News Releases

Bodisen Biotech Reports Record First Quarter Earnings
Tuesday May 9, 4:14 pm ET

Year-Over-Year Revenue Growth of 124%, Net Income Up 200%

NEW YORK--(BUSINESS WIRE)--May 9, 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, today announced that it achieved record year-over-year revenue and earnings growth from the production and sale of its organic fertilizer and pesticide products for the first quarter ended March 31, 2006.


  • Revenues grew 124% to approximately $10.54 million for the first three months of 2006, from $4.70 million for the same period last year.
  • Gross Profit increased to approximately $4.24 million for the first quarter of 2006, from $1.65 million for the first quarter of 2005.
  • Income from Operations of approximately $3.46 million for the three months ended March 31, 2006, up approximately 181% from $1.23 million for the three months ended March 31, 2005.
  • Net Income was approximately $2.68 million or basic earnings per share of $0.16 and fully diluted earnings per share of $0.15, up from $796,733 or $0.05 per fully diluted share for the first quarter of 2005.
  • Excluding the impact of a one-time non-cash charge of approximately $750,000 or $(0.05) per share, related to issuance of warrants in the December 2005 $5,000,000 financing, the company's first quarter non-GAAP earnings per share would have been $0.20.

Karen Qiong Wang, Chief Executive Officer of Bodisen commented, "We're very pleased with our continued momentum and growth moving into 2006. During the quarter, we continued to see strong demand for our products, even as we raised prices twice during the quarter. Although historically our first quarter is the slowest quarter in a year, we achieved a robust gross margin of approximately 40%. Excluding the non-cash item warrants issuance related charge of approximately $750,000, our net margin exceeded 30% and non-GAAP earnings per share would have been $0.20. With the first quarter behind us, our second quarter is on track to achieve strong year-over-year revenues and earnings growth."


Bodisen achieved record year-over-year revenues of $10,535,360 for the quarter ended March 31, 2006, up 124% from the same period last year when the company reported revenues of $4,701,675. Growth in revenue was due to the continued high demand for the company's environmentally friendly bio compound fertilizer and liquid fertilizer products.


The company reported net income of $2,682,643, or basic earnings per share of $0.16 and diluted earnings per share of $0.15, for the quarter ended March 31, 2006. For the quarter ended March 31, 2005, the company reported net income of $796,733, or basic and diluted earnings per share of $0.05.


"Demand for organic fertilizers, liquid fertilizers and pesticides continues to grow at a high rate," said Ms. Wang. "With more than 60 products, Bodisen provides Chinese farmers with high quality, economically attractive and environmentally friendly total solutions that are competitively priced compared to traditional chemical fertilizer products. Taking less time to apply, our products have been scientifically proven to create between 10% to 35% higher crop yields and improve soil conditions in various regions. At the same time, farmers can sell their products as 'certified organic green foods,' potentially increasing their revenues since these foods typically are sold at significant price premiums at the retail level."

Commenting on the company's outlook for 2006, Ms. Wang continued, "With a favorable market environment, diversified product lines, nationwide distribution channels including more than 150 wholesale distributors and over 600 nationwide distribution centers, and strong brand recognition and local presence among our loyal target customers, we continue to expect to achieve substantial revenue growth as we move into our high volume second and third quarters and expect to deliver on our guidance of significant annual revenue and earnings growth for 2006, while targeting net margins in the 30% range."

Commenting on future growth, Bodisen's President Bo Chen commented: "Bodisen is in the process of evaluating several potential opportunities located in China's vast northwest and northeast farm regions. Bodisen's plan to build or acquire existing facilities serving these regions is well on track. We expect these new markets as well as our growing network of new distribution centers to significantly contribute to our growth in 2007 and beyond. Bodisen has a highly capable management team that is dedicated to meeting our 2007 growth targets and executing our current growth plan without diluting our shares."

About Bodisen Biotech, Inc.

A Delaware company, Bodisen is headquartered in the city of Yang Ling, Shaanxi Province, China's agricultural hub. 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 four product categories: Organic Compound Fertilizer; Organic Liquid Fertilizer; Pesticides & Insecticides, and agricultural raw materials. Bodisen's organic fertilizers can be absorbed by plants within 48 hours and enrich soil conditions. These 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 whose incomes depend on their crop yields. With approximately 600 (and growing) nationwide distribution centers, Bodisen has experienced rapid growth in its existing business.

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.


                                                  Three Months Ended
                                                       March 31,
                                                    2006        2005
                                              ----------- -----------
                                              (Unaudited) (Unaudited)

Net Revenue                                  $10,535,360 $ 4,701,675

Cost of Revenue                                6,299,121   3,047,498
                                              ----------- -----------

Gross profit                                   4,236,239   1,654,177

Operating expenses                                                  
    Selling expenses                             474,174     148,140
    General and administrative expenses          304,224     278,470
                                              ----------- -----------
         Total operating expenses                778,398     426,610

                                              ----------- -----------
Income from operations                         3,457,841   1,227,567

Non-operating income (expense):                                     
    Other income (expense)                      (124,541)   (416,703)
    Interest income                                28,063           -
    Interest expense                            (678,720)    (14,131)

                                              ----------- -----------
         Total non-operating income (expense)   (775,198)   (430,834)

                                              ----------- -----------
Net income                                   $ 2,682,643 $   796,733

Other comprehensive income                                          
     Foreign currency translation (loss)         (40,500)          -
     Unrealized gain on marketable equity                           
      security                                 2,290,783           -

                                              ----------- -----------
Comprehensive Income                         $ 4,932,926 $   796,733
                                              =========== ===========

Weighted average shares outstanding :                               
    Basic                                     17,215,232  15,268,000
                                              =========== ===========
    Diluted                                   17,374,691  15,529,458
                                              =========== ===========

Earnings per share:                                                 
    Basic                                    $      0.16 $      0.05
                                              =========== ===========
    Diluted                                  $      0.15 $      0.05
                                              =========== ===========
          AS OF MARCH 31, 2006

                                                           March 31,
CURRENT ASSETS:                                                     
    Cash & cash equivalents                              $26,085,746
    Accounts receivable, net of allowance for doubtful              
     accounts of $398,509                                 11,848,040
    Other receivable                                       1,058,775
    Inventory                                              1,377,426
    Advances to suppliers                                  3,021,216
    Prepaid expense                                           60,961
    Other current assets                                       2,770

              Total current assets                        43,454,934

 PROPERTY AND EQUIPMENT, net                               4,894,079

 CONSTRUCTION IN PROGRESS                                  2,236,125

 MARKETABLE SECURITY                                       9,101,217

 INTANGIBLE ASSETS                                         2,100,175

    TOTAL ASSETS                                         $61,786,530


 CURRENT LIABILITIES:                                                 
    Accounts payable                                     $   777,648
    Other payables                                         3,408,113
    Accrued expenses                                         473,253

              Total current liabilities                    4,659,014

 STOCKHOLDERS' EQUITY:                                              
    Preferred stock, $0.0001 per share; authorized 5,000,000 shares;
     none issued                                                   
  Common stock, $0.0001 per share; authorized 30,000,000 shares;
    issued and outstanding 18,176,917                          1,818
    Additional paid-in capital                            32,860,075
    Other comprehensive income                             6,781,292
    Statutory reserve                                      2,892,854
    Retained earnings                                     14,591,477
              Total stockholders' equity                  57,127,516

The Piacente Group, Inc.
Investor Relations:
Debra Chen, 212-481-2050 ext.604

Source: Bodisen Biotech, Inc.


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