Enhanced Production Capacity On Track for Mid-Year 2009 Completion
Battery Sales Backlog Stands At $64 Million
NEW YORK and HARBIN, China, May 11, 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 quarter ended March 31, 2009.
Revenue for the first quarter was $10.7 million, an increase of 6.5% from $10.0 million for the same period in 2008. During the first quarter of 2009, the increase in revenue was driven by increased sales volume particularly from large and medium capacity battery cells, but was constrained by production capacity limitations. Large capacity battery cells generated $3.8 million in sales, or 35.8% of total revenue for the quarter. Medium capacity battery cells (including miner's lamps containing such cells) generated $5.9 million in sales, or 55.0% of total revenue in the first quarter of 2009. Small capacity battery cells generated $976,580 in sales, or 9.1% of total revenue in the first quarter of 2009.
In the first quarter of 2009, gross profit was $5.0 million, essentially flat to the first quarter of 2008. Gross margin was 47.1% in the first quarter 2009, compared to 50.3% in the prior year's period. Gross margin performance reflects a higher proportion of sales from lower margin products, primarily medium capacity battery cells.
In the first quarter of 2009, operating income decreased approximately 7.4% to $4.1 million from $4.5 million during the same period last year. Operating expenses increased 56.7% to $896,319 from $571,890 in the prior year period. The increase reflected non-cash stock compensation expense of approximately $312,246 and increased expenses related to the operation of the Company's production facility in China and its U.S.-based offices.
Net income in the first quarter of 2009 decreased 6.4% to $3.6 million, or $0.07 per diluted share, from $3.8 million, or $0.08 per diluted share, in the first quarter of 2008.
Commenting on the results, Mr. Zhiguo Fu, Chairman and CEO of Advanced Battery Technologies, stated, "We are pleased with the progress that our Company has made despite the difficult economic environment. We were able to achieve suitable revenue growth for the quarter, although we will strive for greater growth in 2009 with increased production capacity and tighter cost controls. As such, we expect the expanded assembly line in Harbin to be operational late in the second quarter of 2009, which will add the production capacity enabling an additional $22 million in revenue generation for 2009. We remain optimistic about our continued growth in the remainder of the year and currently our backlog for the battery business is approximately $64.0 million as of early May."
Wuxi Angell Update
The Company signed a definitive acquisition agreement with Wuxi Angell Autocycle Co. Ltd. ("Wuxi Angell") on April 28, 2009 and closed the acquisition in early May.
Mr. Zhiguo Fu, Chairman and CEO of Advanced Battery Technologies, commented, "We are excited to announce that we have completed the acquisition of Wuxi Angell. The acquisition of Wuxi Angell provides the Company entry to the growing electric and hybrid-electric bike market. The benefits of our relationship with Wuxi Angell are evident in the introduction of three new hybrid motorcycles, which debuted in February 2009, and by our recently announced contracts for various types of electric vehicles and hybrid-electric vehicles, with an aggregate contract amount of $24 million."
Balance Sheet
As of March 31, 2009, the Company had $33.5 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 March 31, 2009 totaled $51.1 million.
Guidance
On April 2, 2009, ABAT provided financial guidance for the first quarter of 2009, expecting revenue of $10.7 million and net income of $4.65 million. This net income guidance did not take into consideration the parent company's overseas costs or the non-cash stock compensation expense recognized in the first quarter.
ABAT will refrain from providing financial guidance for 2009 as the Company does not believe it can provide meaningful financial guidance with a high degree of accuracy given the Wuxi Angell acquisition, new production capacity coming on line and new product delivery schedules throughout 2009.
Conference Call
Management will host a conference call at 8:30 am ET, on Tuesday, May 12, 2009 to discuss its first quarter 2009 financial results. Listeners may access the call by dialing 1-877-852-6580 or 1-719-325-4762 for international callers. A replay of the call will be available from May 13, 2009 through May 19, 2009. Listeners may access the replay by dialing 1-888-203-1112 or 1-719-457-0820 for international callers; passcode: 6868694.
