NEW YORK and HARBIN, China, Nov. 10, 2008 (GLOBE NEWSWIRE) -- Advanced Battery Technologies, Inc. (Nasdaq:ABAT), a leading developer, manufacturer and distributor of rechargeable Polymer Lithium-Ion (PLI) batteries, today announced its financial results for the third quarter ended on September 30, 2008.
Financial Highlights for the Third Quarter 2008:
* Revenue increased 47.7% year over year to $12.7 million * Gross profit increased 47.8% year over year to $5.9 million * Income from operations increased 41.7% year over year to $5.1 million * Net income increased 21.6% year over year to $4.4 million
Mr. Zhiguo Fu, Chairman and CEO of Advanced Battery Technologies, stated, ''We are very pleased with our performance in the third quarter of 2008. The market for our large and medium capacity battery cells continues to expand, particularly for usage in electric sanitation vehicles, electric scooters, electric bicycles, power tools, miners' lamps, searchlights and other applications.
During the quarter, we completed an equity placement and raised $21.5 million. Our primary purpose was to fund expansion of our assembly lines to meet growing demand. We will continue to strive to improve efficiencies, to maximize our production process, and to increase margins as demand for our products continues to grow."
Revenue for the third quarter was $12.7 million, an increase of $4.1 million, or 47.7% from $8.6 million for the same period in 2007. The increase in revenue was driven by increased sales volume, especially from the large and medium capacity battery cells. Large capacity battery cells generated $3.0 million in sales or 23% of total revenue for the quarter. Medium capacity battery cells generated $8.2 million in sales or 65% of total revenue in the third quarter of 2008. Small capacity battery cells generated $1.5 million in sales or 12% of total revenue in the third quarter of 2008
In the third quarter of 2008, gross profit increased approximately 47.8% to $5.9 million from $4.0 million in the same period in 2007. Gross margin was 46.5% in the third quarter 2008, compared with 46.4% in the prior year's period. Gross margin performance reflects Company's mix shift to higher margin products, higher utilization of raw materials as well as improved production efficiency.
In the third quarter of 2008, operating income increased approximately 41.7% to $5.1 million from $3.6 million during the same period last year. Operating expenses increased 104.1% to $795,336 from $389,613 in the prior year's period. The increase reflected non-cash stock compensation expense of $234,000 and increased expenses related to the operation of the Company's production facility in China and the its U.S.-based offices.
Net income in the third quarter 2008 increased 21.6%, to $4.4 million, or $0.08 per diluted share, compared to $3.6 million or $0.07 per diluted share in the third quarter 2007.
Balance Sheet
As of September 30, 2008, the Company had $40.6 million of cash and cash equivalents, compared to $22.2 million at June 30, 2008, and $11.4 million as of March 31, 2008.
Backlog is approximately $62 million as of November 7, 2008. These firm orders are due for delivery within the next 15 months.
Guidance
For the fourth quarter 2008, the Company currently anticipates revenue of approximately $12 million and net income of $4 million, increases of 40.0% and 11.2% respectively over the same period in 2007. For the full year 2008, the Company is also anticipating approximately $46 million in revenue and $17 million in net income, increases of 44.2% and 66.6% respectively over 2007.
About Advanced Battery Technologies, Inc
Advanced Battery Technologies, Inc., founded in September 2002, develops, manufactures and distributes rechargeable Polymer Lithium-Ion (PLI) batteries. The Company's products include rechargeable PLI batteries for electric automobiles, motorcycles, mine-use lamps, notebook computers, walkie-talkies and other electronic devices. ABAT's batteries combine high-energy chemistry with state-of-the-art polymer technology to overcome many of the shortcomings associated with other types of rechargeable batteries. The Company has a New York office, with its executive offices and manufacturing facilities in China. For more information about Advanced Battery Technologies, Inc. (ABAT), please visit: http://www.abat.com.cn.
Safe Harbor Statement
Certain statements in this release and other written or oral statements made by or on behalf of the Company are "forward looking statements" within the meaning of the federal securities laws. Statements regarding future events and developments and our future performance, as well as management's expectations, beliefs, plans, estimates or projections relating to the future are forward-looking statements within the meaning of these laws. The forward looking statements are subject to a number of risks and uncertainties including market acceptance of the Company's services and projects and the Company's continued access to capital and other risks and uncertainties. The actual results the Company achieves may differ materially from those contemplated by any forward-looking statements due to such risks and uncertainties. These statements are based on our current expectations and speak only as of the date of such statements.
