NEW YORK and HARBIN, China, March 16, 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 year ended December 31, 2008.
Financial Highlights for the Full Year 2008:
* Revenue increased 41.6% year over year to $45.2 million * Gross profit increased 59.1% year over year to $22.0 million * Income from operations increased 84.3% year over year to $18.8 million * Net income increased 57.7% year over year to $16.1 million
Mr. Zhiguo Fu, Chairman and CEO of Advanced Battery Technologies, stated, "We are encouraged by the strong performance our company produced in 2008. We were able to grow revenue in excess of 40% while cutting overhead costs and controlling the cost to manufacture our products. The market for our large and medium capacity battery cells continues to expand, particularly for usage in electric sanitation vehicles, electric scooters, electric bicycles, power tools, miners' lamps, searchlights and other applications.
"In December of 2008, we announced our intent to acquire 55% of Wuxi Angell, a manufacturer of electric vehicles, including electric bikes, agricultural transport vehicles and electric sports utility vehicles. The benefits of our relationship with Wuxi Angell have already been seen as evidenced by the introduction of our three new hybrid motorcycles, which debuted in February of 2009.
"Even in this difficult economic environment, Advanced Battery will continue to strive to develop leading clean technology battery products, improve manufacturing efficiencies, and to increase margins as demand for our products continues to grow."
Revenue for 2008 was $45.2 million, an increase of $13.3 million, or 41.6% from $31.9 million for 2007. The increase in revenue was driven by increased sales volume, driven by new customer growth and increased sales of batteries for motorized vehicles. For 2008, large capacity battery cells generated $13.5 million in sales or 29.8% of total revenue. Medium capacity battery cells generated $16.2 million in sales or 35.9% of total revenue in 2008. Small capacity battery cells generated $4.7 million in sales or 10.5% of total revenue in 2008. Revenue from other products (i.e. miners' lamps) generated $10.8 million in sales or 23.8% of total revenue.
For 2008, gross profit increased approximately 59.1% to $22.0 million from $13.9 million in 2007. Gross margin was 48.8% in 2008, compared with 43.4% in the prior year. Gross margin performance reflects the efforts of the Company's production staff to achieve more efficient use of raw materials, and from the Company's ongoing program of improving the efficiency of production techniques.
For 2008, operating income increased approximately 84.3% to $18.8 million from $10.2 million during 2007. Operating expenses decreased 11% to $3.3 million from $3.7 million in the prior year. The decrease reflected a one-time compensation charge that was recorded in 2007 plus a decrease in R&D costs as the Company focused on expanding the Company's production facility.
Net income in 2008 increased 57.7%, to $16.1 million, or $0.31 per fully diluted share, compared to $10.2 million or $0.21 per fully diluted share in 2007.
Balance Sheet
As of December 31, 2008, the Company had $32.7 million of cash and cash equivalents, compared to $2.7 million of cash and cash equivalents at December 31, 2007.
Backlog is approximately $63.6 million as of March 12, 2009. $55.9 million of these firm orders are due for delivery during the current fiscal year.
Outlook
The Company believes that the global recession will make it difficult to equal the revenue growth rate of 2008, but that the Company will continue to grow through new customers and strategic alliances.
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.
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 STATEMENTS OF INCOME AND OTHER COMPREHENSIVE INCOME
YEAR ENDED DECEMBER 31,
-------------------------------------
2008 2007 2006
(Restated) (Restated)
----------- ------------------------
Revenues $45,172,111 $31,897,618 $16,329,340
Cost of Goods Sold 23,122,610 18,039,861 7,344,642
----------- ------------------------
Gross Profit 22,049,501 13,857,757 8,984,698
Operating Expenses
Research & Development
expenses 4,463 383,871 181,257
Selling, general and
administrative 3,263,409 3,283,230 1,423,621
----------- ----------- -----------
Operating income 18,781,629 10,190,656 7,379,820
----------- ----------- -----------
Other Income (Expenses)
Interest income (expenses) 124,487 14,750 (237,148)
Equity in loss from
unconsolidated entity (90,707) -- --
Other income (expenses) 3,118 -- (9,282)
----------- ----------- -----------
Total other income (expenses) 36,898 14,750 (246,430)
----------- ----------- -----------
Income Before Income Taxes 18,818,527 10,205,406 7,133,390
Provision for Income Taxes
(Benefit) 2,722,407 -- (907,362)
----------- ----------- -----------
Net Income $16,096,120 $10,205,406 $ 8,040,752
Other Comprehensive Income
Foreign currency translation
adjustment 2,912,481 2,125,410 844,251
----------- ----------- -----------
Comprehensive Income $19,008,602 $12,330,816 $ 8,885,003
=========== =========== ===========
Earnings per share
Basic $ 0.37 $ 0.25 $ 0.21
=========== =========== ===========
Diluted $ 0.31 $ 0.21 $ 0.17
=========== =========== ===========
Weighted average number of
common shares outstanding
Basic 43,493,492 40,924,452 37,474,371
=========== =========== ===========
Diluted 51,671,992 49,677,285 46,569,371
=========== =========== ===========
ADVANCED BATTERY TECHNOLOGIES, INC.
CONSOLIDATED BALANCE SHEETS
ASSETS
------
December 31,
------------------------
2008 2007
----------- -----------
Current assets:
Cash and cash equivalents $32,746,155 $ 2,704,823
Accounts receivable, net 14,708,078 16,026,604
Inventories, net 1,748,115 1,159,474
Loan receivable 1,600,000 --
Other receivables 240,726 84,950
Advance to suppliers 246,163 1,608,967
----------- -----------
Total Current Assets 51,289,237 21,584,818
----------- -----------
Property, plant and equipment, net of
accumulated depreciation of $2,808,788, as
of December 31, 2008 and $2,016,275 as of
December 31, 2007 16,635,843 13,243,236
----------- -----------
Total Fixed Assets 16,635,843 13,243,236
----------- -----------
Other assets:
Investment in unconsolidated entity 1,037,550 --
Investment advance 3,000,000 --
Security deposit 6,000 6,000
Deposit for long-term assets 1,748,363 --
Intangible assets, net 1,548,158 1,563,037
Goodwill 2,487,080 2,326,119
----------- -----------
Total other assets 9,827,151 3,895,156
----------- -----------
Total Assets $77,752,231 $38,723,210
=========== ===========
LIABILITIES AND STOCKHOLDERS' EQUITY
------------------------------------
Current liabilities:
Accounts payable $ 415,850 $ 406,454
Customer deposits 80,479 75,116
Accrued expenses and other payables 784,070 618,173
Loan from officers 17,236 735,700
----------- -----------
Total Current Liabilities 1,297,635 1,835,444
Long-term liabilities:
Note payable -- 411,263
------------------------
Total Liabilities 1,297,635 2,246,707
----------- -----------
Commitments and Contingencies
Stockholders' Equity
Common stock, $0.001 par value, 60,000,000
shares authorized; 54,781,577 shares issued
and 54,662,067 shares outstanding as of
December 31, 2008 and 49,688,998 shares
issued and outstanding as of December 31,
2007 54,782 49,689
Additional paid-in-capital 39,289,991 18,029,891
Accumulated other comprehensive income 6,012,475 3,099,994
Retained earnings 31,393,050 15,296,930
Less: Cost of treasury stock (119,510
shares) (295,702) --
----------- -----------
Total Stockholders' Equity 76,454,596 36,476,504
----------- -----------
Total Liabilities and Stockholders'
Equity $77,752,231 $38,723,210
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