NEW YORK, Aug. 9, 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 second quarter ended June 30, 2010.
Second Quarter Financial Highlights
- Revenue increased 65.8% year-over-year to $22.8 million.
- Gross profit increased 74.9% year-over-year to $11.0 million.
- Net income increased 315.0% year-over-year to $12.5 million.
- Earnings per diluted share increased 250.9% year-over-year to $0.18.
- Strong balance sheet with $62.4 million in cash and cash equivalents as of June 30, 2010.
Mr. Zhiguo Fu, CEO of ABAT, stated, "We are pleased with our results during the second quarter. During the quarter, we experienced strong demand in both domestic and international markets for electric and hybrid electric vehicles as individuals and industries switch to alternate forms of transportation. We are still upgrading the capacity of two battery production lines and are aiming to complete the upgrade in the third quarter in order to meet the strong battery demand from customers."
Second Quarter 2010 Financial Results
The Company had total revenues of $22.8 million for the three months ended June 30, 2010, an increase of $9.1 million or 65.8%, compared to $13.8 million for the three months ended June 30, 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 the three months ended June 30, 2010 totaled $12.6 million, compared to $3.6 million in the three months ended June 30, 2009. Large capacity battery cells generated $4.1 million in sales, or 18.0% of total revenue in the second quarter of 2010. Medium capacity battery cells generated $2.7 million in sales, or 11.8% of total revenue in the second quarter of 2010. Small capacity battery cells generated $0.9 million in sales, or 3.8% of total revenue in the second quarter of 2010. Miner's lamp battery cells generated $2.5 million in sales, or 11.1% of total revenue in the second quarter of 2010.
During the three months ended June 30, 2010, gross profit was $11.0 million, an increase of 74.9% year-over year. Gross margin in the second quarter of 2010 was 48.3%, compared to 45.8% a year ago, mainly due to more electric vehicle sales in overseas markets with a higher price premium.
Operating income in the second quarter of 2010 was $9.0 million, an increase of 279.4% year-over-year, from $2.4 million in the prior year's period. Operating expenses decreased to $2.0 million in the second quarter of 2010 from $3.9 million in the second quarter of 2009. The decrease is primarily due to Wuxi ZQ's lower selling and administration expenses of approximately $1.4 million in the three months ended June 30, 2010 compared to approximately $2.4 million, including one-time bad debt allowance associated with the acquisition, in the same period of 2009, In addition, ABAT's U.S. office incurred lower administrative expenses in the second quarter of 2010.
Pre-tax income of $13.3 million in the second quarter of 2010, including a gain of $4.2 million from change in fair value of warrants, represents an increase of $6.2 million from $7.2 million in the same period of 2009. Pre-tax income in the second quarter of 2009, however, included a one-time gain on acquisition purchase of $9.9 million and a loss of $5.0 million from change in fair value of warrants. After taxes of $0.8 million accrued in the three months ended June 30, 2010, the Company's net income increased 315.0% to $12.5 million, or $0.18 per diluted share, from $3.0 million, or $0.05 per diluted share, in the same period of 2009.
At July 31, 2010 we had a backlog of around $63.3 million for delivery throughout the next 12 months, including a battery backlog of approximately $50.5 million.
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.
