Six-month income rose to $2.8 million from $701,168 for same period in 2008
RESTON, Va., Aug. 15 /PRNewswire-Asia/ -- Emerald Dairy, Inc. (OTC Bulletin Board: EMDY), a leading producer and distributor of infant and children's formula, milk powder and soybean products in China, today announced record revenues for the second fiscal quarter and first six months ended June 30, 2009.
Net income for the three-month period ended June 30, 3009 rose to $1,263,136, up from $698,350 for the same period in 2008. For the six-month period ended June 30, 2009, net income rose to $2,815,842 from $701,168 for the same period in 2008. The increases were due to increases in gross profit, achieved largely by substantial reductions in cost of goods sold.
Cost of goods sold decreased by $1,641,853, or 22.5%, from $7,281,163 in the three months ended June 30, 2008, to $5,639,310 for the same period in 2009. For the six-month period, cost of goods sold decreased by $1,804,412, or 13.6%, from $13,292,397 in 2008 to $11,487,985 in 2009.
Gross Profit was $4,607,625, or 45.0% of sales, for the three months ended June 30, 2009, as compared to gross profit of $3,623,615, or 33.2% of sales, for the same period in 2008. For the six-month period in 2009, gross profit was $9,615,502, or 45.6% of sales, compared to gross profit of $8,046,840, or 37.7%, for the same period in 2008.
Shu Kaneko, Chief Financial Officer of Emerald Dairy, said: "We are very pleased with the results we achieved in the second quarter of 2009. Sales revenues declined slightly as we shifted to produce more of our higher margin product line and increase our sales prices, but we were able to curb our costs sharply through reductions in the price of raw materials and by reducing subcontracting work. Our reputation for high quality continues to drive product demand even in the face of slower economic growth, and our careful management of resources has supported our healthy bottom line."
Mr. Kaneko added, "The continued strong growth opportunities available to us in our target markets support our plans to triple our production capacity and revenues in the next three years, beginning with the completion of our new processing plant in Hailun City later this year. We are especially pleased with the positive response we are receiving from the investment community to our exciting growth potential."
Financial Highlights for the Second Quarter and Six Months:
-- Net income rose to a record quarter of $1,263,136;
-- Gross profit for the quarter rose by nearly $1 million, to a record
$4,607,625.
-- Net income for the six-month period rose from $701,168 in2008 to
$2,815,842 in 2009.
-- Gross profit for the six months rose nearly $1.6 million to a record
$9,615,502
Rapidly Growing Industry
The dairy market today in China is over $13 billion and is expected to grow at a rate of 15% per year for the foreseeable future. The Chinese government has recognized that the dairy industry is not only crucial to reforming the structure of agriculture in the country and increasing the income of farmers, it is also essential to improving the diet, health, and overall welfare of the Chinese people. In recent years, milk and dairy products have gradually become an accepted daily necessity in the life of Chinese people. As a result, the dairy market is one of the fasted growing markets in China.
About Emerald Dairy Inc.:
Through its wholly-owned operating subsidiaries, Emerald Dairy Inc. is a producer and distributor of infant and children's formula, milk powder and soybean products in the People's Republic of China. The Company's products are sold under two brand names -- "Xing An Ling," designed for low-end customers, and "Yi Bai," designed for middle and high-end customers. They are distributed throughout 20 provinces in mainland China and sold in over 5,800 retail outlets.
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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 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.
Emerald Dairy Inc. and Subsidiaries
Condensed Consolidated Statements of Income
For the Three and Six Months Ended June 30, 2009 and 2008
(Unaudited)
Three months ended Six months ended
June 30, June 30, June 30, June 30,
2009 2008 2009 2008
Sales $10,246,935 $10,904,778 $21,103,487 $21,339,237
Cost of Goods Sold 5,639,310 7,281,163 11,487,985 13,292,397
Gross Profit 4,607,625 3,623,615 9,615,502 8,046,840
Operating Expenses
Selling expenses and
administrative
expenses 3,073,694 2,634,812 6,100,398 6,964,150
Depreciation and
amortization 43,274 15,570 86,512 30,431
Total operating
expenses 3,116,968 2,650,382 6,186,910 6,994,581
Other Income (Expense)
Interest income 2,191 3,978 3,144 9,606
Interest expense 48,352 (42,150) -- (43,406)
Total other income
(expense) 50,543 (38,172) 3,144 (33,800)
Net Income Before
Provision for Income
Tax 1,541,200 935,061 3,431,736 1,018,459
Provision for Income
Taxes
Current 278,064 236,711 615,894 317,291
278,064 236,711 615,894 317,291
Net Income $1,263,136 $698,350 $2,815,842 $701,168
Basic Earnings Per
Share $0.04 $0.02 $0.10 $0.02
Basic Weighted Average
Shares Outstanding 29,658,726 29,299,332 29,537,604 29,299,332
Diluted Earnings Per
Share $0.04 $0.02 $0.09 $0.02
Diluted Weighted
Average Shares
Outstanding 30,105,880 29,563,708 29,648,643 29,563,708
The Components of
Other Comprehensive
Income
Net Income $1,263,136 $698,350 $2,815,842 $701,168
Foreign currency
translation
adjustment 16,406 440,717 (39,420) 1,375,312
Income tax related to
other comprehensive
income (5,578) (149,844) 13,403 (467,606)
Comprehensive Income $1,273,964 $989,223 $2,789,825 $1,608,874
For more information, please contact:
Stanley Wunderlich
Consulting for Strategic Growth 1
Tel: +1-800-625-2236
Fax: +1-646-205-7771
Email: swunderlich@cfsg1.com
