NEW YORK, Aug. 17, 2011 (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 quarter ended June 30, 2011.
The Company had total revenues of $31,350,652 for the three months ended June 30, 2011, an increase of $8,515,294 or 37.3%, compared to $22,835,358 for the three months ended June 30, 2010. For the six months ended June 30, 2011, total revenues of $59,992,387 represented an increase of $17,608,012 or 41.5%, compared to $42,384,375 for the six months ended June 30 2010. The increase in revenues was primarily due to the contribution of revenues from:
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Wuxi ZQ. Wuxi ZQ revenues of $13,209,066 for the three months and $25,943,022 for the six months ended June 30, 2011 represented increases of $565,895 and $4,239,398 compared to revenues during the three and six months ended June 30, 2010.
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Shenzhen-based Operations. We acquired the assets of Shenzhen ZQ in January, 2011. The three and six month revenue for the periods ended June 30, 2011 attributable to our new Shenzhen operations was $5,253,910 and $9,602,091, respectively.
- Harbin-based Operations. Revenues of $12,896,872 and $24,447,274 from our Harbin- based battery operations for the three and six months ended June 30, 2011 represented increases of 26.4% and 18.2% respectively compared to the comparable periods ended June 30, 2010.
At June 30, 2011 the Company had a backlog of $61,230,000 for delivery through the next 6 months, including a battery backlog of approximately $33,030,000.
The Company's gross margin declined from 48% in the three months ended June 30, 2010 to 43% in the same period of 2011, and from 49% in the first half of 2010 to 42% in the first half of 2011. The decline occurred primarily because the $9,602,091 in sales of small capacity batteries generated from the new Shenzhen facility yielded a low margin relative to other revenue.
The Company's operating expenses increased by 21%, from $1,992,831 in the three months ended June 30, 2010 to $2,374,648 in the three months ended June 30, 2011. The primary reason for the increase was the fact that operating expenses of the Shenzhen operation that the Company acquired in January 2011 were included in our 2011 results. In addition, research and development expenses increased by $259,277 from the second quarter of 2010 to the second quarter of 2011. These increases were partially offset by a bad debt expense of $160,000 incurred in the second quarter of 2010 that was not replicated in 2011.
Operating income for the three months ended June 30, 2011 totaled $11,044,407, an increase of 22% from operating income in the three months ended June 30, 2010. Operating income for the six months ended June 30, 2011 totaled $20,847,534, an increase of 30% from operating income in the six months ended June 30, 2010.
Zhiguo Fu, Chairman and CEO of Advanced Battery Technologies, said: "We are heartened by the continual growth of our operating income, which demonstrates the success of our expansion efforts. Although the growth of operating income lagged the growth of revenue, due to low margins on our small capacity batteries, our current expectation, is that, in time, the advanced technology and facilities that we acquired from Shenzhen ZQ, along with our established customer list, will allow us to achieve worthwhile margins in the small capacity battery sector. For that reason we expect that the focus of operations at the Dongguan industrial park that we currently have under construction will be in large part on small capacity batteries. This, coupled with our steady growth in the large capacity battery sector, should give us a solid platform from which to build a strong position in the international battery market."
