NEW YORK, Nov. 9, 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 third quarter ended on September 30, 2009.
Revenue for the third quarter of 2009 was $17.7 million, a 39.9% increase from $12.7 million in the third quarter of 2008. The increase in revenue was driven by the contribution of sales of electric vehicles by our wholly-owned subsidiary, Wuxi Zhongqiang Autocycle Co., Ltd. ("Wuxi ZQ"), which the Company acquired in the second quarter of 2009. In the third quarter of 2009, sales of electric vehicles from Wuxi ZQ were $6.7 million or 37.9% of total revenue. Large capacity battery cells generated $3.3 million in sales, or 18.5% of total revenue in the third quarter of 2009. Medium capacity battery cells generated $1.6 million in sales, or 8.8% of total revenue in the third quarter of 2009. Small capacity battery cells generated $1.1 million in sales, or 6.1% of total revenue in the third quarter of 2009. Miner's lamps containing ABAT battery cells generated $5.1 million in sales, or 28.6% of total revenue in the third quarter of 2009. Sales from medium capacity battery cells in the third quarter of 2009 exclude intercompany sales of approximately $1.8 million to Wuxi ZQ. Sales to Wuxi ZQ were previously categorized as medium capacity cell battery sales.
Gross profit for the third quarter of 2009 was $7.6 million, a 29.6% increase from $5.9 million in the third quarter of 2008. Gross margin was 43.1% in the third quarter 2009, compared to 46.5% in the third quarter of 2008. Lower gross margin performance was a result of sales of electrical vehicles, a lower margin product. During the same period gross margin from battery sales increased, due to a higher proportion of battery sales from higher margin battery products, primarily large capacity battery cells and miner's lamps.
Operating income for the third quarter of 2009 was $5.2 million, a 3.0% increase from $5.1 million during the third quarter of 2008. Operating expenses increased to $2.4 million in the third quarter of 2009 from $795,336 in the third quarter of 2008. The increase reflects increased selling and administrative expenses at Wuxi ZQ. In addition, ABAT's U.S. office incurred higher administrative expenses such as salaries, legal fees and marketing expenses in the third quarter of 2009. The Company also recognized higher non-cash stock and option compensation amortization expense in the third quarter of 2009.
Net income in the third quarter of 2009 was $4.8 million or $0.08 per diluted share, a 10.2% increase from $4.4 million, or $0.08 per diluted share in the third quarter of 2008. The increase in net income reflected a $336,849 gain from the forgiveness of interest expenses related to a loan associated with our subsidiary Wuxi ZQ. Commenting on the results, Mr. Zhiguo Fu, Chairman and CEO of Advanced Battery Technologies, stated, "We are pleased with our results during the third quarter. Following our acquisition of Wuxi ZQ in May 2009, we are excited to see positive momentum in the electric vehicle business continue in the third quarter, which helped to augment sales by signing new production contracts and expanding the international scope of our operations during the quarter."
"As we continue to integrate the operations of Wuxi ZQ into those of Advanced Battery, we are focused on expanding production capacities and enhancing R&D capabilities in an attempt to realize the synergies of ABAT and assure the Company of a leading position within the battery technology and vehicle production industry. We are confident that our ongoing efforts combined with our proven ability to deliver high-quality products continue to help ABAT tackle sales opportunities in both domestic and international markets being created by the worldwide movement towards more economical and cleaner high performance vehicles."
Balance Sheet
As of September 30, 2009, the Company had $33.8 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 September 30, 2009 totaled $56.9 million.
As of October 30, 2009, the Company had a backlog of over $67 million including a battery backlog of approximately $55 million, all of which is expected to be delivered in the next 12 months.
Conference Call
Management will host a conference call at 8:30 am ET, on Tuesday November 10, 2009 to discuss its third quarter 2009 financial results. Listeners may access the call by dialing #1-877-857-6144 or #1-719-325-4776 for international callers.
A replay of the call will be available from November 10, 2009 through November 17, 2009. Listeners may access the replay by dialing #1-888-203-1112 or #1-719-457-0820 for international callers; passcode: 4176870.
