New ETF Book by Larry Connors - Click here to read more
Second Quarter 2009 Revenue Highlights
Revenue in the second quarter of 2009 increased to $32.5 million from $29.6 million in the second quarter of 2008, reflecting increased demand for the Company's distributed and licensed products, offset by a significant slow down of commercial activities related to uncertainty stemming from healthcare reform in China. Revenue from Sunstone (Tangshan) Pharmaceutical Co., Ltd., or Sunstone, generated $16.8 million of revenue, compared to $19.6 million in the prior year period. Sunstone's year over year revenue performance primarily reflects destocking in the distribution channels resulting from the uncertainty created by the ongoing healthcare reform in China. Distributors reduced inventory on hand in order to protect against potential price reductions, if any, of the products that may be listed on China's Essential Drug List (EDL) as part of China's heath care reform policy. Revenue from distribution increased 63.1% to $14.1 million in the second quarter of 2009 from $8.7 million in the prior year period, reflecting revenue from Shanghai Rongheng Pharmaceutical, Ltd., which was acquired in July 2008, and sales growth of Wanwei Pharmaceutical Co., Ltd.'s, or Wanwei. Revenue from licensed products increased 13.3% to $1.6 million from $1.4 million in the prior year period, reflecting sales and marketing efforts of Anpo, Propess and Ferriprox compared to the prior year.
First Half 2009 Financial Results
For the six months ended June 30, 2009, revenue increased 50.3% to $71.7 million from $47.7 million in the first six months of 2008. During this same time period, gross profit increased 44.4% to $35.1 million from $24.3 million. Income from operations increased to $3.3 million, compared to $208,000 in the first six months of 2008. Non-GAAP net income was $3.3 million, or $0.07 per diluted share, compared to $1.2 million, or $0.03 per diluted share, in the prior year period. On a GAAP basis, the Company reported a net loss of $3.7 million, or ($0.09) per share, compared to $4.1 million, or ($0.11) per share, in the first six months of 2008. The EPS calculation is based on 46.9 million diluted shares outstanding, compared to 38.7 million diluted shares outstanding in the prior year period.
David Gao, Chief Executive Officer of BMP Sunstone, stated, "Lower than expected Sunstone revenue offset strength in other areas of the business and our second quarter results reflect this. While Sunstone demonstrated strong growth in the first quarter of the year, destocking by almost 50% in over-the-counter distribution channels undermined performance of Sunstone in the second quarter. Destocking was due to the fact that the Chinese government has not yet released the details of its Healthcare Reform policy. Our RX and distribution businesses have been performing as planned, however, those businesses were not able to offset Sunstone's shortfall."
Second Quarter 2009 Operational Highlights
Gross profit in the second quarter of 2009 decreased to $14.4 million from $16.6 million in the second quarter of 2008. Gross margin was 44.3%, compared to 55.9% in the prior year period. Gross margin performance reflects Sunstone's lower revenue contribution this quarter versus the prior year period.
Operating income was $93,000 in the second quarter of 2009, compared to $1.6 million in the second quarter of 2008, reflecting continued cost control and cost synergies. General and administrative expenses as a percentage of revenue was approximately 12.3%, down from 12.9% in the prior year period.
Non-GAAP net income was $300,000, or $0.01 per diluted share, compared to $1.3 million, or $0.03 per diluted share, in the second quarter of 2008. On a GAAP basis, the Company reported a net loss of $1.7 million in the second quarter of 2009, or ($0.04) per share, compared to a net loss of $1.3 million, or ($0.03) per share, in the prior year period. The earnings per share calculation is based on 50.7 million diluted shares outstanding, compared to 40.9 million diluted shares outstanding in the prior year period.
Non-GAAP net income and earnings per share exclude stock based compensation expense, amortization related to the Sunstone and Wanwei acquisitions, amortization of debt discount and issuance cost, loss on early extinguishment of debt and gain on the embedded derivative value on convertible notes. Adjusted EBITDA is a non-GAAP measure which provides earnings before interest, taxes, depreciation and amortization and excludes loss on early extinguishment of debt and gain on the embedded derivative value on convertible notes. Please refer to the financial tables provided in this news release for a reconciliation of GAAP results to non-GAAP results for the three-month periods ended June 30, 2009 and June 30, 2008.
Balance Sheet
On June 30, 2009, the Company's cash position was $8.9 million and we had notes receivable of $12.9 million, totaling approximately $21.8 million. All notes receivables are guaranteed by established banks in China and have maturities of six months or less. During the second quarter of 2009, the Company reduced its outstanding indebtedness from $43.6 million at March 31, 2009 to $31.5 million as of June 30, 2009. In addition, effective August 3, 2009, the Company further enhanced its balance sheet with the divestment of its 20% ownership of Alliance BMP, a joint venture, for $15.1 million.
