XI'AN, China, Aug. 14, 2007 (PRIME NEWSWIRE) -- Hankersen Intl. Corp. (OTCBB:HKRS), a leading cork-building material manufacturer announced results for the second quarter of 2007.
The Company reported an increase in revenue of $0.4 million, or 13%, to $3.6 million for the three months ended June 30, 2007, as compared to the same period last year. For the three months ended June 30, 2007, the Company reported an increase in net income of $0.23 million, or 143% increase to $0.39 million.
For the six months ended June 30, 2007, the Company reported an increase in revenues of $0.54 million, or 11%, to $5.28 million. Net income for the six months ended June 30, 2007 increased $0.18 million, or 61% to $0.49 million.
Mr. Pengcheng Chen, CEO of Hankersen Intl. Corp. commented, "Increased demand on cork wood floor products and introduction of wood material, combined with improved gross margin and reduction in operation expenses helped accelerate growth in revenue and net income over the same period last year."
Mr. Chen continued, "We are pleased with the performance of last quarter, and continue exploring strategies in meeting the demand of our products as well as improving our costs and efficiency in operations and supply chain. Our plans on consolidating the raw material provider will provide us a unique competitive edge. We are excited about the coming quarters and confident in delivering solid results."
On August 14, 2007, the Company filed its Form 10-Q for the fiscal quarter ended June 30, 2007. Please refer to the Management's Discussion and Analysis or Plan of Operation included in the Company's Form 10-Q filed for a more complete discussion of sales, margin and expenses.
About Hankersen Intl. Corp.
Hankersen Intl. Corp. is a leading cork-building material manufacturer based in China. The products are sold under Hanxin brand name to customers in China, India, Japan, Germany and the United States. For more information, visit http://www.hankersen.com/
This news release contains forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995. Forward-looking statements include statements concerning plans, objectives, goals, strategies, future events or performance, and underlying assumptions and other statements that are other than statements of historical facts. These statements are subject to uncertainties and risks including, but not limited to, product and service demand and acceptance, changes in technology, economic conditions, the impact of competition and pricing, government regulation, and other risks contained in reports filed by the Company with the Securities and Exchange Commission. All such forward-looking statements, whether written or oral, and whether made by or on behalf of the company, are expressly qualified by the cautionary statements and any other cautionary statements which may accompany the forward-looking statements. In addition, the company disclaims any obligation to update any forward-looking statements to reflect events or circumstances after the date hereof.
HANKERSEN INTERNATIONAL CORP. AND SUBSIDIARIES
(FORMERLY KUSHI NATURAL FOODS CORP. AND SUBSIDIARIES)
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
FOR THREE MONTHS AND SIX MONTHS ENDED JUNE 30, 2007 AND 2006
For Three Months Ended For Six Months Ended
June 30, June 30,
---------------------- -----------------------
2007 2006 2007 2006
---------- ---------- ---------- ----------
Unaudited Unaudited Unaudited Unaudited
Revenues $3,550,064 $3,148,073 $5,276,391 $4,739,104
Cost of Goods Sold 2,580,974 2,420,281 3,908,256 3,592,185
---------- ---------- ---------- ----------
Gross Profit 969,090 727,792 1,368,135 1,146,919
Operating Expenses
Selling expenses 384,473 358,238 585,314 534,357
General and
administrative
expense 87,284 197,479 202,087 263,196
---------- ----------- ----------- ----------
Total Operating
Expenses 471,757 555,717 787,401 797,553
---------- ---------- ---------- ----------
Income From
Operations 497,333 172,075 580,734 349,366
---------- ---------- ---------- ----------
Other Income (Expense)
Interest (expense)
income, net (16,120) 22,228 22,070 37,167
Other income, net 18,716 15,582 36,468 34,064
---------- ---------- ---------- ----------
Total Other Income 2,596 37,810 58,538 71,231
Income Before Taxes
and Minority
Interest 499,929 209,885 639,272 420,597
Income Tax Provision 75,714 39,102 96,595 70,709
---------- ---------- ---------- ----------
Income Before
Minority Interest 424,215 170,783 542,677 349,888
Minority Interest 35,194 10,930 44,263 39,750
---------- ---------- ---------- ----------
Net Income $ 389,021 $ 159,853 $ 498,414 $ 310,138
========== ========== ========== ==========
Other Comprehensive Income:
Foreign Currency
Translation Gain 164,031 32,062 205,118 106,466
---------- ---------- ---------- ----------
Comprehensive
Income $ 553,052 $ 191,915 $ 703,532 $ 416,604
========== ========== ========== ==========
Net Income Per Common
Share
- Basic $ 0.01 $ 0.03 $ 0.01 $ 0.05
========== ========== ========== ==========
- Diluted: $ 0.01 $ -- $ 0.01 $ 0.01
========== ========== ========== ==========
Weighted Common
Shares Outstanding*
- Basic 35,413,850 5,764,786 35,413,850 5,764,786
========== ========== ========== ==========
- Diluted: 35,413,850 35,295,726 35,413,850 35,295,726
========== ========== ========== ==========
* As restated to reflect recapitalization and the subsequent reverse
stock split.
HANKERSEN INTERNATIONAL CORP. AND SUBSIDIARIES
(FORMERLY KUSHI NATURAL FOODS CORP. AND SUBSIDIARIES)
CONSOLIDATED BALANCE SHEET
June 30, December 31,
2007 2006
----------- -----------
Unaudited Audited
Assets
Current Assets
Cash and equivalents $ 1,407,154 $ 564,733
Accounts receivable, net
of allowance for doubtful
accounts of $9,383 and $9,955,
respectively 1,867,145 1,981,041
Inventories 2,312,432 698,174
Advance to unrelated party -- 1,922,067
Advance to suppliers 1,368,698 1,488,089
Deposit for acquisition 1,116,658 --
Prepayments and other current assets 27,444 40,964
----------- -----------
Total Current Assets 8,099,531 6,695,068
Property and Equipment - Net 2,139,158 2,207,104
Deposit for Purchase of Fixed Assets 1,812,927 1,793,929
Construction in Progress 1,418,812 1,383,888
Investment - At Cost 1,839,201 1,793,929
Land Use Right - Net 156,643 155,018
----------- -----------
Total Assets 15,466,272 14,028,936
=========== ===========
Liabilities and Stockholders' Equity
Current Liabilities
Accounts payable and accrued expenses 639,681 606,746
Loan payable 919,601 896,964
Taxes payable 761,486 284,221
Due to stockholders/officers 159,269 121,684
Other current liabilities 21,311 10,263
----------- -----------
Total Current Liabilities 2,501,348 1,919,878
Minority Interest 1,516,417 1,364,083
Stockholders' Equity
Series A preferred stock,
$0.0001 par value, 5,000,000
shares authorized, 0 shares
issued and outstanding, respectively -- --
Common stock, $0.0001 par value,
200,000,000 shares authorized,
35,413,850 issued and
outstanding, respectively 3,541 3,541
Additional paid-in capital 4,396,772 4,396,772
Reserve funds 1,432,992 1,432,992
Retained earnings 4,774,726 4,276,312
Accumulated other comprehensives income 840,476 635,358
----------- -----------
Total Stockholders' Equity 11,448,507 10,744,975
----------- -----------
Total Liabilities and
Stockholders' Equity $15,466,272 $14,028,936
=========== ===========