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 vehicles, 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 manufacturer, 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. | ||
| CONDENSED CONSOLIDATED BALANCE SHEETS | ||
|
June 30, 2011 |
December 31, 2010 |
|
| (Unaudited) | ||
| ASSETS | ||
| Current Assets: | ||
| Cash | $ 74,044,694 | $ 111,128,070 |
|
Accounts receivable, net of allowance for doubtful accounts of $68,938 and $67,392 as of June 30, 2011 and December 31, 2010, respectively |
19,509,545 | 16,084,366 |
|
Inventories, net of allowance for obsolescence of nil as of June 30, 2011 and December 31, 2010 |
8,076,814 | 5,224,553 |
| Loan receivable and other receivables | 1,991,156 | 1,872,888 |
| Advance to suppliers, net | 7,555,536 | 4,015,313 |
| Deferred tax asset | 457,568 | 447,305 |
| Total Current Assets | 111,635,313 | 138,772,495 |
| Property, plant and equipment, net | 107,508,191 | 57,452,244 |
| Other assets: | ||
| Investment - equity in affiliate | 763,973 | 776,860 |
| Deposit for investment | -- | 11,721,468 |
| Deposit for property, plant and equipment | 10,040,744 | 2,307,350 |
| Intangible assets, net - other | 13,819,788 | 13,957,505 |
| Goodwill | 5,805,499 | 2,566,337 |
| Other assets | 85,961 | 44,211 |
| Total other assets | 30,515,965 | 31,373,731 |
| TOTAL ASSETS | $ 249,659,469 | $ 227,598,470 |
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||
| Current Liabilities: | ||
| Accounts payable | $ 3,175,085 | $ 1,282,410 |
|
Accrued expenses, other payables and advances from customers |
1,934,301 | 451,294 |
| Income tax payable | 3,027,817 | 5,887,027 |
| Total Current Liabilities | 8,137,203 | 7,620,731 |
| Long term liabilities: | ||
| Deferred tax liability | 3,025,847 | 3,025,847 |
| Warrant liability | 540,419 | 11,749,803 |
| Total Liabilities | 11,703,469 | 22,396,381 |
| Commitments and contingencies | ||
| Stockholders' Equity | ||
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Preferred stock, $0.001 face value; 5,000,000 shares authorized; 2 shares issued and 2 shares outstanding as of June 30, 2011 and December 31, 2010. Liquidation preference of $2,000 as of June 30, 2011 and December 31, 2010. |
-- | -- |
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Common stock, $0.001 par value; 150,000,000 shares authorized; 76,635,015 and 76,619,220 shares issued as of June 30, 2011 and December 31, 2010, respectively. 76,440,434 and 76,424,639 shares outstanding as of June 30, 2011 and December 31, 2010, respectively. |
76,635 | 76,619 |
| Additional paid-in capital – stock and stock equivalents | 101,089,033 | 100,198,536 |
| Accumulated other comprehensive income | 16,036,180 | 11,414,192 |
| Statutory reserve | 5,558,455 | 4,855,774 |
| Retained earnings | 115,695,187 | 89,156,458 |
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Less: Cost of treasury stock (194,581 shares as of June 30, 2011 and December 31, 2010) |
(499,490) | (499,490) |
| Total Stockholders' Equity | 237,956,000 | 205,202,089 |
| TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ 249,659,469 | $ 227,598,470 |
| ADVANCED BATTERY TECHNOLOGIES, INC. | ||||
| CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND | ||||
| COMPREHENSIVE INCOME | ||||
| (UNAUDITED) | ||||
| For the Three Months Ended June 30, | For the Six Months Ended June 30, | |||
| 2011 | 2010 | 2011 | 2010 | |
| Revenue | $ 31,350,652 | $ 22,835,358 | $ 59,992,387 | $ 42,384,375 |
| Cost of Goods Sold | 17,931,598 | 11,796,140 | 34,739,768 | 21,729,456 |
| Gross Profit | 13,419,054 | 11,039,218 | 25,252,619 | 20,654,919 |
| Operating Expenses | ||||
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Research and development expenses |
298,257 | 38,980 | 444,058 | 86,420 |
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Selling, general and administrative expenses |
2,076,392 | 1,953,851 | 3,961,029 | 4,522,360 |
| Operating income | 11,044,407 | 9,046,387 | 20,847,534 | 16,046,139 |
| Other Income (Expenses) | ||||
| Interest income | 112,173 | 80,138 | 219,392 | 187,336 |
