NEW YORK, Nov. 9, 2009 (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, 2009.
Revenue for the third quarter of 2009 was $17.7 million, a 39.9% increase from $12.7 million in the third quarter of 2008. The increase in revenue was driven by the contribution of sales of electric vehicles by our wholly-owned subsidiary, Wuxi Zhongqiang Autocycle Co., Ltd. ("Wuxi ZQ"), which the Company acquired in the second quarter of 2009. In the third quarter of 2009, sales of electric vehicles from Wuxi ZQ were $6.7 million or 37.9% of total revenue. Large capacity battery cells generated $3.3 million in sales, or 18.5% of total revenue in the third quarter of 2009. Medium capacity battery cells generated $1.6 million in sales, or 8.8% of total revenue in the third quarter of 2009. Small capacity battery cells generated $1.1 million in sales, or 6.1% of total revenue in the third quarter of 2009. Miner's lamps containing ABAT battery cells generated $5.1 million in sales, or 28.6% of total revenue in the third quarter of 2009. Sales from medium capacity battery cells in the third quarter of 2009 exclude intercompany sales of approximately $1.8 million to Wuxi ZQ. Sales to Wuxi ZQ were previously categorized as medium capacity cell battery sales.
Gross profit for the third quarter of 2009 was $7.6 million, a 29.6% increase from $5.9 million in the third quarter of 2008. Gross margin was 43.1% in the third quarter 2009, compared to 46.5% in the third quarter of 2008. Lower gross margin performance was a result of sales of electrical vehicles, a lower margin product. During the same period gross margin from battery sales increased, due to a higher proportion of battery sales from higher margin battery products, primarily large capacity battery cells and miner's lamps.
Operating income for the third quarter of 2009 was $5.2 million, a 3.0% increase from $5.1 million during the third quarter of 2008. Operating expenses increased to $2.4 million in the third quarter of 2009 from $795,336 in the third quarter of 2008. The increase reflects increased selling and administrative expenses at Wuxi ZQ. In addition, ABAT's U.S. office incurred higher administrative expenses such as salaries, legal fees and marketing expenses in the third quarter of 2009. The Company also recognized higher non-cash stock and option compensation amortization expense in the third quarter of 2009.
Net income in the third quarter of 2009 was $4.8 million or $0.08 per diluted share, a 10.2% increase from $4.4 million, or $0.08 per diluted share in the third quarter of 2008. The increase in net income reflected a $336,849 gain from the forgiveness of interest expenses related to a loan associated with our subsidiary Wuxi ZQ. Commenting on the results, Mr. Zhiguo Fu, Chairman and CEO of Advanced Battery Technologies, stated, "We are pleased with our results during the third quarter. Following our acquisition of Wuxi ZQ in May 2009, we are excited to see positive momentum in the electric vehicle business continue in the third quarter, which helped to augment sales by signing new production contracts and expanding the international scope of our operations during the quarter."
"As we continue to integrate the operations of Wuxi ZQ into those of Advanced Battery, we are focused on expanding production capacities and enhancing R&D capabilities in an attempt to realize the synergies of ABAT and assure the Company of a leading position within the battery technology and vehicle production industry. We are confident that our ongoing efforts combined with our proven ability to deliver high-quality products continue to help ABAT tackle sales opportunities in both domestic and international markets being created by the worldwide movement towards more economical and cleaner high performance vehicles."
Balance Sheet
As of September 30, 2009, the Company had $33.8 million of cash and cash equivalents, compared to $32.7 million of cash and cash equivalents at December 31, 2008. The Company's working capital on September 30, 2009 totaled $56.9 million.
As of October 30, 2009, the Company had a backlog of over $67 million including a battery backlog of approximately $55 million, all of which is expected to be delivered in the next 12 months.
Conference Call
Management will host a conference call at 8:30 am ET, on Tuesday November 10, 2009 to discuss its third quarter 2009 financial results. Listeners may access the call by dialing #1-877-857-6144 or #1-719-325-4776 for international callers.
A replay of the call will be available from November 10, 2009 through November 17, 2009. Listeners may access the replay by dialing #1-888-203-1112 or #1-719-457-0820 for international callers; passcode: 4176870.