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.
Wuxi Angell Autocycle Co., Ltd, founded in 2002, develops and manufactures various types of electric vehicles. Angell 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. Angell products are exported to more than 30 countries and regions in Europe, the United States and Asia.
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
March 31,
2009 2008
------------ ------------
Revenues $ 10,685,738 $ 10,031,969
Cost of Goods Sold 5,651,189 4,989,742
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Gross Profit 5,034,549 5,042,227
Operating Expenses
Research & Development expenses -- 4,325
Selling, general and administrative 896,319 567,565
------------ ------------
Operating income 4,138,230 4,470,337
------------ ------------
Other Income (Expenses)
Interest income (expenses) 74,348 --
Equity loss from unconsolidated entity (9,798) --
Other income (expenses) -- 7,586
------------ ------------
Total other income (expenses) 64,550 7,586
------------ ------------
Income Before Income Taxes 4,202,779 4,477,923
Provision for Income Taxes (Benefit) 602,482 629,445
------------ ------------
Net Income $ 3,600,297 $ 3,848,478
Other Comprehensive Income
Foreign currency translation adjustment (97,825) 1,590,979
------------ ------------
Comprehensive Income $ 3,502,472 $ 5,439,457
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Earnings per share
Basic $ 0.08 $ 0.09
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Diluted $ 0.07 $ 0.08
============ ============
Weighted average number of common
shares outstanding
Basic 47,055,374 41,510,498
============ ============
Diluted 54,692,874 49,688,998
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ADVANCED BATTERY TECHNOLOGIES, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
ASSETS
------
March 31, December 31,
2009 2008
(Unaudited)
------------ ------------
Current assets:
Cash and cash equivalents $ 33,545,014 $ 32,746,155
Accounts receivable, net 16,724,986 14,708,078
Inventories, net 1,516,234 1,748,115
Loan receivable 1,619,355 1,600,000
Other receivables 109,163 240,726
Advance to suppliers 129,925 246,163
------------ ------------
Total Current Assets 53,644,677 51,289,237
------------ ------------
Property, plant and equipment, net of
accumulated depreciation of $2,959,062
as of March 31, 2009 and $2,803,788 as
of December 31, 2008 16,481,181 16,635,843
------------ ------------
Total Fixed Assets 16,481,181 16,635,843
------------ ------------
Other assets:
Investment in unconsolidated entity 1,027,751 1,037,550
Investment advance 3,814,946 3,000,000
Deposit for long-term assets 3,712,390 1,748,363
Intangible assets, net 1,514,834 1,548,158
Goodwill 2,482,873 2,487,080
Other assets 26,624 6,000
------------ ------------
Total other assets 12,579,418 9,827,151
------------ ------------
Total Assets $ 82,705,276 $ 77,752,231
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LIABILITIES AND STOCKHOLDERS' EQUITY
------------------------------------
Current liabilities:
Accounts payable $ 913,210 $ 415,850
Advance from Customer 83,185 80,479
Accrued expenses and other payables 498,045 784,070
Loan from officers 8,390 17,236
Tax payable 1,079,760 --
------------ ------------
Total Current Liabilities 2,582,590 1,297,635
Total Liabilities 2,582,590 1,297,635
------------ ------------
Stockholders' Equity
Common stock, $0.001 par value,
60,000,000 shares authorized;
54,821,577 shares issued and
54,626,996 shares outstanding
as of March 31, 2009 and
54,781,577 shares issued and
54,662,067 shares outstanding
as of December 31, 2008 54,822 54,782
Additional paid-in-capital 39,602,197 39,289,991
Accumulated other comprehensive income 5,914,649 6,012,475
Retained earnings 34,993,347 31,393,050
Less: Cost of treasury stock
(194,581 and 119,510 shares as
of March 31, 2009 and
December 31, 2008) (442,329) (295,702)
------------ ------------
Total Stockholders' Equity 80,122,686 76,454,596
------------ ------------
Total Liabilities and Stockholders'
Equity $ 82,705,276 $ 77,752,231
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