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. Wuxi Zhongqiang Autocycle Co., Ltd, founded in 2002, develops and manufactures various types of electric vehicles. Wuxi Zhongqiang 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. Wuxi Zhongqiang products are exported to countries and regions in Europe, the United States and Asia. 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.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND OTHER
COMPREHENSIVE INCOME
(UNAUDITED)
For Three-month ended For Nine-month ended
September 30, September 30,
2009 2008 2009 2008
Revenues $17,714,278 $12,662,585 $42,171,598 $34,442,838
Cost of Goods Sold 10,087,228 6,776,437 23,197,017 17,542,233
----------- ----------- ----------- -----------
Gross Profit 7,627,050 5,886,148 18,974,580 16,900,605
Operating Expenses
Research &
Development
expenses 118,764 -- 307,236 --
Selling, general
and
administrative 2,264,173 795,336 6,900,571 1,947,200
----------- ----------- ----------- -----------
Operating income 5,244,112 5,090,812 11,766,773 14,953,405
----------- ----------- ----------- -----------
Other Income
(Expenses)
Interest income 76,841 51,925 247,387 68,037
Interest (expense) (120,417) -- (326,636) --
Equity loss from
unconsolidated
entity 5,190 -- (62,470) --
Gain on bargain
purchase -- -- 9,909,320 --
Forgiveness of
debt 336,849 336,849
Other income
(expenses) (160) -- 13,548 --
----------- ----------- ----------- -----------
Total other income
(expenses) 298,302 51,925 10,117,997 68,037
----------- ----------- ----------- -----------
Income Before
Income Taxes 5,542,414 5,142,737 21,884,770 15,021,442
Provision for
Income Taxes
(Benefit)
Income tax-Current 726,337 770,777 2,010,030 2,125,733
Income tax-
Deferred -- -- 3,468,262 --
----------- ----------- ----------- -----------
Net income $ 4,816,077 $ 4,371,960 $16,406,478 $12,895,709
Other Comprehensive
Income
Foreign currency
translation
adjustment (28,402) 539,959 (57,938) 3,174,659
----------- ----------- ----------- -----------
Comprehensive
Income $ 4,787,675 $ 4,911,919 $16,348,539 $16,070,368
=========== =========== =========== ===========
Earnings per share
Basic $ 0.09 $ 0.10 $ 0.33 $ 0.30
=========== =========== =========== ===========
Diluted $ 0.08 $ 0.08 $ 0.28 $ 0.25
=========== =========== =========== ===========
Weighted average
number of common
shares outstanding
Basic 52,970,305 44,349,487 49,676,366 42,456,824
=========== =========== =========== ===========
Diluted 61,342,040 52,527,987 57,974,862 50,635,324
----------- ----------- ----------- -----------
ADVANCED BATTERY TECHNOLOGIES, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
ASSETS
------
September 30, December 31,
2009 2008
(Unaudited)
------------ ------------
Current assets:
Cash and cash equivalents $ 33,839,657 $ 32,746,155
Accounts receivable, net 22,984,388 14,708,078
Inventories, net 6,144,293 1,748,115
Loan receivable,net 1,622,417 1,600,000
Other receivables 1,334,800 240,726
Advance to suppliers,net 4,550,827 246,163
------------ ------------
Total Current Assets 70,476,382 51,289,237
------------ ------------
Property, plant and equipment, net of
accumulated depreciation of $9,856,869 as
of September 30, 2009 and $2,803,788 as of
December 31, 2008 47,161,776 16,635,843
------------ ------------
Total Fixed Assets 47,161,776 16,635,843
------------ ------------
Other assets:
Investment in unconsolidated entity 975,079 1,037,550
Investment advance -- 3,000,000
Deposit for long-term assets 1,399,130 1,748,363
Intangible assets, net 14,546,530 1,548,158
Goodwill 2,487,185 2,487,080
Other assets 47,975 6,000
------------ ------------
Total other assets 19,455,899 9,827,151
------------ ------------
Total Assets $137,094,057 $ 77,752,231
============ ============
LIABILITIES AND STOCKHOLDERS' EQUITY
------------------------------------
Current liabilities:
Short-term loan $ 7,333,674 --
Accounts payable 2,686,256 415,850
Advance from Customers 522,843 80,479
Accrued expenses and other payables 1,793,834 784,070
Loan from officers -- 17,236
Tax payable 1,232,245 --
------------ ------------
Total Current Liabilities 13,568,852 1,297,635
Long term liabilities:
Deferred tax liability 3,468,262 --
Total Liabilities 17,037,114 1,297,635
------------ ------------
Stockholders' Equity
Preferred stock, $0.001 face value,
5,000,000 shares authorized;
500 shares issued and 500 shares
outstanding as of September 30, 2009 and
0 shares issued and outstanding as of
December 31, 2008 $ 1 --
Common stock, $0.001 par value,
150,000,000 shares authorized; 62,311,947
shares issued and 62,117,366 shares
outstanding as of September 30, 2009
and 54,781,577 shares issued and
54,662,067 shares outstanding as of
December 31, 2008 62,312 54,782
Additional paid-in-capital 66,740,056 39,289,991
Accumulated other comprehensive income 5,954,537 6,012,475
Retained earnings 47,799,528 31,393,050
Less: Cost of treasury stock (194,581 and
119,510 shares as of September 30,2009
and December 31, 2008) (499,490) (295,702)
------------ ------------
Total Stockholders' Equity 120,056,943 76,454,596
------------ ------------
Total Liabilities and Stockholders'
Equity $137,094,057 $ 77,752,231
============ ============