Financial Guidance
BMP Sunstone is reiterating its revenue, EBITDA and non-GAAP net income guidance for 2009. As previously announced, for the fiscal year 2009, revenue is anticipated to increase at least 35% year over year to reach $150 million to $160 million. EBITDA is expected to reach $16 million to $18 million, and non-GAAP net income is expected to reach $9 million to $11 million.
Gao continued, "Sequentially and on a year over year basis, Sunstone generated lower revenue in the second quarter of 2009. We believe that the recent decline in purchases from distributors will reverse as soon as the pending Chinese healthcare policies are finalized and disclosed. Our 2009 financial guidance reflects sales and marketing expansion in China resulting from continued performance at all of our business units, especially at Sunstone, and reflects operational synergies resulting from acquisitions we completed over the past eighteen months. In 2009, we expect all of our business units to be profitable, which will mark a significant milestone in the Company's development."
Conference Call
The Company will hold a conference call at 5:00 pm ET on August 10, 2009 to discuss second quarter 2009 results. Listeners may access the call by dialing 1-888-679-8018 or 1-617-213-4845 for international callers, access code: 61955491. Preregistration and a webcast will also be available through the Company's website at http://www.bmpsunstone.com . A replay of the call will be available through August 16, 2009. Listeners may access the replay by dialing 1-888-286-8010 or 1-617-801-6888 for international callers, access code: 70723501.
About BMP Sunstone Corporation
BMP Sunstone Corporation is a specialty pharmaceutical company that is building a proprietary portfolio of branded pharmaceutical and healthcare products in China. Currently this portfolio includes eight products under exclusive multi-year licenses for China, primarily focused on women's health and pediatrics. The Company also owns Sunstone Pharmaceutical Co. Ltd., which manufactures leading pediatric and women's health products, including two of China's most recognized brands, "Hao Wawa" and "Confort," sold through approximately 120,000 pharmacies in China. The Company also provides pharmaceutical distribution services through its subsidiaries in Beijing and Shanghai, and through its affiliate, Guangzhou Pharmaceuticals Corp. The Company has its main office in Beijing, with a US office in Plymouth Meeting, PA. For more information, please visit http://www.bmpsunstone.com.
Safe Harbor Statement
This news release contains forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995. Forward-looking statements include statements concerning plans, objectives, goals, strategies, future events or performance, and underlying assumptions and other statements that are other than statements of historical facts, including but not limited to statements regarding the impact of changes in China's healthcare industry on the Company's growth and financial performance, the Company's expected financial performance in 2009 and the Company's expectations for each of its business units in 2009. These statements are subject to uncertainties and risks including, but not limited to, operating performance, the timing of China's healthcare reform policy, general financial, economic, and political conditions affecting the biotechnology and pharmaceutical industries and the Chinese pharmaceutical market, the ability to timely manufacture and distribute the Company's products and other risks contained in reports filed by the Company with the Securities and Exchange Commission. In addition, the Company disclaims any obligation to update any forward-looking statements to reflect events or circumstances after the date hereof.
BMP Sunstone Corporation and Subsidiaries
Condensed Consolidated Statements of Operation
($ amounts, except per share amounts in thousands)
For the Three months For the Six months
ended June 30, ended June 30,
2009 2008 2009 2008
Revenues:
Third parties $32,123 $27,137 $67,644 $44,435
Related parties 360 2,501 4,102 3,292
Total Revenues 32,483 29,638 71,746 47,727
Cost of Goods Sold 18,089 13,077 36,694 23,445
Gross Profit 14,394 16,561 35,052 24,282
Sales and Marketing Expenses 10,300 11,138 23,811 17,099
General and Administration Expenses 4,001 3,819 7,930 6,975
Total Operating Expenses 14,301 14,957 31,741 24,074
