NEW YORK, March 21, 2011 (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 ended December 31, 2010.
Total revenues of $97.1 million for 2010 represented an increase of $33.6 million or 52.8%, compared to $63.6 million for 2009. 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 for 2010 were $49.2 million as compared to $20.3 million for 2009. The increase in vehicle sales was attributable to (a) the fact that 2009 results include only the period from May 4, 2009 to December 31, 2009, and (b) efforts by our management to make Wuxi ZQ more responsive to the requirements of its distributors.
Mr. Zhiguo Fu, CEO of ABAT, stated, "We are pleased to report an increase in our revenue attributable to electric vehicles and medium batteries. This has been beneficial to the profitability of our overall business. In order to meet higher demand from both battery and electric scooter markets, the company intends to accelerate growth by building more facilities and expanding our marketing network."
Gross profit for 2010 was $45.9 million, a 61.7% increase from $28.4 million for 2009. The increased profitability of our sales is mainly attributable to improved production efficiencies in our electric vehicles operations. Since the acquisition of Wuxi ZQ in May 2009, we have worked aggressively to control production costs at Wuxi ZQ. As a result, the gross margin on our sales of electric vehicles was over 40%, compared to 33% in 2009. The overall result was an increase in our gross margin from 44.7% in 2009 to 47.3% in 2010.
Net income attributable to common shares increased 68.5% to $36.7 million in 2010 from $21.8 million in 2009. Diluted earnings per share were $0.48 for fiscal year 2010 compared to $0.36 in fiscal year 2009. At December 31, 2010 the Company had a strong balance sheet, with $111.1 million in cash and cash equivalents and a working capital balance of $131.2 million. The primary reason for the improvement in working capital and cash was the strong positive operating cash flows and the equity offering the Company completed in December 2010.
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 manufacturer, 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.
| ADVANCED BATTERY TECHNOLOGIES, INC. | ||
| CONSOLIDATED BALANCE SHEETS | ||
|
December 31, 2010 |
December 31, 2009 |
|
| (Restated) | ||
| ASSETS | ||
| Current Assets: | ||
| Cash and cash equivalents | $111,128,070 | $52,923,358 |
| Accounts receivable, net | 16,084,366 | 22,406,927 |
| Inventories, net | 5,224,553 | 3,680,098 |
| Loan receivable | 1,600,000 | 1,600,000 |
| Other receivables | 272,888 | 107,751 |
| Advance to suppliers, net | 4,015,313 | 7,940,129 |
| Deferred tax asset | 447,305 | -- |
| Total Current Assets | 138,772,495 | 88,658,263 |
| Property, plant and equipment, net | 57,452,244 | 47,248,600 |
| Other assets: | ||
| Investment in unconsolidated entity | 776,860 | 785,057 |
| Deposit for investment | 11,721,468 | 1,457,034 |
| Deposit for long-term assets | 2,307,350 | 2,860,882 |
| Intangible assets, net | 13,957,505 | 14,317,502 |
| Goodwill | 2,566,337 | 2,472,311 |
| Other assets | 44,211 | 26,705 |
| Total Other Assets | 31,373,731 | 21,919,491 |
| TOTAL ASSETS | $227,598,470 | $157,826,354 |
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||
| Current Liabilities: | ||
| Short-term loan | $-- | $2,916,071 |
| Accounts payable | 1,282,410 | 670,254 |
| Advances from customers | 10,074 | 228,871 |
| Accrued expenses and other payables | 441,220 | 1,389,130 |
