NEW YORK, March 31, 2010 (GLOBE NEWSWIRE) -- Advanced Battery Technologies, Inc. (Nasdaq:ABAT), a leading developer, manufacturer and distributor of rechargeable Polymer Lithium-Ion (PLI) batteries as well as a manufacturer of electric vehicles, today announced financial results for the year ending December 31, 2009.
The Company had total revenues of $63,561,925 for 2009, an increase of $18,389,814 or 40.7%, compared to $45,172,111 for 2008. The increase in revenues was primarily due to the contribution of sales from the electric vehicle business, which the Company acquired on May 4, 2009. Sales of electric vehicles after May 4, 2009 totaled $20,329,895. At the same time, the acquisition of Wuxi ZQ resulted in flat year-to-year results in battery sales, since Wuxi Angell had been a major customer of the Company's battery business. Sales of batteries to Wuxi ZQ are included in the Company's 2008 financial results and excluded from the 2009 financial results, since the Company acquired ownership of Wuxi ZQ in May 2009. If sales to Wuxi ZQ are excluded from 2008 results, revenue from battery sales increased by around $4.7 million in 2009, compared to 2008.
Mr. Zhiguo Fu, CEO of ABAT, stated, "The growth in our battery business has been accompanied by a reorientation in the relative importance of different battery sizes. When we first entered the battery business in 2003 and during the following years, the bulk of our sales were small capacity batteries, primarily those used in consumer electronic devices. Our growth, however, has been propelled by customers for our medium capacity batteries used for electric scooters, electric bicycles, power tools, miners' lamps, searchlights, etc. and large capacity batteries used for electric sanitation vehicles, stationary applications, and other large scale battery applications."
Gross profit for 2009 was $28.39 million, a 28.8% increase from $22.04 million for the same period in 2008. During 2009 Wuxi ZQ achieved only approximately 33.2% gross margin, while the Company's battery manufacturing operations achieved a 49.9% gross margin. The overall result of combining the battery operations with those of Wuxi ZQ was a reduction in a gross margin from 48.8% in 2008 to 44.7% in 2009.
Operating income for 2009 was $16.89 million, a 10.1% decrease from $18.78 million during the same period in 2008. Operating expenses increased to $11.50 million in 2009 from $3.27 million in the same period in 2008. The increase was almost entirely attributable to the expansion of the Company's operations, as operating expenses in Heilongjiang ZQPT, the Company's main battery production base in China, increased by only $0.20 million during 2009.
Net income attributable to common shares increased 32.7% to $21.4 million from $16.1 million in 2008. Diluted earnings per share were $0.35 for fiscal year 2009 compared to $0.31 in fiscal year 2008. The increase in net income reflected (1) a one-time gain on purchase of $9.9 million and a related $3.5 million deferred tax provision associated with the acquisition of Wuxi ZQ on May 4, 2009 and (2) a non-cash other income of $0.67 million associated with the revaluation of outstanding warrants. As of December 31, 2009 the Company had a working capital balance of $83,453,937, an improvement from a working capital balance of $49,991,602 at December 31, 2008. The Company had $52,923,358 cash, an increase of $20,177,203 from a cash balance of $32,746,155 at December 31, 2008.
On February 28, 2010 the Company recorded a backlog of approximately $49.7 million for delivery throughout the next 12 months, including a battery backlog of approximately $44.3 million.
Conference Call
Management will host a conference call at 8:30 am ET, on April 1, 2010 to discuss its year end 2009 financial results. Listeners may access the call by dialing 866-866-1333 or 404-260-1421 for international callers.
A replay of the call will be available from April 1, 2010 through April 10, 2010. Listeners may access the replay by dialing 866-430-1300 or 404-260-1414 for international callers; enter pin: 4804300#, then press 4 to listen , then enter confirmation number 201003292186465#.
About Advanced Battery Technologies, Inc.
Advanced Battery Technologies, Inc. (Nasdaq:ABAT), 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. Early in 2009, the Company acquired Wuxi Angell Autocycle Co. Ltd., an electric vehicle business, and renamed it Wuxi Zhongqiang Autocycle Co., Ltd. ("Wuxi ZQ"). The Company has a New York office, with its executive offices and manufacturing facilities in China.
