TIANJIN, China, May 16, 2011 /PRNewswire-Asia/ -- Tiens Biotech
Group (USA), Inc. (the "Company"
or "Tiens", NYSE AMEX: TBV), www.tiens-bio.com, a company dedicated
to the research, development, manufacturing, and marketing of
nutrition supplement products, including wellness products and
dietary supplements, today announced financial results for the
quarter ended March 31, 2011.
Revenue for the first quarter of 2011 was $13.1 million, compared to $11.4 million for 2010.
Net income for first quarter of 2011 was $2.9 million, or $0.04 per share, compared to $3.6 million, or $0.05 per share for 2010.
The 14.4% increase in revenue for the first quarter of 2011
mainly resulted from a 21.2% increase in domestic sales as compared
to the year-ago period. There were two primary reasons for the
robustness of the domestic market. First, distributors rushed to
increase inventory in advance of the planned price increases for
some products that were scheduled for March
2011. Additionally, Tiens began to see the effects of the
long-awaited direct selling license that was awarded by the
Ministry of Commerce of the People's
Republic of China on March 11,
2011. On the international front, Tiens experienced a
modest 4.6% increase as a result of increased sales to South Africa.
Net income, however, was negatively impacted by an increase of
$1.4 million in selling, general and
administrative expenses. This increase was primarily responsible
for the 18.3% decrease in net income for the quarter and was mainly
due to increases in depreciation related to the transfer of
construction in progress to fixed assets.
Other Highlights
Cost of sales were $4.1 million in
2011 compared to $3.4 million in
2010, an increase of 20.2%. This increase was primarily due to the
corresponding increase in sales. However, cost of sales rose at a
higher rate than sales overall, as a result of a reduction in sales
of the Company's higher margin products.
Gross profit increased by 11.9% to $8.9
million in 2011, compared to $8.0
million in 2010. The gross profit margin for 2011 was 68.3%
compared to 69.8% for the same period in 2010.
Selling, general and administrative expenses increased by 39.3%
to $4.9 million in 2011, compared to
$3.5 million in 2010. The increase
was primarily due to the aforementioned increases in
depreciation.
As of March 31, 2011, Tiens had
$130.7 million of retained earnings
and total shareholders' equity of $190.1
million.
Jinyuan Li, Chairman, President
and CEO of Tiens, said, "We are pleased by the increase in sales
this quarter and expect our new domestic selling license to be a
growing contributor to revenue in the months and years ahead. In
the international arena, we are confident that our operations will
gradually improve as worldwide economic conditions continue to
recover. Likewise, operational improvements made at the distributor
level should also boost results over time. Our commitment to
both domestic and international growth remains steadfast as we
continue to manage our business through the economic recovery and
look ahead toward further execution of our strategic growth plans
in both China and abroad."
About Tiens Biotech Group (USA), Inc. www.tiens-bio.com
Tiens Biotech Group (USA), Inc.
(NYSE AMEX: TBV) conducts its business operations from Tianjin, People's
Republic of China. Tiens primarily engages in the research,
development, manufacturing, and marketing of nutrition supplement
products, including wellness products and dietary supplements.
Tiens derives its revenues principally from product sales to
affiliated companies in China and
internationally in 45 countries. Since its establishment, Tiens has
developed and produced 37 nutrition supplements, which include
wellness products and dietary supplements. Tiens develops its
products at its own product research and development center, which
employs highly qualified professionals in the fields of
pharmacology, biology, chemistry and fine chemistry. Tiens has
obtained all required certificates and approvals from government
regulatory agencies to manufacture and sell its products in
China.
In China, Tiens conducts the
marketing and sales of its products through its affiliated company,
Tianshi Engineering. Tianshi Engineering markets and sells Tiens'
products in China through chain
stores, domestic affiliated companies, and its 87 branches.
Outside of China, Tiens
sells its products to affiliated companies in 45 countries who in
turn sell through an extensive direct sales force, or multi-level
marketing sales force. The Company's direct sales marketing program
is subject to governmental regulation in each of these countries.
Certain statements in this press release constitute
"forward-looking statements" within the meaning of Section 27A of
the Securities Act of 1933 and Section 21E of the Securities and
Exchange Act of 1934. Such forward-looking statements are not
necessarily indicative of future financial results, and may involve
known and unknown risks, uncertainties and other factors, which may
cause the actual results, performance or achievements of the
Company, to be materially different from any future results,
performance, or achievements expressed or implied by such
forward-looking statements. The Company's future operating results
are dependent upon many factors, including but not limited to: (i)
the Company's ability to obtain sufficient capital or a strategic
business arrangement to fund its expansion plans; (ii) the
Company's ability to build the management and human resources and
infrastructure necessary to support the growth of its business;
(iii) competitive factors and developments beyond the Company's
control; (iv) whether the Company continues to experience delays in
the export clearance of its products; and (v) other risk factors
discussed in the Company's periodic filings with the Securities and
Exchange Commission which are available for review at
http://www.sec.gov.