| Interest (expense) | -- | (133) | -- | (39,793) |
| Other income | 24,823 | -- | 20,378 | -- |
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Foreign currency transaction (loss) |
(90,677) | -- | (90,677) | -- |
| Change in fair value of warrants | 2,189,565 | 4,191,406 | 11,209,384 | 5,397,280 |
| Total other income | 2,235,884 | 4,271,411 | 11,358,477 | 5,544,823 |
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Equity gain (loss) from unconsolidated entity |
(923) | 3,315 | (12,887) | 1,876 |
| Income before Income Taxes | 13,279,368 | 13,321,113 | 32,193,124 | 21,592,838 |
| Provision for Income Taxes | ||||
| Income tax expense | 3,007,163 | 810,875 | 4,951,713 | 1,558,027 |
| Net Income | $ 10,272,205 | $ 12,510,238 | $ 27,241,411 | $ 20,034,811 |
| Other Comprehensive Income | ||||
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Foreign currency translation adjustment |
3,452,741 | 811,204 | 4,621,987 | 1,230,789 |
| Comprehensive Income | $ 13,724,946 | $ 13,321,442 | $ 31,863,398 | $ 21,265,600 |
| Earnings per share | ||||
| Basic | $ 0.13 | $ 0.20 | $ 0.36 | $ 0.33 |
| Diluted | $ 0.12 | $ 0.18 | $ 0.33 | $ 0.29 |
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Weighted average number of common shares outstanding |
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| Basic | 76,444,372 | 61,549,661 | 76,430,526 | 61,544,259 |
| Diluted | 82,613,233 | 68,661,790 | 82,599,387 | 68,656,388 |
| ADVANCED BATTERY TECHNOLOGIES, INC. | ||
| CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | ||
| (UNAUDITED) | ||
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For the Six Months Ended June 30, |
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| 2011 | 2010 | |
| Cash Flows from Operating Activities: | ||
| Net income | $ 27,241,411 | $ 20,034,811 |
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Adjustments to reconcile net income to net cash provided by (used in) operating activities: |
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| Depreciation and amortization | 2,386,938 | 2,210,253 |
| Amortization of deferred consulting expenses | 58,188 | 58,188 |
| Amortization of stock-based compensation expense | 832,324 | 756,573 |
| Equity loss (gain) of unconsolidated entity | 12,887 | (1,876) |
| Provision for doubtful accounts and inventory valuation allowance | -- | 636,260 |
| Gain on disposal of fixed asset | -- | (146) |
| Change in fair value of warrants | (11,209,384) | (5,397,280) |
| Changes in operating assets and liabilities: | ||
| Accounts receivable, net | 354,235 | 62,213 |
| Inventories, net | (828,187) | (2,518,300) |
| Other receivables and other assets | (157,958) | 3,291,081 |
| Advance to suppliers | (3,316,058) | -- |
| Accounts payable | (417,748) | 1,150,261 |
| Accrued expenses, other payables and advances from customers | 827,939 | (734,579) |
| Income tax payable | (2,922,645) | 159,777 |
| Net Cash Provided By Operating Activities | 12,861,942 | 19,707,236 |
| Cash Flows from Investing Activities: | ||
| Deposit for property, plant and equipment | (7,590,730) | (1,419,217) |
| Purchase of property, plant and equipment | (40,436,963) | (6,102,708) |
| Proceeds from disposal of property, plant and equipment | -- | 5,127 |
| Cash acquired from business combination | 52,831 | -- |
| Acquisition of subsidiary | (3,631,554) | -- |
| Acquisition of intangible assets | (48,605) | -- |
| Net Cash (Used in) Investing Activities | (51,655,020) | (7,516,798) |
| Cash Flows from Financing Activities: | ||
| Repayment of bank loan | -- | (2,929,930) |
| Net Cash Provided By (Used In) Financing Activities | -- | (2,929,930) |
| Effect of Exchange Rate Changes on Cash | 1,709,702 | 232,424 |
| Increase in cash | (37,083,376) | 9,492,932 |
| Cash - Beginning of period | 111,128,070 | 52,923,358 |
| Cash - End of period | $ 74,044,694 | $ 62,416,290 |
| SUPPLEMENTAL CASH FLOW INFORMATION: | ||
| During the year, cash was paid for the following: | ||
| Interest expense | -- | $ 47,324 |
| Income taxes | $ 7,442,745 | $ 2,409,719 |