ADVANCED BATTERY TECHNOLOGIES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
For the three and nine months ended September 30, 2008 and 2007
Three-Month Ended Nine-Month Ended
September 30, September 30,
2008 2007 2008 2007
(Restated) (Restated)
------------ ------------ ------------ ------------
Revenues $ 12,662,585 $ 8,573,009 $ 34,442,838 $ 21,622,092
Cost of
Goods
Sold 6,776,437 4,591,683 17,542,233 11,413,513
------------ ------------ ------------ ------------
Gross Profit 5,886,148 3,981,326 16,900,605 10,208,579
Operating
Expenses
Selling,
general and
administra-
tive 795,336 389,613 1,947,200 2,054,460
------------ ------------ ------------ ------------
Operating
income 5,090,812 3,591,713 14,953,405 8,154,119
Other Income
(Expenses) 51,925 4,957 68,038 10,593
------------ ------------ ------------ ------------
Income Before
Income Taxes 5,142,737 3,596,670 15,021,443 8,164,712
Provision for
Income Taxes 770,777 -- 2,125,733 --
------------ ------------ ------------ ------------
Net Income $ 4,371,960 $ 3,596,670 $ 12,895,710 $ 8,164,712
Other Comprehensive
Income
Foreign
currency
translation
adjustment 539,959 475,355 3,174,659 1,079,230
------------ ------------ ------------ ------------
Comprehensive
Income $ 4,911,919 $ 4,072,025 $16,070,369 $ 9,243,942
============ ============ ============ ============
Weighted
average
number of
common shares
outstanding
Basic 44,349,487 40,892,198 42,456,824 40,880,714
============ ============ ============ ============
Diluted 52,527,987 49,645,031 50,635,324 49,633,547
============ ============ ============ ============
Earnings per
share
Basic $ 0.10 $ 0.09 $ 0.30 $ 0.20
============ ============ ============ ============
Diluted $ 0.08 $ 0.07 $ 0.25 $ 0.16
============ ============ ============ ============
ADVANCED BATTERY TECHNOLOGIES, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
ASSETS
September 30, December 31,
2008 2007
------------ -----------
(Unaudited) (Audited)
Current assets:
Cash and cash equivalents $ 40,639,841 $ 2,704,823
Accounts receivable 13,190,640 16,026,604
Inventory 1,472,785 1,159,474
Other receivables 31,815 84,950
Loan receivable 2,470,000
Advance to suppliers 1,746,109 1,608,967
------------ -----------
Total Current Assets 59,551,190 21,584,818
------------ -----------
Property, plant and equipment, net of
accumulated depreciation of
$2,773,688 as of September 30, 2008
and 2,016,275 as of December 31, 2007 13,740,323 13,243,236
------------ -----------
Other assets:
Advance payment for investment 200,000
Security deposit 6,000 6,000
Intangible assets, net 1,609,072 1,563,037
Goodwill 2,499,021 2,326,119
------------ -----------
Total other assets 4,314,093 3,895,156
------------ -----------
Total Assets $ 77,605,606 $ 38,723,210
============ ============
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 984,002 $ 406,454
Customer deposits 123,110 75,116
Accrued expenses and other payables 1,674,530 618,173
Loan from officers 1,217,986 735,700
------------ -----------
Total Current Liabilities 3,999,629 1,835,444
Long-term liabilities:
Note payable -- 411,263
------------ -----------
Total Liabilities 3,999,629 2,246,707
------------ -----------
Commitments and Contingencies
Stockholders' Equity
Common stock, $0.001 par value,
60,000,000 shares authorized;
54,781,577 shares issued and
outstanding as of September 30, 2008
and 49,688,998 shares issued and
outstanding as of December 31, 2007 54,782 49,689
Additional paid-in-capital 39,083,904 18,029,891
Accumulated other comprehensive
income 6,274,653 3,099,994
Retained earnings 28,192,639 15,296,930
------------ -----------
Total Stockholders' Equity 73,605,978 36,476,504
------------ -----------
Total Liabilities and Stockholders'
Equity $ 77,605,606 $ 38,723,210
============ ============