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CONTACT:
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Investor Relations
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Debra Berliner
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Tiens Biotech
Group (USA), Inc.
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G. S. Schwartz &
Co.
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Tel: +86-22-8213-3118
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Tel: 212-725-4500
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Fax:
+86-22-8213-7914
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Fax: 212-725-9188
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Email: investor@tiens-bio.com
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Email: dberliner@schwartz.com
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http://www.tiens-bio.com
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-Tables Follow-
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TIENS
BIOTECH GROUP (USA), INC. AND SUBSIDIARIES
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CONSOLIDATED
STATEMENTS OF INCOME AND OTHER COMPREHENSIVE INCOME
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FOR THE
THREE MONTHS ENDED MARCH 31, 2011 AND 2010 (UNAUDITED)
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Three months
ended March 31,
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2011
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2010
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REVENUE-RELATED
PARTIES
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$
13,050,225
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$
11,403,363
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COST OF SALES-RELATED
PARTIES
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4,136,399
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3,440,881
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GROSS PROFIT
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8,913,826
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7,962,482
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SELLING, GENERAL AND
ADMINISTRATIVE EXPENSES
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4,870,886
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3,497,547
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INCOME FROM
OPERATIONS
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4,042,940
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4,464,935
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Interest
expense
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(131,636)
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-
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Interest
income
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7,992
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1,872
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Other
expense
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(529,185)
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(253,710)
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OTHER EXPENSE, NET
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(652,829)
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(251,838)
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INCOME BEFORE PROVISION FOR
INCOME TAXES
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3,390,111
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4,213,097
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PROVISION FOR INCOME
TAXES
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446,299
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609,502
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NET INCOME
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2,943,812
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3,603,595
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LESS:
Net income attributable to the noncontrolling interest
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(190,204)
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(342,057)
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NET INCOME ATTRIBUTABLE TO THE
COMPANY
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2,753,608
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3,261,538
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OTHER COMPREHENSIVE
INCOME:
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Foreign currency
translation adjustment
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1,012,022
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14,970
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COMPREHENSIVE INCOME
ATTRIBUTABLE
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TO THE COMPANY
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3,765,630
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3,276,508
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COMPREHENSIVE INCOME
ATTRIBUTABLE
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TO THE NONCONTROLLING
INTEREST
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257,361
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343,398
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COMPREHENSIVE INCOME
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$
4,022,991
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$
3,619,906
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EARNINGS PER SHARE,
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BASIC AND DILUTED
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$ 0.04
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$ 0.05
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WEIGHTED AVERAGE NUMBER OF
SHARES,
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BASIC AND DILUTED
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71,333,586
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71,333,586
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The accompanying notes are an
integral part of this statement.
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TIENS
BIOTECH GROUP (USA), INC. AND SUBSIDIARIES
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CONSOLIDATED
BALANCE SHEETS
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AS OF MARCH
31, 2011 (UNAUDITED) AND DECEMBER 31, 2010 (AUDITED)
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March
31,
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December
31,
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2011
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2010
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(Unaudited)
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(Audited)
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ASSETS
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CURRENT ASSETS:
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Cash
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$
9,691,411
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$
10,155,522
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Accounts receivable,
trade-related parties, net of
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allowance
for doubtful accounts of $4,152,284 and $3,869,617
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as of March
31, 2011 and December 31, 2010, respectively
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11,279,779
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10,012,861
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Inventories
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6,801,856
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5,703,349
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Other
receivables
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942,959
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1,045,952
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Other receivables-related
parties
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17,327,387
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17,376,522
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Employee
advances
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127,314
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170,842
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Prepaid expenses,
net
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356,817
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415,208
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Prepaid taxes
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3,689,268
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3,646,140
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Total
current assets
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50,216,791
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48,526,396
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PROPERTY, PLANT AND EQUIPMENT,
net
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72,098,917
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72,037,542
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OTHER ASSETS:
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Construction in
progress
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130,736,007
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128,715,283
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Construction
deposits
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20,177,749
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12,490,855
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Intangible assets,
net
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12,991,801
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12,987,000
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Other assets
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10,302,761
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10,721,040
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Total other
assets
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174,208,318
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164,914,178
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Total assets
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$
296,524,026
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$
285,478,116
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LIABILITIES
AND SHAREHOLDERS' EQUITY
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CURRENT LIABILITIES:
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Accounts
payable
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$
14,719,467
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$
14,120,791
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Advances from
customers-related parties
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7,546,016
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8,688,877
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Wages and benefits
payable
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1,584,986
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1,613,782
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Short-term
debt
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7,610,000
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3,024,800
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Income taxes
payable
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717,129
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490,782
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Contractor
deposits
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195,485
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209,376
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Contractor
payables
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26,888,982
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28,134,711
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Other payables
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1,109,025
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1,113,416
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Other payables-related
parties
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5,337,033
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1,417,516
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Total
current liabilities
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65,708,123
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58,814,051
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NON-CURRENT
LIABILITIES
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Long term debt
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18,568,400
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18,451,280
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Deferred
income
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11,400,523
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11,473,853
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Total non
current liabilities
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29,968,923
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29,925,133
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Total
liabilities
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95,677,046
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88,739,184
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EQUITY:
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Shareholders' equity of
the Company:
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Common
stock, $0.001 par value, 250,000,000 shares authorized,
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71,333,586 issued and outstanding, respectively
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71,334
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71,334
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Paid-in-capital
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18,428,796
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18,349,908
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Statutory
reserves
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16,465,144
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16,465,144
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Retained
earnings
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130,711,559
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127,957,951
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Accumulated
other comprehensive income
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24,405,648
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23,393,626
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Total shareholders' equity of the Company
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190,082,481
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186,237,963
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Noncontrolling interest
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10,764,499
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10,500,969
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Total
equity
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200,846,980
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196,738,932
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Total liabilities and equity
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$
296,524,026
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$
285,478,116
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The accompanying notes are an
integral part of this statement.
