NEW YORK--(BUSINESS WIRE)--April 3, 2006--Bodisen Biotech, Inc.,
(AMEX:BBC, London AIM:BODI, website: /), the
first China based environmentally friendly bio fertilizer company
listed on a US stock exchange, and dually listed in London,
announced today that the company experienced strong sales in the
first quarter of 2006. Bodisen sees record earnings for the quarter
ended March 31, 2006.
In the first quarter that ended on March 31, 2005, Bodisen
reported total revenues of $4,701,675 and net income of $796,733, or
$0.05 fully diluted earnings per share.
On the First Quarter Earnings
Karen Qiong Wang, CEO of Bodisen commented: "In 2005, Bodisen
reported a year of record sales and earnings. The 4th quarter of
each year is historically the slowest period for the agricultural
industry due to the frozen winter season and less farming
activities. Our earnings in 2005 would have been approximately
$570,000 ($0.04 per share) higher, had we not spent critically
important marketing expenses in the 4th quarter of 2005 for 2006
related marketing efforts in anticipation of strong growth in 2006.
With a sound marketing program in place, we started the 2006
planting season with a strong balance sheet, abundant capital
without additional funding needs, deeper market penetration and a
strong nationally recognized "Bodisen" brand, which we believe will
result in continued rapid growth for the company in 2006. Our
factories are operated around the clock to keep up with growing
customer demand. We look forward to reporting record earnings for
our first quarter and building on this growth in the upcoming second
and third quarters, which typically are our strongest quarters of
the year."
2006 Guidance and Update
Ms. Wang said,"Since entering the public market in March 2004,
Bodisen has consistently achieved high double digit year-over-year
sales and earnings growth. With more than 60 products, enhanced
brand recognition, an extensive distribution network, strong market
demand for organic bio-fertilizers and sufficient capital resources,
we expect to continue to achieve strong year-over-year revenue and
earnings growth in 2006."
"In November 2005, we received $43 million in signed orders for
2006 at two large industry trade shows, which we believe represent
approximately 70% of our expected annual sales in 2006 and already
exceeds our 2005 reported revenues of approximately $31.0 million.
In 2006, we expect to at least double our 2005 sales volume while
targeting net margin of approximately 30%. As Chinese farmers
increasingly transition from chemical fertilizers to more
cost-effective, higher yield and environmentally friendly organic
bio-fertilizers, Bodisen is well-positioned to benefit from this
favorable market environment. With an extensive market reach
covering almost 60% of China, Bodisen is able to supply farmers with
complete agricultural product solutions that meet their changing
needs throughout the year," said Ms. Wang.
In addition to its expected revenue growth and net margin
performance, the company stated that its 2006 plans include the
completion of two manufacturing facilities in the northeast and
northwest regions of China, which are two of the largest farming
areas in China. Bodisen already has established distribution
channels in these areas through sales of its high margin liquid
fertilizers. The facilities are expected to be up and running in
2006, in time for the 2007 planting season product sales. Bodisen
believes that the added capacity could potentially double the
company's sales in 2007 compared to 2006. China is the largest
fertilizer market in the world with a total market size of
approximately $17 billion annually for agricultural products.
Bodisen has considerable room for growth for many years to come.
"After completing extensive due diligence on our business and
financials led by global law firms Jones Day, ReedSmith and
accounting firm Deloitte & Touche, we completed our dual listing
in London during the first quarter. The successful dual listing not
only provided Bodisen with growth capital and greater name exposure
but also opened up new potential product distribution channels for
the company as Bodisen receives more and more product requests from
European and other international markets. Today, Bodisen is a strong
company with a focused management team and no plans to dilute
existing shares. The company has a strong and successful operations
model capable of sustaining our rapid growth in 2006, 2007 and
beyond." said Ms. Wang.
About Bodisen Biotech, Inc.
A Delaware company, Bodisen is headquartered in Shaanxi, China's
agricultural hub. In January 2006, Bodisen was ranked the 16th
fastest growing company in China by Forbes China. The Bodisen brand
is a highly recognized fertilizer brand in China. Its
environmentally friendly "green" products support the mandate of the
Chinese government to increase crop yields for the purpose of
decreasing China's dependency on food imports. Utilizing proprietary
agricultural technologies, Bodisen sells over 60 packaged products,
broken down into 4 product categories: Organic Compound Fertilizer;
Organic Liquid Fertilizer; Pesticides & Insecticides, and
agricultural raw materials. Bodisen's organic fertilizers are
government certified as "organic" and can be absorbed by plants
within 48 hours and enrich soil conditions without the damaging
effects associated with chemical fertilizers. Bodisen's products
address grains, vegetables, and fruit crops and have been proven to
increase crop yields by 10% to 35% while being environmentally
friendly. Among China's population of 1.3 billion, approximately 900
million are farmers or have agriculture related jobs whose incomes
depend on their crop yields. With approximately 600 (and growing)
nationwide distribution centers, Bodisen has experienced rapid
growth.
Safe Harbor Statement
This press release may contain forward-looking statements within
the meaning of the "safe harbor" provisions of the Private
Securities Litigation Reform Act of 1995. These statements are based
on the current expectations or beliefs of Bodisen Biotech, Inc.
management and are subject to a number of factors and uncertainties
that could cause actual results to differ materially from those
described in the forward-looking statements.