News Releases
  Releases on AIM
  Most Recent Reports
   
   
Releases on AIM

Bodisen Biotech Reports Unaudited First Quarter Financial Results

Review & Extracts of the Form10Q as required by the Securities & Exchange Commission

Bodisen Biotech, Inc. (the Company) (OTC Pink Sheets: BBCZ; London AIM:BODI; website: www.bodisen.com) today announced its first quarter results for the period ended March 31, 2007 which are extracted from the companys Form 10-Q filed with the SEC.

FIRST QUARTER FINANCIAL & OPERATIONAL HIGHLIGHTS

  • Revenues $5.01 million from $10.54 million in the same period of 2006.
  • Gross profit increased to $1.99 million from $4.24 million in the same period last year.
  • Net Income was a loss of ($1.51) million from a profit of $2.68 million in the same period of 2006.
  • Diluted EPS was ($0.08) compared with $0.15 in the same period last year.
  • Cash position remains strong at $7.11 million as at 31 March 2007.

Enquiries:

Charles Stanley Securities (Nominated Adviser)

Rick Thompson / Philip Davies / Freddy Crossley - 0207 149 6000

Results of Operations

Three months ended March 31, 2007 compared to three months ended March 31, 2006

Revenue. We generated revenues of $5,008,472 for the three months ended March 31, 2007, a decrease of $5,526,888 or 52.5%, compared to $10,535,360 for the three months ended March 31, 2006. The significant decrease in revenue was due to the negative impacton the company's reputation as a result of Bodisen being delisted by American Stock Exchange and the abnormally cold spring time weather of Shaanxi provincewhich affected cropplantings anddecreased the use of fertilizer.

Gross Profit. We achieved a gross profit of $1,990,222 for the three months ended March 31, 2007, a decrease of $2,246,017 or 53.0%, compared to $4,236,239 for the three months ended March 31, 2006. The significant decrease in gross profit was due to the decreasein our sales revenue. Gross margin (gross profit as a percentage of revenues), slightly decreased, down from 40.2% for the three months ended March 31, 2006, to 39.7% for the three months ended March 31, 2007.

Operating expenses. We incurred operating expenses of $3,521,523 for the three months ended March 31, 2007, a significant increase compared to $778,398 for the three months ended March 31, 2006. The significant increase in our operating expenses is primarily related to an increase in our allowance for bad debts during the three months ended March 31, 2007 of $1,360,277, which resulted from decrease of collections due to the damage to the company's reputation as discussed above. This significant increase in our allowance for bad debts offset the slight decrease in our aggregated selling expenses.

Aggregated selling expenses accounted for $349,014 of our operating expenses for the three months ended March 31, 2007, a decrease of $125,160 or 26.4% compared to $474,174 for the three months ended March 31, 2006. The decrease in our aggregated selling expenses is due to the decrease of transportation expense as a result of the decrease.in sales. General and administrative expenses accounted for the remainder of our operating expenses for the three months ended March 31, 2007, which increased $2,868,285 compared to $304,224 for the three months ended March 31, 2006. The increase in general and administrative expenses is due to an increased in our allowance for bad debts during the three months ended March 31, 2007 of $1,360,277,as discussed above and, to a lesser extent, higher legal fees.

Non Operating Income and Expenses. We had total non-operating income of $21,755 for the three months ended March 31, 2007 compared to total non-operating expense of $775,198 for the three months ended March 31, 2006. Total non-operating income in the first quarter of 2007 included $67,197 of other expenses while in the first quarter of 2006 we had $124,541 of other expenses. Total non-operating income includes interest income of $90,009 for the three months ended March 31, 2007 compared to only $28,063 of interest income for the three months ended March 31, 2006. The increase in the first quarter of 2007 is due to the increase in our cash balance as a result ofthe repayment of a short term loan the company made to non-related parties.Total non-operating income for the three months ended March 31, 2007 also includes interest expense of only $1,057 compared to $678,720 of interest expense for the three months ended March 31, 2006. The majority of the interest expense in the first quarter of 2006 relates to the $5 million note issued December 8, 2005, which was repaid during March 2006.