| Tax payable | 5,887,027 | -- |
| Total Current Liabilities | 7,620,731 | 5,204,326 |
| Long Term Liabilities: | ||
| Deferred tax liability | 3,025,847 | 3,025,847 |
| Warrant liability | 11,749,803 | 17,221,335 |
| Total Liabilities | 22,396,381 | 25,451,508 |
| Commitments and Contingencies | ||
| Stockholders' Equity | ||
|
Preferred stock, $0.001 face value; 5,000,000 shares authorized; 2 shares issued and 2 shares outstanding as of December 31, 2010 and 2009 |
-- | -- |
|
Common stock, $0.001 par value; 150,000,000 shares authorized; 76,619,220 shares issued and 76,424,639 shares outstanding as of December 31, 2010 and 68,778,112 shares issued and 68,583,531 shares outstanding as of December 31, 2009 |
76,619 | 68,778 |
| Additional paid-in capital | 100,198,536 | 70,018,939 |
| Accumulated other comprehensive income | 11,414,192 | 5,500,705 |
| Retained earnings | 94,012,232 | 57,285,914 |
|
Less: Cost of treasury stock (194,581 shares as of December 31, 2010 and 2009) |
(499,490) | (499,490) |
| Total Stockholders' Equity | 205,202,089 | 132,374,846 |
|
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY |
$227,598,470 | $157,826,354 |
| ADVANCED BATTERY TECHNOLOGIES, INC. | |||
| CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME | |||
| FOR THE YEARS ENDED DECEMBER 31, 2010, 2009 AND 2008 | |||
|
For The Years Ended December 31, |
|||
| 2010 | 2009 | 2008 | |
| (Restated) | (Restated) | ||
| Revenue | $97,128,668 | $63,561,925 | $45,172,111 |
| Cost of Goods Sold | 51,231,779 | 35,169,478 | 23,122,610 |
| Gross Profit | 45,896,889 | 28,392,447 | 22,049,501 |
| Operating Expenses | |||
| Research & Development expenses | 204,567 | 348,297 | 4,463 |
| Selling, general and administrative expenses | 7,842,858 | 9,890,173 | 3,263,409 |
| Operating Income | 37,849,464 | 18,153,977 | 18,781,629 |
| Other Income (Expenses) | |||
| Interest income | 410,001 | 290,774 | 124,487 |
| Interest (expense) | (47,653) | (501,096) | -- |
| Equity gain (loss) from unconsolidated entity | (8,197) | (17,401) | (90,707) |
| Forgiveness of debt | -- | 336,906 | -- |
| Other income (expenses) | 265,745 | 16,963 | 3,118 |
| Gain on bargain purchase | -- | 8,645,276 | -- |
| Change in fair value of warrants | 5,471,531 | 666,839 | 4,090,812 |
| Total Other Income | 6,091,427 | 9,438,261 | 4,127,710 |
| Income before Income Tax | 43,940,891 | 27,592,238 | 22,909,339 |
| Provision for Income Tax | |||
| Income tax - Current | 7,650,861 | 2,764,339 | 2,722,407 |
| Income tax - Deferred | (436,288) | 3,025,847 | -- |
| Net Income | $36,726,318 | $21,802,052 | $20,186,932 |
| Other Comprehensive Income | |||
| Foreign currency translation adjustment | 5,913,487 | (511,770) | 2,912,481 |
| Comprehensive Income | $42,639,805 | $21,290,282 | $23,099,413 |
| Earnings per share | |||
| Basic | $0.53 | $0.42 | $0.46 |
| Diluted | $0.48 | $0.36 | $0.39 |
|
Weighted average number of common shares outstanding |
|||
| Basic | 69,260,213 | 52,124,814 | 43,493,492 |
| Diluted | 76,404,451 | 60,222,687 | 51,671,992 |
| ADVANCED BATTERY TECHNOLOGIES, INC. | |||
| CONSOLIDATED STATEMENTS OF CASH FLOWS | |||
| FOR THE YEARS ENDED DECEMBER 31, 2010, 2009 AND 2008 | |||
|
For The Years Ended December 31, |
|||
| 2010 | 2009 | 2008 | |
| (Restated) | (Restated) | ||
| Cash Flows from Operating Activities: | |||
| Net income | $36,726,318 | $21,802,052 | $20,186,932 |
|
Adjustments to reconcile net income to net cash provided by (used in) operating activities: |
|||