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TIENS
BIOTECH GROUP (USA), INC. AND SUBSIDIARIES
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CONSOLIDATED
STATEMENTS OF CASH FLOWS
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FOR THE
THREE MONTHS ENDED MARCH 31, 2011 AND 2010 (UNAUDITED)
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Three months
ended March 31,
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2011
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2010
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CASH FLOWS FROM OPERATING
ACTIVITIES:
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Net income
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$
2,943,812
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$
3,603,595
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Adjustments to reconcile
net income to cash
|
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provided by
(used in) operating activities:
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Deferred income
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(145,776)
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-
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Provision for doubtful accounts
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257,427
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202,247
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Depreciation
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1,117,611
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417,469
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Amortization
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85,020
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83,557
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loss
on assets written off
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655,611
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-
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Gain
on sale of assets
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-
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(15,082)
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Rental expense borne by a related party
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84,834
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81,749
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(Increase)
decrease in assets:
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Accounts receivable, trade-related parties
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(1,457,625)
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4,933,543
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Other receivables
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109,344
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93,577
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Other receivables-related parties
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141,586
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(1,200,159)
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Inventories
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(1,050,293)
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304,560
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Employee advances
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44,495
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13,935
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Prepaid expense
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60,774
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64,017
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Increase
(decrease) in liabilities:
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Accounts payable
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500,706
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(819,926)
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Advances from customers-related parties
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(1,194,866)
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4,034,448
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Wages and benefits payable
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(38,897)
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(416,798)
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Other taxes payable
|
202,713
|
|
550,140
|
|
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Other payables
|
(11,159)
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|
19,487
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|
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Other payables-related parties
|
3,900,777
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|
1,079,414
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Net cash provided by operating activities
|
6,206,094
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13,029,773
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CASH FLOWS FROM INVESTING
ACTIVITIES:
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Investment in Life
Resources
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-
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3,000,000
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Proceeds from disposal of
a subsidiary
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-
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700,000
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Construction
deposits
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(7,783,013)
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(562,642)
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Contractor
deposits
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(15,180)
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-
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Addition to construction
in progress
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(2,729,380)
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(9,112,590)
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Equipment
deposits
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(427,179)
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(1,558,192)
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Proceeds from sales of
properties
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-
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2,621,021
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Purchase of equipment and
automobiles
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(163,060)
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(88,505)
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Net cash used in investing activities
|
(11,117,812)
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|
(5,000,908)
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CASH FLOWS FROM FINANCING
ACTIVITIES:
|
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Proceed from short term
debt
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4,554,000
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-
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Net cash provided by financing activities
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4,554,000
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-
|
|
|
|
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EFFECT OF EXCHANGE RATE CHANGES
ON CASH
|
(106,393)
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|
(3,895)
|
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NET INCREASE (DECREASE) IN
CASH
|
(464,111)
|
|
8,024,970
|
|
|
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CASH, beginning of
period
|
10,155,522
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|
1,848,328
|
|
|
|
|
|
|
|
|
|
|
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CASH, end of period
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$ 9
,691,411
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|
$
9,873,298
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|
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|
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Supplemental disclosures of cash
flow information
|
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Cash paid during the
period for:
|
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Interest
|
$
342,018
|
|
$
-
|
|
|
Income
taxes
|
$
223,653
|
|
$
213,625
|
|
|
|
|
|
|
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The accompanying notes are an
integral part of this statement.
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REVENUE BY
REGION
|
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Three months
ended March 31,
|
|
|
2011
|
|
2010
|
|
|
|
|
|
|
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China
|
$
8,218,691
|
|
$
6,783,273
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International
|
4,831,534
|
|
4,620,090
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Total
|
$
13,050,225
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|
$
11,403,363
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SOURCE Tiens Biotech Group (USA), Inc.