| ADVANCED BATTERY TECHNOLOGIES, INC. AND SUBSIDIARIES | ||
| CONDENSED CONSOLIDATED BALANCE SHEETS | ||
| ASSETS | ||
| June 30, | December 31, | |
| 2010 | 2009 | |
| (Unaudited) | ||
| Current assets: | ||
| Cash and cash equivalents | $62,416,290 | $52,923,358 |
| Accounts receivable, net | 21,960,884 | 22,406,927 |
| Inventories, net | 6,232,248 | 3,680,098 |
| Loan receivable, net | 1,600,000 | 1,600,000 |
| Other receivables | 293,351 | 107,751 |
| Advance to suppliers, net | 4,854,838 | 7,940,129 |
| Total Current Assets | 97,357,612 | 88,658,263 |
| Property, plant and equipment, net | ||
| Total Fixed Assets | 53,348,554 | 47,248,600 |
| Other assets: | ||
| Investment in unconsolidated entity | 786,933 | 785,057 |
| Investment advance | 1,467,800 | 1,457,034 |
| Deposit for long-term assets | 2,794,323 | 2,860,882 |
| Intangible assets, net | 13,977,262 | 14,317,502 |
| Goodwill | 2,490,578 | 2,472,311 |
| Other assets | 51,236 | 26,705 |
| Total other assets | 21,568,132 | 21,919,491 |
| Total Assets | $172,274,298 | $157,826,354 |
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||
| Current liabilities: | ||
| Short-term loan | $ -- | $2,916,071 |
| Accounts payable | 1,827,693 | 670,254 |
| Advance from Customers | 227,345 | 228,871 |
| Accrued expenses and other payables | 914,149 | 1,389,130 |
| Total Current Liabilities | 2,969,187 | 5,204,326 |
| Long term liabilities: | ||
| Deferred tax liability | 3,468,262 | 3,468,262 |
| Warrant liability | 11,824,055 | 17,221,335 |
| Total Liabilities | 18,261,504 | 25,893,923 |
| Stockholders' Equity | ||
| Preferred stock, $0.001 face value, 5,000,000 shares authorized; | $ -- | $-- |
| 2 shares issued and 2 shares outstanding as of June 30, 2010 and December 31, 2009 | ||
| Common stock, $0.001 par value, 150,000,000 shares authorized; | 68,796 | 68,778 |
| 68,796,720 shares issued and 68,602,139 shares outstanding as of June 30, 2010 | ||
| and 68,778,112 shares issued and 68,583,531 shares outstanding as of December 31, 2009 | ||
| Additional paid-in-capital | 74,928,865 | 74,114,122 |
| Accumulated other comprehensive income | 6,727,123 | 5,496,334 |
| Retained earnings | 72,787,500 | 52,752,687 |
| Less: Cost of treasury stock (194,581 shares as of June 30,2010 and December 31, 2009 ) | (499,490) | (499,490) |
| Total Stockholders' Equity | 154,012,794 | 131,932,431 |
| Total Liabilities and Stockholders' Equity | $172,274,298 | $157,826,354 |
| ADVANCED BATTERY TECHNOLOGIES, INC. AND SUBSIDIARIES | ||||
| CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND OTHER COMPREHENSIVE INCOME | ||||
| (UNAUDITED) | ||||
| For Three-month ended June 30, | For Six Months ended June 30, | |||
| 2010 | 2009 | 2010 | 2009 | |
| (Restated) | (Restated) | |||
| Revenues | $22,835,358 | $13,771,583 | $42,384,375 | $24,457,320 |
| Cost of Goods Sold | 11,796,140 | 7,458,600 | 21,729,456 | 13,109,789 |
| Gross Profit | 11,039,218 | 6,312,983 | 20,654,919 | 11,347,531 |
| Operating Expenses | ||||
| Research & Development expenses | -- | 188,472 | -- | 188,472 |
| Selling, general and administrative | 1,992,830 | 3,740,079 | 4,608,779 | 4,636,398 |
| Operating income | 9,046,388 | 2,384,432 | 16,046,140 | 6,522,661 |
| Other Income (Expenses) | ||||
| Interest income | 80,138 | 96,198 | 187,336 | 170,546 |
| Interest (expense) | (133) | (206,219) | (39,793) | (206,219) |
| Equity gain (loss) from unconsolidated entity | 3,315 | (57,862) | 1,876 | (67,660) |
| Gain on bargain purchase | -- | 9,909,320 | -- | 9,909,320 |
| Change in fair value of warrants | 4,191,406 | (4,976,178) | 5,397,280 | (4,511,492) |
| Other income (expenses) | -- | 13,708 | -- | 13,708 |