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.
| ASSETS | ||
| December 31, | December 31, | |
| 2009 | 2008 | |
| Current assets: | ||
| Cash and cash equivalents | 52,923,358 | 32,746,155 |
| Accounts receivable, net | 22,406,927 | 14,708,078 |
| Short term investment | 0 | |
| Inventories, net | 3,680,098 | 1,748,115 |
| Loan receivable,net | 1,600,000 | 1,600,000 |
| Other receivables | 107,750 | 240,725 |
| Advance to suppliers, net | 7,940,129 | 246,163 |
| Total Current Assets | 88,658,263 | 51,289,237 |
|
Property, plant and equipment, net of accumulated depreciation of $10,477,610 as of December 31, 2009 |
||
| and $2,803,788 as of December 31, 2008 | 47,248,600 | 16,635,843 |
| Total Fixed Assets | 47,248,600 | 16,635,843 |
| Other assets: | ||
| Investment in unconsolidated entity | 785,056 | 1,037,550 |
| Investment advance | 1,457,034 | 3,000,000 |
| Deposit for long-term assets | 2,860,882 | 1,748,363 |
| Intangible assets, net | 14,317,502 | 1,548,158 |
| Goodwill | 2,472,311 | 2,487,080 |
| Other assets | 26,705 | 6,000 |
| Total other assets | 21,919,491 | 9,827,151 |
| Total Assets | 157,826,354 | 77,752,231 |
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||
| Current liabilities: | ||
| Short-term loan | 2,916,071 | 0 |
| Accounts payable | 670,254 | 415,850 |
| Advance from Customers | 228,870 | 80,479 |
| Accrued expenses and other payables | 1,389,129 | 784,070 |
| Loan from officers | 0 | 17,235 |
| Tax payable | 0 | |
| Total Current Liabilities | 5,204,325 | 1,297,635 |
| Long term liabilities: | ||
| Deferred tax liability | 3,468,262 | 0 |
| Warrant liability | 17,221,335 | |
| Total Liabilities | 25,893,923 | 1,297,635 |
| Commitments and Contingencies | ||
| Stockholders' Equity | ||
| Preferred stock, $0.001 face value, 5,000,000 shares authorized; | 0 | 0 |
| 2 shares issued and 2 shares outstanding as of December 31, 2009 | ||
| and 0 shares issued and outstanding as of December 31, 2008 | ||
| Common stock, $0.001 par value, 150,000,000 shares authorized; | ||
|
68,778,112 shares issued and 68,583,531 shares outstanding as of December 31, 2009 |
||
|
and 54,781,577 shares issued and 54,662,067 shares outstanding as of December 31, 2008 |
68,778 | 54,781 |
| Additional paid-in-capital | 74,114,122 | 39,289,991 |
| Accumulated other comprehensive income | 5,496,333 | 6,012,475 |
| Retained earnings | 52,752,687 | 31,393,050 |
|
Less: Cost of treasury stock (194,581 and 119,510 shares as of December 31, 2009 and December 31, 2008) |
-499,490 | -295,702 |
| Total Stockholders' Equity | 131,932,431 | 76,454,596 |
| Total Liabilities and Stockholders' Equity | 157,826,354 | 77,752,231 |
| ADVANCED BATTERY TECHNOLOGIES, INC. | ||
| CONSOLIDATED STATEMENTS OF INCOME AND OTHER COMPREHENSIVE INCOME | ||
| For Years ended December 31, | ||
| 2009 | 2008 | |
| Revenues | 63,561,925 | 45,172,111 |
| Cost of Goods Sold | 35,169,478 | 23,122,610 |
| Gross Profit | 28,392,447 | 22,049,501 |
| Operating Expenses | ||
| Research & Development expenses | 348,297 | 4,463 |
| Investment impairment loss | ||
| Selling, general and administrative | 11,154,217 | 3,263,409 |
| Operating income | 16,889,933 | 18,781,629 |
| Other Income (Expenses) | ||
| Interest income | 290,774 | 124,487 |
| Interest (expense) | -501,096 | 0 |
| Equity loss from unconsolidated entity | -17,401 | -90,707 |
| Gain on bargain purchase | 9,909,320 | 0 |
| Forgiveness of debt | 336,905 | 0 |
| Other income (expenses) | 16,962 | 3,118 |
| Change in fair value of warrants | 666,839 | 0 |
| Total other income (expenses) | 10,702,305 | 36,898 |
| Income Before Income Taxes | 27,592,238 | 18,818,527 |
| Provision for Income Taxes (Benefit) | ||
| Income tax-Current | 2,764,339 | 2,722,407 |
| Income tax-Deferred | 3,468,262 | 0 |
| Net Income before extraordinary items | 21,359,637 | 16,096,120 |
| Gain on purchase of subsidiary, net of tax | 0 | |