Net Income (Loss). For the foregoing reasons, we had a net loss of $1,509,546 for the three months ended March 31, 2007 compared to net income of $2,682,643 for the three months ended March 31, 2006. We had a loss per share of $(0.08) for the three months ended March 31, 2007 compared to earnings per share of $0.16 for the three months ended March 31, 2006.

About Bodisen Biotech, Inc.

Bodisen Biotech Inc. is a leading manufacturer of liquid and organic compound fertilizers, pesticides, insecticides and agricultural raw materials certified by the Petroleum Chemical Industry Administrative office of China (Chemical Petroleum Production Administrative Bureau), Shaanxi provincial government and Chinese government. Ranked the 16th fastest growing company in China by Forbes China in January 2006, the company is headquartered in Shaanxi province and is a Delaware corporation. The company's environmentally friendly ``green'' products have been proven to improve soil and plant quality, and increase crop yields.

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 BALANCE SHEETS

AS OF MARCH 31, 2007 AND DECEMBER 31, 2006

March 31,

December 31,

 

2007

2006

 

(unaudited)

 

ASSETS

 

 

CURRENT ASSETS:

 

Cash & cash equivalents

$

7,109,862

$

11,824,327

 

Accounts receivable, net of allowance for

19,475,083

18,875,368

 

doubtful accounts of $2,032,462 and $659,653

 

Other receivable

2,004,552

888,230

 

Inventory

3,672,282

1,794,585

 

Advances to suppliers

12,305,435

12,662,139

 

Prepaid expense and other current assets

200,392

195,821

 

 

Total current assets

44,767,606

46,240,470

 

 

PROPERTY AND EQUIPMENT, net

5,226,085

5,195,283

 

 

CONSTRUCTION IN PROGRESS

4,535,178

3,669,807

 

 

MARKETABLE SECURITY

4,003,710

6,500,869

 

 

INTANGIBLE ASSETS, net

2,041,084

2,054,346

 

 

OTHER ASSETS

3,546,829

3,553,433

 

 

LOAN RECEIVABLE

2,078,331

1,982,410

 

 

TOTAL ASSETS

$

66,198,823

$

69,196,618

 

 

LIABILITIES AND STOCKHOLDERS' EQUITY

 

 

CURRENT LIABILITIES:

 

Accounts payable

$

1,384,058

$

1,022,352

 

Accrued expenses

353,476

347,948

 

 

Total current liabilities

1,737,534

1,370,300

 

 

STOCKHOLDERS' EQUITY:

 

Preferred stock, $0.0001 per share; authorized 5,000,000 shares;

 

nil issued and outstanding

 

Common stock, $0.0001 per share; authorized 30,000,000 shares;

 

issued and outstanding 18,310,250 and 18,310,250

1,831

1,831

 

Additional paid-in capital

33,860,062

33,860,062

 

Other comprehensive income

3,576,427

5,431,910

 

Statutory reserve

4,314,488

4,314,488

 

Retained earnings

22,708,481

24,218,027

 

Total stockholders' equity

64,461,289

67,826,318

 

 

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY

$

66,198,823

$

69,196,618

 

BODISEN BIOTECH, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS AND OTHER COMPREHENSIVE INCOME (LOSS)

FOR THE THREE MONTH PERIODS ENDED MARCH 31, 2007 AND 2006

Three Month Periods Ended March 31,

2007

2006

(Unaudited)

(Unaudited)

Net Revenue

$

5,008,472

$

10,535,360

Cost of Revenue

3,018,250

6,299,121

Gross profit

1,990,222

4,236,239

Operating expenses

Selling expenses

349,014

474,174

General and administrative expenses

3,172,509

304,224

Total operating expenses

3,521,523

778,398

Income / (Loss) from operations

(1,531,301

)

3,457,841

Non-operating income (expense):

Other income (expense)

(67,197

)

(124,541

)

Interest income

90,009

28,063

Interest expense

(1,057

)