| Gain on bargain purchase | -- | (8,645,276) | -- |
| Deferred income tax | (436,288) | 3,025,847 | -- |
| Depreciation and amortization | 4,116,212 | 2,629,643 | 767,235 |
| Amortization of deferred consulting expenses | 116,375 | 137,562 | 309,237 |
| Amortization of stock-based compensation expense | 1,599,563 | 1,925,653 | 599,476 |
| Equity loss of unconsolidated entity | 8,197 | 17,401 | 90,707 |
|
Provision for doubtful accounts and inventory valuation allowance |
296,241 | (208,876) | 64,161 |
| Forgiveness of debt | -- | (336,849) | -- |
| Investment impairment loss | -- | 235,091 | 371,743 |
| Loss on disposal of fixed asset | 5,017 | -- | 55,187 |
| Change in fair value of warrants | (5,471,532) | (666,839) | (4,090,812) |
| Changes in operating assets and liabilities: | |||
| Accounts receivable, net | 7,813,327 | (6,514,738) | 1,002,020 |
| Inventories, net | (1,369,905) | (274,638) | (636,296) |
| Other receivables and other assets | (224,235) | (13,252) | 144,226 |
| Advance to suppliers | 3,316,766 | (5,592,320) | 1,362,804 |
|
Accounts payable, accrued expenses and other payables |
(251,303) | (9,089,636) | 196,288 |
| Advances from customers | (221,898) | (1,164,942) | 5,363 |
| Tax payable | 5,572,511 | (174,435) | -- |
|
Net Cash Provided By (Used in) Operating Activities |
51,595,366 | (2,908,552) | 20,428,271 |
| Cash Flows from Investing Activities: | |||
| Loan receivable | -- | -- | (1,600,000) |
| Deposit for property, plant and equipment | (770,549) | (2,828,783) | (1,748,363) |
| Purchase of property, plant and equipment | (11,610,479) | (9,333,367) | (3,191,802) |
| Cash acquired from business combination | -- | 832,555 | -- |
| Payment made on deposit for investment | (9,957,588) | (1,463,913) | (3,000,000) |
| Acquisition of intangible assets | (146,894) | -- | -- |
| Investment in unconsolidated entity | -- | -- | (1,500,000) |
| Net Cash (Used in) Investing Activities | (22,485,510) | (12,793,508) | (11,040,165) |
| Cash Flows from Financing Activities: | |||
| Repayment of bank loan | (2,950,396) | (4,389,735) | -- |
| Repayment of notes payable | -- | -- | (411,263) |
| Purchase of treasury stock | -- | (203,788) | (295,702) |
| Proceeds from equity financing, net | 28,471,500 | -- | -- |
| Proceeds from issuance of stock, net | -- | 40,788,717 | 20,356,480 |
| Repayment of officer loan | -- | (140,059) | (718,465) |
| Net Cash Provided By Financing Activities | 25,521,104 | 36,055,135 | 18,931,050 |
|
Effect of Exchange Rate Changes on Cash and Cash Equivalents |
3,573,752 | (175,872) | 1,722,176 |
| Increase in cash and cash equivalents | 58,204,712 | 20,177,203 | 30,041,332 |
| Cash and Cash Equivalents - Beginning of Year | 52,923,358 | 32,746,155 | 2,704,823 |
| Cash and Cash Equivalents - End of Year | $111,128,070 | $52,923,358 | $32,746,155 |
|
SUPPLEMENTAL CASH FLOW INFORMATION: |
|||
| During the year, cash was paid for the following: | |||
| Interest expense | $47,653 | $395,496 | $-- |
| Income tax | $3,264,431 | $1,083,556 | $2,881,966 |
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NON-CASH INVESTING AND FINANCING ACTIVITIES: |
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|
Common stock issued for stock-based compensation |
$1,215,255 | $1,162,850 | $139,403 |
|
Fair value of warrants issued to placement agent in financing |
$619,148 | $1,159,370 | $917,920 |
| Common stock issued for acquisition of Wuxi ZQ | $-- | $9,870,000 | $-- |
| Options issued to executives for service | $-- | $777,660 | $-- |