prompted by the operator,
please indicate "China Green Agriculture's First Quarter Fiscal
Year 2015 Financial Results" to join the call.
|
CGA First Quarter
Fiscal Year
|
Event:
|
Q1FY2015 Conference
Call
|
Date:
|
November 10,
2014
|
Time:
|
7:30 a.m.
ET
|
US Dial In:
|
1-888-346-8982
|
Int'l Dial
In:
|
1-412-902-4272
|
Hong Kong-Local
Toll
|
852-301-84992
|
Beijing-Local
Toll
|
86-105-357-3132
|
China Toll
Free
|
4001-201203
|
Hong Kong Toll
Free
|
800-905945
|
The replay will be available 1 hour after the end of the
conference.
Teleconference Replay Available Until: November 17, 2014.To access the replay, please
dial any of the following numbers:
About China Green Agriculture, Inc.
The Company produces and distributes humic acid-based compound
fertilizers, other varieties of compound fertilizers and
agricultural products through its wholly-owned subsidiaries, i.e.:
Jinong, Gufeng and a variable interest entity, Xi'an Hu County
Yuxing Agriculture Technology Development Co., Ltd. ("Yuxing").
Jinong produced and sold 125 different kinds of fertilizer products
as of September 30, 2014, all of which are certified by the
government of the People's Republic of
China (the "PRC") as Green Food Production Materials, as
stated by the China Green Food Development Center. Jinong currently
markets its fertilizer products to private wholesalers and
retailers of agricultural farm products in 27 provinces, four
autonomous regions, and three central-government-controlled
municipalities in the PRC. Jinong had 961 distributors in the
PRC as of September 30, 2014. Gufeng, and its
wholly-owned subsidiary, Beijing Tianjuyuan Fertilizer Co., Ltd.,
are Beijing-based producers of compound fertilizers, blended
fertilizers, organic compound fertilizers, and mixed
organic-inorganic compound fertilizers. As of September 30,
2014, Gufeng produced and sold 331 different kinds of fertilizer
products, and had 268 distributors in the PRC. For more
information, visit http://www.cgagri.com. The Company
routinely posts important information on its website.
Safe Harbor Statement
This press release contains forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of 1995
concerning the Company's business, products and financial results.
The Company's actual results may differ materially from those
anticipated in the forward-looking statements depending on a number
of risk factors including, but not limited to, the following:
general economic, business and environment conditions, development,
shipment, market acceptance, additional competition from existing
and new competitors, changes in technology, the execution of its
ten-year growth plan, a satisfactory conclusion of the pending
securities class action litigation and various other factors beyond
the Company's control. All forward-looking statements are expressly
qualified in their entirety by this Safe Harbor Statement and the
risk factors detailed in the Company's reports filed with the SEC.
China Green Agriculture undertakes no duty to revise or update any
forward-looking statements to reflect events or circumstances after
the date of this release, except as required by applicable law or
regulations.
For more information, please contact:
China Green Agriculture, Inc.
Mr. Ran Liu (English and Chinese)
Tel: +86-29-88266383
Email: liuran@cgagri.com
SOURCE China Green Agriculture, Inc.