(678,720

)

Total non-operating income (expense)

21,755

(775,198

)

Net income / (loss)

(1,509,546

)

2,682,643

Other comprehensive income

Foreign currency translation gain / (loss)

641,676

(40,500

)

Unrealized gain (loss) on marketable equity security

(2,497,159

)

2,290,783

Comprehensive Income / (Loss)

$

(3,365,029

)

$

4,932,926

Weighted average shares outstanding :

Basic

18,310,250

17,215,232

Diluted

18,310,250

17,374,691

Earnings per share:

Basic

$

(0.08

)

$

0.16

Diluted

$

(0.08

)

$

0.15

BODISEN BIOTECH, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

FOR THE THREE MONTH PERIODS ENDED MARCH 31, 2007 AND 2006

Three Month Periods Ended March 31,

2007

2006

(unaudited)

(unaudited)

CASH FLOWS FROM OPERATING ACTIVITIES:

Net income (loss)

$

(1,509,546

)

$

2,682,643

Adjustments to reconcile net income to net cash

provided by (used in) operating activities:

Depreciation and amortization

115,221

103,161

Amortization of debt discounts

-

603,886

Exchange gain

-

124,541

Value of vested option issued to directors

-

7,523

Allowance for bad debts

1,360,277

-

(Increase) / decrease in assets:

Accounts receivable

(1,760,948

)

(4,300,470

)

Other receivable & Loan Receivable

(1,177,348

)

(14,144

)

Inventory

(1,851,263

)

(188,722

)

Advances to suppliers

487,098

1,565,316

Prepaid expense

(2,512

)

-

Other assets

-

765

Increase / (decrease) in current liabilities:

Accounts payable

354,315

724,157

Accrued expenses

1,992

62,910

Net cash provided by (used in) operating activities

(3,982,714

)

1,371,566

CASH FLOWS FROM INVESTING ACTIVITIES

Acquisition of property and equipment

(57,187

)

(43,776

)

Additions to construction in progress

(823,584

)

(349,147

)

Proceeds from other assets

43,583

-

Net cash used in investing activities

(837,188

)

(392,923

)

CASH FLOWS FROM FINANCING ACTIVITIES:

Payments on note payable

-

(5,000,000

)

Proceeds from issuance of common stock

-

26,682,511

Payment of offering costs

-

(2,747,227

)

Proceeds from the exercise of warrants

-

220,160

Net cash provided by financing activities

-

<' ;&,"vIE' ;&,"

19,155,444

Effect of exchange rate changes on cash and cash equivalents

105,437

(325,238

)

NET INCREASE /(DECREASE) IN CASH & CASH EQUIVALENTS

(4,714,465

)

19,808,849

CASH & CASH EQUIVALENTS, BEGINNING OF PERIOD

11,824,327

6,276,897

CASH & CASH EQUIVALENTS, END OF PERIOD

$

7,109,862

$

26,085,746

SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:

Interest paid

$

-

$

112,500

Income taxes paid

$

-

$

-

Note Earnings Per Share

Earnings per share for three months March 31, 2007 and 2006 were determined by dividing net income for the periods by the weighted average number of both basic and diluted shares of common stock and common stock equivalents outstanding.

The following is an analysis of the differences between basic and diluted earnings per common share in accordance with Statement of Financial Accounting Standards No. 128, Earnings Per Share.

Three Months Ended March 31,

2007

2006

Per

Per

Loss

Shares

Share

Income

Shares

Share

Basic earnings per share

Net income (loss)

$

(1,509,546

)

$

2,682,643

Weighed shares outstanding

18,310,250

17,215,232

$

(0.08

)

$

0.16

Diluted earnings per share

Net income (loss)

$

(1,509,546

)

$

2,682,643

Weighed shares outstanding

18,310,250

17,215,232

Effect of dilutive securities

Options

-

89,537

Warrants

-

69,922

18,310,250

17,374,691

$

(0.08

)

$

0.15

 

Copyright © 2004 bodisen.com