| Total other income (expenses) | 4,274,726 | 4,778,967 | 5,546,698 | 5,308,203 |
| Income Before Income Taxes | 13,321,114 | 7,163,399 | 21,592,837 | 11,830,864 |
| Provision for Income Taxes (Benefit) | ||||
| Income tax-Current | 810,875 | 681,211 | 1,558,027 | 1,283,693 |
| Income tax-Deferred | -- | 3,468,262 | -- | 3,468,262 |
| Net income | $12,510,240 | $3,013,926 | $20,034,811 | $7,078,909 |
| Other Comprehensive Income | ||||
| Foreign currency translation adjustment | 811,204 | 68,288 | 1,230,789 | (29,536) |
| Comprehensive Income | $13,321,444 | $3,082,214 | $21,265,601 | $7,049,373 |
| Earnings per share | ||||
| Basic | $0.20 | $0.06 | $0.33 | $0.15 |
| Diluted | $0.18 | $0.05 | $0.29 | $0.13 |
| Weighted average number of common shares outstanding | ||||
| Basic | 61,549,661 | 48,901,584 | 61,544,259 | 47,983,579 |
| Diluted | 68,661,790 | 58,056,619 | 68,656,388 | 56,553,099 |
| ADVANCED BATTERY TECHNOLOGIES, INC. AND SUBSIDIARIES | ||
| CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | ||
| UNAUDITED | ||
| For the Six Months ended June 30, | ||
| 2010 | 2009 | |
| (Restated) | ||
| Cash Flows From Operating Activities: | ||
| Net income | $20,034,811 | $7,078,909 |
| Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||
| Gain on bargain purchase | -- | (9,909,320) |
| Deferred income tax | -- | 3,468,262 |
| Depreciation and amortization | 2,210,253 | 854,137 |
| Amortization of deferred consulting expenses | 58,188 | 79,375 |
| Amortization of stock based compensation expense | 756,573 | 835,519 |
| Equity gain (loss) of unconsolidated entity | (1,876) | 67,660 |
| Provision for doubtful accounts and inventory valuation allowance | 636,260 | 643,436 |
| Gain on disposal of fixed asset | (146) | -- |
| Change in fair value of warrants | (5,397,280) | 4,511,492 |
| Changes in operating assets and liabilities: | ||
| Accounts receivable | 62,213 | (584,589) |
| Inventories | (2,518,300) | (1,621,165) |
| Other receivable & prepayments | 3,291,081 | (692,543) |
| Accounts payable, accrued expenses and other payables | 578,670 | (3,038,975) |
| Advances from Customer | (3,211) | (1,210,714) |
| Net cash provided by (used in) operating activities | 19,707,236 | 481,484 |
| Cash Flows From Investing Activities: | ||
| Deposit for long-term assets | (1,419,217) | (4,596,962) |
| Purchase of property, plant and equipment | (6,102,708) | (101,684) |
| Disposal of property, plant and equipment | 5,127 | -- |
| Cash acquired from business combination | -- | 837,081 |
| Net cash used in investing activities | (7,516,797) | (3,861,565) |
| Cash Flows From Financing Activities | ||
| Repayment of bank loan | (2,929,930) | -- |
| Purchase of treasury stock | -- | (203,788) |
| Proceeds from issuance of preferred stock, net | -- | 16,041,861 |
| Loan receivable | -- | (19,355) |
| Repayment of officer loan | -- | (135,884) |
| Net cash provided by financing activities | (2,929,930) | 15,682,834 |
| Effect of exchange rate changes on cash and cash equivalents | 232,424 | (12,365) |
| Increase in cash and cash equivalents | 9,492,932 | 12,290,388 |
| Cash and Cash Equivalents - Beginning of period | 52,923,358 | 32,746,155 |
| Cash and Cash Equivalents - End of period | $62,416,290 | $45,036,543 |
| SUPPLEMENTAL CASH FLOW INFORMATION: | ||
| During the year cash was paid with the following: | ||
| Interest expense | $47,323 | $152,983 |
| Income taxes | $2,409,719 | $425,111 |
| NON-CASH INVESTING AND FINANCING ACTIVITIES: | ||
| Common stock issued for stock-based compensation | $72,030 | $210,500 |
| Common stock issued for acquisition of Wuxi ZQ | $ -- | $9,870,000 |
| Option issued to executives for service | $ -- | $777,660 |