Profit From Operations 93 1,604 3,311 208
Other Income (Expense):
Interest Income 84 14 108 62
Interest Expense (1,058) (1,611) (2,475) (3,180)
Debt Issuance Cost Amortization (97) (210) (225) (420)
Equity Method Investment Income 65 -- 82 675
Loss on Early Extinguishment of Debt -- -- (4,573) --
Gain(Loss) on Derivatives (447) -- 1,204 --
Total Other Income (Expense) (1,453) (1,807) (5,879) (2,863)
Loss Before Provision For Income Taxes (1,360) (203) (2,568) (2,655)
Provision For Income Taxes 372 1,064 1,154 1,411
Net Loss $(1,732) $(1,267) $(3,722) $(4,066)
Less: Net Loss Attributable to the
Noncontrolling Interest 16 -- 16 --
Net Loss Attributable to BMP Sunstone
Corporation $(1,716) $(1,267) $(3,706) $(4,066)
Basic and Fully-Diluted Loss Per Share $(0.04) $(0.03) $(0.09) $(0.11)
Basic Weighted-average Shares
Outstanding 41,539 39,511 41,154 37,304
Fully Diluted Weighted-average Shares
Outstanding 50,699 40,850 46,875 38,719
BMP Sunstone Corporation and Subsidiaries
Condensed Consolidated Statements of Operation
($ amounts, except per share amounts in thousands)
Non GAAP
For the Three months For the Six months
ended June30, ended June 30,
2009 2008 2009 2008
Revenues:
Third parties $32,123 $27,137 $67,644 $44,435
Related parties 360 2,501 4,102 3,292
Total Revenues 32,483 29,638 71,746 47,727
Cost of Goods Sold 17,974 12,970 36,464 22,669
Gross Profit 14,509 16,668 35,282 25,058
Sales and Marketing Expenses 9,547 10,253 22,332 15,797
General and Administration Expenses 3,359 3,203 6,684 5,729
Total Operating Expenses 12,906 13,456 29,016 21,526
Profit From Operations 1,603 3,212 6,266 3,532
Other Income (Expense):
Interest Income 46 14 70 62
Interest Expense (1,058) (844) (2,025) (1,646)
Debt Issuance Cost Amortization -- -- -- --
Equity Method Investment Income 65 -- 82 675
Loss on Early Extinguishment of Debt -- -- -- --
Gain on Derivatives -- -- -- --
Total Other Income (Expense) (947) (830) (1,873) (909)
Profit Before Provision For Income
Taxes 656 2,382 4,393 2,623
Provision For Income Taxes 372 1,064 1,154 1,411
Net Profit $284 $1,318 $3,239 $1,212
Less: Net Loss Attributable to the
Noncontrolling Interest 16 -- 16 --
Net Profit Attributable to BMP
Sunstone Corporation 300 1,318 3,255 1,212
Basic Profit Per Share $0.01 $0.03 $0.08 $0.03
Fully Diluted Profit Per Share $0.01 $0.03 $0.07 $0.03
Basic Weighted-average Shares
Outstanding 41,539 39,511 41,154 37,304
Fully Diluted Weighted-average Shares
Outstanding 50,699 40,850 46,875 38,719
BMP Sunstone Corporation and Subsidiaries
Condensed Consolidated Balance Sheets
($ amounts in thousands)
June 30, December 31,
2009 2008
Assets
Current Assets:
Cash and Cash Equivalents $8,901 $15,740
Restricted Cash 1,563 1,150
Notes Receivable 12,905 15,797
Accounts Receivable, net of allowance
for doubtful accounts of $116 and
$127 37,770 30,897
Inventory, net of allowance for
obsolescence of $45 and $0 9,498 10,184
Due from Related Party 1,259 1,834
Other Receivables 2,091 2,168
VAT Receivable 1,141 921
Prepaid Expenses and Other Current
Assets 6,683 6,247
Total Current Assets 81,811 84,938
Property and Equipment, net 23,512 22,840
Investment in Alliance BMP Limited 15,093 15,093
Investment in Shengda 3,003 --
Investments, at Cost 146 146
Goodwill 69,958 69,866
Other Assets 619 875
Land Use Rights, net of accumulated
amortization 2,869 2,002
Intangible Assets, net of accumulated
amortization 40,207 41,891
Total Assets $237,218 $237,651
Liabilities and Equity
Current Liabilities:
Notes Payable and Bank Borrowings,
net of debt discounts $1,841 $33,591
Accounts Payable 26,873 27,482
Due to Related Parties 2,658 4,361
Deferred Revenues 128 128
Accrued Expenses 15,201 14,601
Total Current Liabilities 46,701 80,163
Long-Term Debt, including debt
premium 29,641 --
Deferred Taxes 9,646 9,856
Total Liabilities 85,988 90,019
Equity:
Common Stock, $.001 Par Value;
75,000,000 Shares Authorized as of
June 30, 2009 and December 31, 2008;
41,558,905 and 40,246,410 Shares
Issued and Outstanding as of June
30, 2009 and December 31, 2008,
respectively 42 40
Additional Paid in Capital 167,578 160,864
Common Stock Warrants 8,621 9,049
Accumulated Deficit (34,748) (31,042)
Accumulated Other Comprehensive
Income 9,314 8,721
Total Equity 150,807 147,632
Noncontrolling Interest 423 --
Total Liabilities and Equity $237,218 $237,651
BMP Sunstone Corporation and Subsidiaries
Non GAAP Reconciliations
