NEW YORK, Aug 17, 2011 (GlobeNewswire via COMTEX) -- Advanced Battery Technologies, Inc. ABAT -5.56% , 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:
-- 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.
-- 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. ABAT -5.56% , 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, December 31,
2011 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
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. -- --
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
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 For the Six Months Ended
June 30, 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
Research and development
expenses 298,257 38,980 444,058 86,420
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 --
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
------------- ------------- ------------- -------------
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
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
============= ============= ============= =============
Weighted average number
of
common shares
outstanding
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)
For the Six Months Ended
June 30,
----------------------------
2011 2010
Cash Flows from Operating Activities:
Net income $ 27,241,411 $ 20,034,811
Adjustments to reconcile net income to
net cash provided by (used in)
operating activities:
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
------------- -------------