SKYPEOPLE FRUIT JUICE INC 
By XI'AN , China, May 14, 2012 /PRNewswire-Asia-FirstCall/ -- SkyPeople Fruit Juice, Inc. (NASDAQ: SPU) ("SkyPeople" or "the Company"), a producer of fruit juice concentrates, fruit beverages and other fruit-related products, today announced its financial results for the three months ended March 31, 2012.
First Quarter 2012 Summary:
-- Total revenue was $15.0 million, a decrease of 23% year-over-year
-- Sales revenue of concentrated kiwi juice and kiwi puree increased 26% to
$3.8 million
-- Sales revenue of concentrated pear juice increased 19% to $4.8 million
-- Cash generated from operations was $14.8 million
-- Cash and cash equivalents were $76.7 million as of March 31, 2012
Yongke Xue, Chief Executive Officer of SkyPeople, commented, "We continue to be challenged by unpredictable market conditions and rising raw material costs due to the volatile pricing of fresh fruits. We understand that these factors are beyond our control, and have been working to further diversify our segment mix to offset, to the extent possible, the effect of seasonality. Nonetheless, we were able to generate healthy margins in two key product lines. We are also pleased to report solid cash flows generated from operating activities, further strengthening our cash position which enables us to execute our comprehensive growth strategy."
"During the quarter we achieved the following important developments which I would like to highlight. First of all, our cash balances had been independently verified, which substantiated our integrity and reassured investors as to our credibility. Secondly, we had commenced operation of a new fruit juice beverage production line in our Huludao Wonder subsidiary, which was expected to help us take advantage of economies of scale and focus on producing high margin fruit juice beverages. Thirdly, we appointed Mr. Xin Ma as our new Chief Financial Officer with confidence that his experience with U.S. publicly traded Chinese companies is an excellent fit to our needs. These developments reflected our management's commitment to focus on enhanced financial transparency, sound investor communications and an operational focus on high margin products. Our top priority continues to be generating solid returns on our investment so as to create long-term value for our shareholders," CEO Xue stated.
First Quarter 2012 Financial Results
Revenue for the three months ended March 31, 2012 was $15.0 million, a decrease of 23%, as compared to $19.4 million in the same period in 2011. This decrease was primarily due to a decrease in the sales of concentrated apple juice and apple aroma, fruit juice beverages as well as fresh fruits and vegetables, as partially offset by an increase in the sales of concentrated kiwifruit juice and kiwifruit puree and concentrated pear juice.
First Quarter 2012 Revenue by Segment (in thousands)
2012 2011 % of change
---- ---- -----------
Concentrated apple juice and apple aroma $2,508 $3,673 (32%)
Concentrated kiwifruit juice and kiwifruit puree 3,761 2,985 26%
Concentrated pear juice 4,767 4,022 19%
Fruit juice beverages 3,370 7,277 (54%)
Fresh fruits and vegetables 588 1,458 (60%)
--- ----- ----
Total $14,994 $19,415 (23%)
======= ======= ====
Gross profit was $4.8 million, as compared to $8.6 million in the first quarter of 2011. Gross profit margin was 32% as compared to 44% in the same period of 2011. The year-over-year decline in gross margin was attributable to a decline in gross margins in four of the Company's five primary product segments.
Operating expenses for the first quarter of 2012 were $2.1 million, or 15% of sales, compared to $1.4 million, or 7% of sales in the same period of 2011. General and administrative expenses increased by 81% to $1.5 million, mainly due to an increase in legal fees related to the Company's current pending litigations, payroll and related expenses as a result of an increase in employees to handle the increased general and administrative work. Selling expenses increased by 16% to $0.5 million, mainly due to an increase in payroll and related expenses as a result of an increased headcounts to handle the greater sales effort.
Income from operations for the first quarter of 2012 dropped 63% to $2.6 million as compared to $7.2 million for the same period of 2011.
Net income attributable to common shareholders and earnings per share for the first quarter of 2012 were $1.9 million and $0.07, respectively, compared to $5.3 million and $0.20, respectively, in the first quarter of 2011.
Conference Call
The Company will hold a conference call on Tuesday, May 15, 2012, at 9:00 a.m. Eastern Time to discuss its financial results for the first quarter ended March 31, 2012.
The Company's CEO, Mr. Yongke Xue, and the 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.
Date: Tuesday, May 15, 2012
Time: 9:00 a.m. Eastern Time, US
Conference Line Dial-In: +1-866-394-2209
International Dial-In: +1-706-758-1481
Conference Pass Code: 79908497
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 79908497 for the replay. The replay will be available on May 15th 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, holds 99.78% ownership interest in SkyPeople Juice Group Co., Ltd. ("SkyPeople (China)"). SkyPeople (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.
For more information, please contact:
COMPANY
Xin Ma, CFO
SkyPeople Fruit Juice, Inc.
Tel: China + 86 - 29-8837-7161
Email: oliver.x.ma@skypeoplefruitjuice.com
Web: http://www.skypeoplefruitjuice.com- Financial Tables Follow -
SKYPEOPLE FRUIT JUICE, INC.