($ amounts, except per share in thousands)
Three Months Ended Six Months Ended
June 30, June 30,
2009 2008 2009 2008
GAAP Gross Profit $14,394 16,561 $35,052 $24,282
Amortization Related to Acquisitions 115 107 230 776
Non GAAP Gross Profit $14,509 $16,668 $35,282 $25,058
Three Months Ended Six Months Ended
June 30, June 30,
2009 2008 2009 2008
GAAP Operating Income $93 $1,604 $3,311 $208
Stock Based Compensation 599 616 1,184 1,179
Amortization Related to Acquisitions 911 992 1,771 2,145
Non GAAP Operating Income $1,603 $3,212 $6,266 $3,532
Three Months Ended Six Months Ended
June 30, June 30,
2009 2008 2009 2008
GAAP Net Loss $(1,716) $(1,267) $(3,706) $(4,066)
GAAP EPS $(0.04) $(0.03) $(0.09) $(0.11)
Stock Based Compensation 599 616 1,184 1,179
Debt Discount and Premium Amortization
and Issuance Cost 59 977 637 1,954
Amortization Related to Acquisitions 911 992 1,771 2,145
Loss on Early Extinguishment of Debt -- -- 4,573 --
Gain (Loss) on Derivatives 447 -- (1,204) --
Non GAAP Net Income $300 $1,318 $3,255 $1,212
Non GAAP EPS $0.01 $0.03 $0.08 $0.03
BMP Sunstone Corporation and Subsidiaries
Adjusted EBITDA Reconciliation
$( amounts in thousands)
For the Three Months For the Six Months
Ended June 30, Ended June 30,
2009 2008 2009 2008
Net Loss $(1,716) $(1,267) $(3,706) $(4,066)
Net Loss Reconciliation to Adjusted
EBITDA:
Interest expense, net 1,019 830 1,962 1,584
Income taxes 372 1,064 1,154 1,411
Depreciation 631 552 1,153 809
Amortization of intangibles and fair
value of inventory increase 911 992 1,771 2,095
Loss on Early Extinguishment of Debt -- -- 4,573 --
Gain (Loss) on derivatives 447 -- (1,204) --
Amortization of debt discount and
premium and debt issuance costs 59 977 636 1,954
ADJUSTED EBITDA $1,723 $3,148 $6,339 $3,787
SOURCE BMP Sunstone Corporation
http://www.bmpsunstone.com
More News:
Market Updates |
Stock Alerts |
All Trading News |
Stock Index
About TradingMarkets | Contact | Advertise | Careers | Link to Us | Site Map | Help | Terms & Conditions | Privacy Policy | Return Policy | Testimonials | Feedback
The Connors Group, Inc. ("Company") is not an investment advisory service, nor a registered investment advisor or broker-dealer and does not purport to tell or suggest which securities or currencies customers should buy or sell for themselves. The analysts and employees or affiliates of Company may hold positions in the stocks, currencies or industries discussed here. You understand and acknowledge that there is a very high degree of risk involved in trading securities and/or currencies. The Company, the authors, the publisher, and all affiliates of Company assume no responsibility or liability for your trading and investment results. Factual statements on the Company's website, or in its publications, are made as of the date stated and are subject to change without notice.
It should not be assumed that the methods, techniques, or indicators presented in these products will be profitable or that they will not result in losses. Past results of any individual trader or trading system published by Company are not indicative of future returns by that trader or system, and are not indicative of future returns which be realized by you. In addition, the indicators, strategies, columns, articles and all other features of Company's products (collectively, the "Information") are provided for informational and educational purposes only and should not be construed as investment advice. Examples presented on Company's website are for educational purposes only. Such set-ups are not solicitations of any order to buy or sell. Accordingly, you should not rely solely on the Information in making any investment. Rather, you should use the Information only as a starting point for doing additional independent research in order to allow you to form your own opinion regarding investments. You should always check with your licensed financial advisor and tax advisor to determine the suitability of any investment.
HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN INHERENT LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING AND MAY NOT BE IMPACTED BY BROKERAGE AND OTHER SLIPPAGE FEES. ALSO, SINCE THE TRADES HAVE NOT ACTUALLY BEEN EXECUTED, THE RESULTS MAY HAVE UNDER- OR OVER-COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE SHOWN.
The Connors Group, Inc.
10 Exchange Place, Suite 1800
Jersey City, NJ 07302
© Copyright 2009 The Connors Group, Inc.