| Net income | 21,359,637 | 16,096,120 |
| Other Comprehensive Income | ||
| Foreign currency translation adjustment | -516,141 | 2,912,481 |
| Comprehensive Income | 20,843,496 | 19,008,602 |
| Earnings per share | ||
| Basic | 0.41 | 0.37 |
| Diluted | 0.35 | 0.31 |
| Weighted average number of common shares outstanding | ||
| Basic | 52,124,814 | 43,493,492 |
| Diluted | 60,222,687 | 51,671,992 |
| ADVANCED BATTERY TECHNOLOGIES, INC. | ||
| CONSOLIDATED STATEMENTS OF CASH FLOWS | ||
| For Years ended December 31, | ||
| 2009 | 2008 | |
| Cash Flows From Operating Activities: | ||
| Net income | 21,359,637 | 16,096,120 |
| Adjustments to reconcile net income to net cash | ||
| provided by (used in) operating activities: | ||
| Gain on bargain purchase | -9,909,320 | 0 |
| Deferred income tax | 3,468,262 | 0 |
| Depreciation and amortization | 2,629,643 | 767,235 |
| Amortization of deferred consulting expenses | 137,562 | 309,237 |
| Amortization of stock based compensation expense | 1,925,653 | 599,476 |
| Loan converted to compensation | 0 | |
| Loan converted to compensation | 0 | 0 |
| Equity loss of unconsolidated entity | 17,401 | 90,707 |
| Loss on disposal of fixed asset | 0 | |
| Provision for doubtful accounts and inventory valuation allowance | 0 | |
| Investment Impairment Loss | 0 | |
| Provision for doubtful accounts and inventory valuation allowance | -208,876 | 64,161 |
| Forgiveness of debt | -336,849 | 0 |
| Investment Impairment Loss | 235,091 | 371,743 |
| Loss on disposal of fixed asset | 0 | 55,187 |
| Change in fair value of warrants | -666,839 | 0 |
| Changes in operating assets and liabilities: | ||
| Accounts receivable | -6,514,738 | 1,002,020 |
| Inventories | -274,637 | -636,296 |
| Other receivable & prepayments | -5,605,572 | 1,507,030 |
| Accounts payable, accrued expenses and other payables | -7,825,590 | 196,288 |
| Welfare payable | ||
| Advances from Customer | -1,164,942 | 5,363 |
| Taxes payable | -174,435 | 0 |
| Net cash provided by (used in) operating activities | -2,908,549 | 20,428,271 |
| Cash Flows From Investing Activities: | ||
| Loan receivable | 0 | -1,600,000 |
| Deposit for long-term assets | -2,828,783 | -1,748,363 |
| Purchase of property, plant and equipment | -6,665,374 | -65,672 |
| Cash acquired from subsidiary | 832,554 | 0 |
| Acquistion of Construction in process | 0 | |
| Investment in unconsolidated subsidiary | 0 | |
| Payment made on investment advance | -1,463,913 | -3,000,000 |
| Acquistion of Construction in process | -2,667,993 | -3,126,130 |
| Investment in unconsolidated subsidiary | 0 | -1,500,000 |
| Net cash used in investing activities | -12,793,507 | -11,040,165 |
| Cash Flows From Financing Activities | ||
| Repayment of bank loan | -4,389,735 | 0 |
| Purchase of treasury stock | -203,787 | -295,702 |
| Repayments of notes payable | 0 | -411,263 |
| Proceeds from issuance of stock, net | 40,788,717 | 20,356,480 |
| Proceeds from officer loan | 0 | 0 |
| Repayment of officer loan | -140,059 | -718,465 |
| Proceeds from issuance of common stock, net | 0 | 0 |
| Net cash provided by financing activities | 36,055,135 | 18,931,050 |
| Effect of exchange rate changes on cash and cash equivalents | -175,875 | 1,722,176 |
| Increase in cash and cash equivalents | 20,177,202 | 30,041,332 |
| Cash and Cash Equivalents - Beginning of year | 32,746,155 | 2,704,823 |
| Cash and Cash Equivalents - End of year | 52,923,358 | 32,746,155 |
| SUPPLEMENTAL CASH FLOW INFORMATION: | ||
| During the year, cash was paid for the following: | ||
| Interest expense | 395,496 | 0 |
| Income taxes | 1,083,556 | 2,881,966 |
| NON-CASH INVESTING AND FINANCING ACTIVITIES: | ||
| Common stock issued for incentive stock-based compensation | 1,162,850 | 139,403 |
| Common stock issued for acquisition of Wuxi ZQ | 9,870,000 | 0 |
| Option issued to executives for service | 777,660 | 0 |