CONSOLIDATED BALANCE SHEETS
March 31, December 31,
--------- ------------
2012 2011
---- ----
ASSETS (Unaudited)
CURRENT ASSETS
Cash and cash equivalents $76,713,489 $61,154,007
Restricted cash 31,775 316,396
Accounts receivables, net of
allowance of $46,577 21,782,597 35,999,858
and $46,529 as of March 31, 2012
and December 31, 2011,
respectively
Other receivables 190,210 192,032
Inventories 5,335,964 6,126,376
Deferred tax assets 113,770 174,285
Advances to suppliers and other current
assets 175,832 66,528
------- ------
TOTAL CURRENT ASSETS 104,343,637 104,029,482
=========== ===========
PROPERTY, PLANT AND EQUIPMENT, NET 49,784,454 44,277,228
LAND USE RIGHT, NET 6,635,133 6,673,496
OTHER ASSETS 173,233 5,323,162
TOTAL ASSETS $160,936,457 $160,303,368
============ ============
LIABILITIES
CURRENT LIABILITIES
Accounts payable $2,099,190 $2,972,916
Accrued expenses 3,468,696 4,701,054
Income tax payable 855,217 1,910,779
Advances from customers - 178,857
Short-term bank loans 8,467,979 6,425,713
Short-term notes payable - 284,654
--- -------
TOTAL CURRENT LIABILITIES 14,891,082 16,473,973
---------- ----------
SHAREHOLDERS' EQUITY
SkyPeople Fruit Juice, Inc,
Stockholders' equity
Series B Preferred stock, $0.001
par value; 1,457 1,457
10,000,000 shares authorized;
1,456,647
issued and outstanding as of March
31,
2012 and December 31, 2011
Common stock, $0.001 par value;
66,666,666 25,690 25,690
shares authorized; 25,690,402
shares
issued and outstanding as of March
31,
2012 and December 31, 2011
Additional paid-in capital 59,189,374 59,189,374
Retained earnings 66,542,611 64,623,453
Accumulated other comprehensive
income 14,236,710 14,086,620
---------- ----------
Total SkyPeople Fruit Juice, Inc.
stockholders' 139,995,842 137,926,594
equity
Non-controlling interests 6,049,533 5,902,801
--------- ---------
TOTAL EQUITY 146,045,375 143,829,395
TOTAL LIABILITIES AND EQUITY $160,936,457 $160,303,368
============ ============
SKYPEOPLE FRUIT JUICE, INC.
CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME
(Unaudited)
For the Three month Ended March 31,
-----------------------------------
2012 2011
---- ----
Revenue $14,993,500 $19,414,915
Cost of goods sold 10,207,501 10,809,357
---------- ----------
Gross profit 4,785,999 8,605,558
Operating Expenses
General and administrative expenses 1,477,604 816,160
Selling expenses 525,334 454,674
Research and development expenses 142,685 136,467
------- -------
Total operating expenses 2,145,623 1,407,301
Income from operations 2,640,376 7,198,257
Other income (expenses)
Interest income 69,689 76,312
Subsidy income 433,504 483,067
Interest expenses (154,812) (163,795)
Others (968) (3,033)
---- ------
Total other income (expenses) 347,413 392,551
Income before income tax 2,987,789 7,590,808
Income tax provision 928,380 1,929,808
------- ---------
Net income 2,059,409 5,661,000
Less: Net income attributable to
non-controlling interests 140,251 368,824
------- -------
NET INCOME ATTRIBUTABLE TO SKYPEOPLE
FRUIT JUICE, INC. $1,919,158 $5,292,176
========== ==========
Earnings per share:
Basic earnings per share $0.07 $0.20
Diluted earnings per share $0.07 $0.20
Weighted average number of shares outstanding
Basic 25,690,402 25,690,402
Diluted 26,661,500 26,662,599
Comprehensive Income
Net income $2,059,409 $5,661,000
Foreign currency translation
adjustment 156,571 1,141,578
------- ---------
Total Comprehensive income $2,215,980 $6,802,578
Comprehensive income attributable to
non-controlling interests 146,732 413,802
Comprehensive income attributable to
SkyPeople Fruit Juice, Inc. $2,069,248 $6,388,776
========== ==========
SKYPEOPLE FRUIT JUICE, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
For the Three month Ended March 31,
2012 2011
CASH FLOWS FROM OPERATING ACTIVITIES
Net income $2,059,409 $5,661,000
Adjustments to reconcile net income to
net cash provided by operating
activities
Depreciation and amortization 706,064 865,108
Deferred income tax assets 60,515 -
Changes in operating assets and
liabilities
Accounts receivable 14,225,403 10,143,930
Other receivable 2,009 (108,542)
Advances to suppliers and other
current assets (109,276) (28,135)
Inventories 1,163,961 (837,263)
Accounts payable (875,022) 2,457,839
Accrued expenses (1,233,484) (1,699,172)
Income tax payable (1,055,393) (2,451,649)
Advances from customers (178,673) (394,573)
Net cash provided by operating
activities 14,765,513 13,608,543
CASH FLOWS FROM INVESTING ACTIVITIES
Additions to property, plant and
equipment (1,320,608) (60,901)
Prepayment for other assets (13,621) (225,513)
Net cash used in investing activities (1,334,229) (286,414)
CASH FLOWS FROM FINANCING ACTIVITIES
Decreased in restricted cash 284,361 103,574
Short-term notes payable (284,361) (103,574)
Proceeds from short-term bank loans 3,170,879 2,486,808
Repayment of short-term bank loans (1,139,578) -
Net cash provided by financing
activities 2,031,301 2,486,808
Effect of change in exchange rate 96,897 560,614
NET INCREASE IN CASH AND CASH
EQUIVALENTS 15,559,482 16,369,551
Cash and cash equivalents, beginning
of period 61,154,007 49,350,385
Cash and cash equivalents, end of
period $76,713,489 $65,719,936
SUPPLEMENTAL DISCLOSURES OF CASH FLOW
INFORMATION
Cash paid for interest $154,812 $163,795
Cash paid for income taxes $1,923,258 $4,381,457
SUPPLEMENTARY DISCLOSURE OF
SIGNIFICANT NON-CASH TRANSACTION
Transferred from other assets to
property, plant $5,158,425 $445,487
and equipment and construction in
process
The notes in the Company's 10-Q are an integral part of these consolidated financial statements.
SOURCE SkyPeople Fruit Juice, Inc.
