NEW YORK, NY--(MARKET WIRE)--Aug 14, 2006 -- Bodisen Biotech,
Inc. (AMEX:BBC - News) (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 revenue and earnings growth from
the production and sale of organic fertilizer and pesticide products
during the second quarter ended June 30, 2006.
The following are some of the financial highlights for the second
quarter from the company's Form 10-Q filed with the SEC:
--
Revenues grew 95% to $16.4 million from $8.4 million in the same
period of 2005.
-- Gross profit increased to $6.4 million from
$3.3 million in the same period last year.
-- Net Income grew
118% to $5.9 million from $2.7 million in the same period of 2005.
-- Net income margin of approximately 36% due to strong sales in
high margin liquid fertilizers.
-- Fully diluted EPS increased
to $0.32 from $0.17 in the same period last year.
Mr. Bo Chen, President of Bodisen, commented:
"We experienced another record quarter of revenues and earnings
growth during the second quarter of 2006. Our results for the second
quarter and for the first half of 2006 reflect strong demand for our
environmentally friendly, high yield organic fertilizer solutions
and the growing awareness of the Bodisen brand among China's
farmers. Our earnings per share of $0.32 again exceeded analyst
estimates of $0.25 for the quarter. Our third quarter has
historically been the strongest quarter and we look forward to a
great year of record growth in 2006."
REVENUES
Bodisen achieved record revenues of $16,382,189
for the second quarter of 2006, up 95% from the prior year period
when the company reported revenues of $8,416,805. The growth in
revenue was primarily attributable to the increase in the customer
base as the company continued to aggressively market their products
and the growing awareness in the agricultural industry in the
markets in which they do business of the efficacy of their products.
GROSS PROFIT
Bodisen achieved a gross profit of $6,411,936
for the second quarter of 2006, up 97% from the prior year period
gross profit of $3,255,664. Gross margin increased to 39.1% in the
second quarter of 2006 from 38.7% in the same year ago period. The
increase in gross margin was primarily attributable to the increase
in the prices of main products.
NET INCOME
Bodisen achieved net income of $5,879,678 or
fully diluted EPS of $0.32 in the second quarter of 2006 compared to
net income of $2,692,014 or fully diluted EPS of $0.17 in the same
quarter last year. The increase was attributed to a successful
targeted marketing campaign to further saturate its existing markets
and to also further penetrate new markets and regions throughout
China.
POSITIVE OUTLOOK
Mr. Bo Chen, Bodisen's President, commented:
"The market opportunity in China for environmentally friendly
fertilizer products remains largely untapped and Bodisen is
well-positioned to benefit from China's rising standards of living
and end user consumers' demand for natural and organically grown
foods and produce. With solid visibility, we are on track to reach
our projections for 2006 and 2007. As Chinese farmers continue to
shift from chemical fertilizers to our environmentally friendly,
higher crop yield bio compound fertilizers, Bodisen will continue to
reap the benefits as a leading premium organic fertilizer brand
throughout China."
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 750
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.
BODISEN BIOTECH, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME AND OTHER COMPREHENSIVE INCOME
FOR THE THREE AND SIX MONTH PERIODS ENDED JUNE 30, 2006 AND 2005
(UNAUDITED)
Three Month Periods Ended Six Month Periods Ended
June 30, June 30,
--------------------------- ---------------------------
2006 2005 2006 2005
------------- ------------- ------------- -------------
Net Revenue $ 16,382,189 $ 8,416,805 $ 26,917,549 $ 13,118,480
Cost of Revenue 9,970,253 5,161,141 16,269,374 8,208,639
------------- ------------- ------------- -------------
Gross profit 6,411,936 3,255,664 10,648,175 4,909,841
Operating expenses
Selling expenses 671,469 231,768 1,145,643 379,908
General and
administrative
expenses 546,738 14,709 850,962 709,882
------------- ------------- ------------- -------------
Total operating
expenses 1,218,207 246,477 1,996,605 1,089,790
------------- ------------- ------------- -------------
Income from
operations 5,193,729 3,009,187 8,651,570 3,820,051
Non-operating
income (expense):
Other income
(expense) 656,916 -- 532,375 --
Interest income 29,231 48,055 57,294 48,055
Interest expense (198) (365,228) (678,918) (379,360)
------------- ------------- ------------- -------------
Total
non-operating
income (expense) 685,949 (317,173) (89,249) (331,305)
------------- ------------- ------------- -------------
Net income 5,879,678 2,692,014 8,562,321 3,488,746
Other comprehensive
income
Foreign currency
translation (loss) 158,603 -- 118,103 --
Unrealized gain on
marketable equity
security (3,384,580) -- (1,093,797) --
------------- ------------- ------------- -------------
Comprehensive
Income $ 2,653,701 $ 2,692,014 $ 7,586,627 $ 3,488,746
============= ============= ============= =============
Weighted average
shares outstanding:
Basic 18,176,917 15,272,926 17,698,731 15,270,759
============= ============= ============= =============
Diluted 18,310,931 15,692,205 17,848,452 15,562,010
============= ============= ============= =============
Earnings per share:
Basic $ 0.32 $ 0.18 $ 0.48 $ 0.23
============= ============= ============= =============
Diluted $ 0.32 $ 0.17 $ 0.48 $ 0.22
============= ============= ============= =============
BODISEN BIOTECH, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET
AS OF JUNE 30, 2006
(UNAUDITED)
ASSETS
------
CURRENT ASSETS:
Cash & cash equivalents $17,447,381
Accounts receivable, net of allowance for doubtful accounts of
$697,209 17,613,943
Other receivable 1,526,114
Inventory 1,145,025
Advances to suppliers 8,934,286
Prepaid expense 47,714
Other current assets 2,083
----------
Total current assets 46,716,546
PROPERTY AND EQUIPMENT, net 5,160,897
CONSTRUCTION IN PROGRESS 2,618,316
MARKETABLE SECURITY 5,716,637
INTANGIBLE ASSETS 2,072,233
----------
TOTAL ASSETS $62,284,629
==========
LIABILITIES AND STOCKHOLDERS' EQUITY
------------------------------------
CURRENT LIABILITIES:
Accounts payable $ 1,852,149
Other payables 154,246
Accrued expenses 497,017
----------
Total current liabilities 2,503,412
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 3,555,315
Statutory reserve 3,742,991
Retained earnings 19,621,018
----------
Total stockholders' equity 59,781,217
----------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $62,284,629
==========
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