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. Wuxi Zhongqiang Autocycle Co., Ltd, founded in 2002, develops and manufactures various types of electric vehicles. Wuxi Zhongqiang owns three types of products listed in the E-Bike directory, with more than 20 varieties: electric bikes; agricultural transport vehicles for practical transportation; sport utility e-vehicles such as scooters, off-road vehicles, go-karts, snow scooters, sea scooters, as well as underwater propeller vehicles. Wuxi Zhongqiang products are exported to countries and regions in Europe, the United States and Asia. 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 AND OTHER COMPREHENSIVE INCOME (UNAUDITED) For Three-month ended For Nine-month ended September 30, September 30, 2009 2008 2009 2008 Revenues $17,714,278 $12,662,585 $42,171,598 $34,442,838 Cost of Goods Sold 10,087,228 6,776,437 23,197,017 17,542,233 ----------- ----------- ----------- ----------- Gross Profit 7,627,050 5,886,148 18,974,580 16,900,605 Operating Expenses Research & Development expenses 118,764 -- 307,236 -- Selling, general and administrative 2,264,173 795,336 6,900,571 1,947,200 ----------- ----------- ----------- ----------- Operating income 5,244,112 5,090,812 11,766,773 14,953,405 ----------- ----------- ----------- ----------- Other Income (Expenses) Interest income 76,841 51,925 247,387 68,037 Interest (expense) (120,417) -- (326,636) -- Equity loss from unconsolidated entity 5,190 -- (62,470) -- Gain on bargain purchase -- -- 9,909,320 -- Forgiveness of debt 336,849 336,849 Other income (expenses) (160) -- 13,548 -- ----------- ----------- ----------- ----------- Total other income (expenses) 298,302 51,925 10,117,997 68,037 ----------- ----------- ----------- ----------- Income Before Income Taxes 5,542,414 5,142,737 21,884,770 15,021,442 Provision for Income Taxes (Benefit) Income tax-Current 726,337 770,777 2,010,030 2,125,733 Income tax- Deferred -- -- 3,468,262 -- ----------- ----------- ----------- ----------- Net income $ 4,816,077 $ 4,371,960 $16,406,478 $12,895,709 Other Comprehensive Income Foreign currency translation adjustment (28,402) 539,959 (57,938) 3,174,659 ----------- ----------- ----------- ----------- Comprehensive Income $ 4,787,675 $ 4,911,919 $16,348,539 $16,070,368 =========== =========== =========== =========== Earnings per share Basic $ 0.09 $ 0.10 $ 0.33 $ 0.30 =========== =========== =========== =========== Diluted $ 0.08 $ 0.08 $ 0.28 $ 0.25 =========== =========== =========== =========== Weighted average number of common shares outstanding Basic 52,970,305 44,349,487 49,676,366 42,456,824 =========== =========== =========== =========== Diluted 61,342,040 52,527,987 57,974,862 50,635,324 ----------- ----------- ----------- ----------- ADVANCED BATTERY TECHNOLOGIES, INC. CONDENSED CONSOLIDATED BALANCE SHEETS ASSETS ------ September 30, December 31, 2009 2008 (Unaudited) ------------ ------------ Current assets: Cash and cash equivalents $ 33,839,657 $ 32,746,155 Accounts receivable, net 22,984,388 14,708,078 Inventories, net 6,144,293 1,748,115 Loan receivable,net 1,622,417 1,600,000 Other receivables 1,334,800 240,726 Advance to suppliers,net 4,550,827 246,163 ------------ ------------ Total Current Assets 70,476,382 51,289,237 ------------ ------------ Property, plant and equipment, net of accumulated depreciation of $9,856,869 as of September 30, 2009 and $2,803,788 as of December 31, 2008 47,161,776 16,635,843 ------------ ------------ Total Fixed Assets 47,161,776 16,635,843 ------------ ------------ Other assets: Investment in unconsolidated entity 975,079 1,037,550 Investment advance -- 3,000,000 Deposit for long-term assets 1,399,130 1,748,363 Intangible assets, net 14,546,530 1,548,158 Goodwill 2,487,185 2,487,080 Other assets 47,975 6,000 ------------ ------------ Total other assets 19,455,899 9,827,151 ------------ ------------ Total Assets $137,094,057 $ 77,752,231 ============ ============ LIABILITIES AND STOCKHOLDERS' EQUITY ------------------------------------ Current liabilities: Short-term loan $ 7,333,674 -- Accounts payable 2,686,256 415,850 Advance from Customers 522,843 80,479 Accrued expenses and other payables 1,793,834 784,070 Loan from officers -- 17,236 Tax payable 1,232,245 -- ------------ ------------ Total Current Liabilities 13,568,852 1,297,635 Long term liabilities: Deferred tax liability 3,468,262 -- Total Liabilities 17,037,114 1,297,635 ------------ ------------ Stockholders' Equity Preferred stock, $0.001 face value, 5,000,000 shares authorized; 500 shares issued and 500 shares outstanding as of September 30, 2009 and 0 shares issued and outstanding as of December 31, 2008 $ 1 -- Common stock, $0.001 par value, 150,000,000 shares authorized; 62,311,947 shares issued and 62,117,366 shares outstanding as of September 30, 2009 and 54,781,577 shares issued and 54,662,067 shares outstanding as of December 31, 2008 62,312 54,782 Additional paid-in-capital 66,740,056 39,289,991 Accumulated other comprehensive income 5,954,537 6,012,475 Retained earnings 47,799,528 31,393,050 Less: Cost of treasury stock (194,581 and 119,510 shares as of September 30,2009 and December 31, 2008) (499,490) (295,702) ------------ ------------ Total Stockholders' Equity 120,056,943 76,454,596 ------------ ------------ Total Liabilities and Stockholders' Equity $137,094,057 $ 77,752,231 ============ ============