Bodisen Biotech, Inc.Results for the six month period ended 30 June 2009
Bodisen Biotech, Inc. (the ¡°Company¡±) (OTC Pink Sheets: BBCZ; London AIM: BODI; website: www.bodisen.com) announces its six month unaudited results for the period ended 30 June 2009 which are extracted from the Company¡¯s 10-Q filed with the SEC.
Financial highlights
? Net Revenue for the six month period increased 25.6% to $2.605m up from $2.075m for the comparable period.
? Net income for the period was $1.210m for the period compared to $2.18m for the comparable period, which reflects the impact of bad debt recoveries in 2008.
Result of Operations
Six months ended June 30, 2009 compared to six months ended June 30, 2008
Revenue. We generated revenues of $2,605,528 for the six months ended June 30, 2009, an increase of $530,474 or 25.6%, compared to $2,075,054 for the six months ended June 30, 2008. The increase in revenue is primarily attributable to a decrease in our products price which resulted in a large increase in our sales volume.
Gross Profit. We achieved a gross profit of $388,813 for the six months ended June 30, 2009, a decrease of $395,111 or 50.4%, compared to $783,924 for the six months ended June 30, 2008. The decrease in gross profit was primarily attributable to an increase in our raw material costs. Gross margin (gross profit as a percentage of revenues), was 14.9% for the six months ended June 30, 2009 compared to 37.8% for the six months ended June 30, 2008. The decrease was primarily attributable to higher raw material costs.
Operating expenses. We incurred net operating expenses of $645,207 for the six months ended June 30, 2009, a decrease of $1,099,422 or 63.0%, compared to $1,744,629 for the six months ended June 30, 2008. The decrease in our operating expenses is primarily attributable to a decrease in our general cost of operations due to the reduction in our revenues during the past few years.
Aggregated selling expenses accounted for $27,118 of our operating expenses for the six months ended June 30, 2009, a decrease of $351,061 or 92.8%, compared to $378,179 for the six months ended June 30, 2008. The decrease in our aggregated selling expenses is primarily attributable to a decrease in marketing costs. During the six months ended June 30, 2009 we also recognized a loss on the disposal of property and equipment of $104,254. We had no such loss during the six months ended June 30, 2008. General and administrative expenses accounted for the remainder of our net operating expenses of $513,835 for the six months ended June 30, 2009, a decrease of $852,615 or 62.4%, compared to $1,366,450 for the six months ended June 30, 2008. The decrease in general and administrative expenses is primarily related to a general cost of operations due to the reduction in our revenues during the past few years.
Non Operating Income and Expenses. We had total non-operating income of $1,466,425 for the six months ended June 30, 2009, a decrease of $1,637,472 or 52.8%, compared to $3,103,897 for the six months ended June 30, 2008. Other income was $1,370,967 for the six months ended June 30, 2009 compared to $2,963,152 for six months ended June 30, 2008. The decrease in other income is primarily attributable to the large bad debt recoveries recognized during the six months ended June 30, 2008. The bad debt recoveries were $1,372,251 and $3,136,901 for the six months ended June 30, 2009 and 2008, respectively. Total non-operating income includes interest income of $314 for the six months ended June 30, 2009 compared to $140,745 of interest income for the six months ended June 30, 2008. The decrease in interest income in 2009 is primarily attributable to less cash in the bank generating interest income. Also included in non-operating income (expense) for the six months ended June 30, 2009 is $(211,610) related to the loss on the sale of two investments and $306,902 in equity income of another investment that we account for under the equity method.
Net Income. For the foregoing reasons, we had a net income of $1,210,031 for the six months ended June 30, 2009, a decrease of $974,347 or 44.6%, compared to $2,184,378 for the six months ended June 30, 2008. We had earnings per share of $0.06 and $0.12 for the six months ended June 30, 2009 and 2008, respectively.
About Bodisen Biotech, Inc.
Bodisen Biotech, Inc. is a manufacturer of liquid and organic compound fertilizers, pesticides, insecticides and agricultural raw material certified by the Petroleum Chemical Industry Administrative office of China (Chemical Petroleum Production Administrative Bureau), Shaanxi provincial government and Chinese government. The company is headquartered in Shaanxi province and is a Delaware corporation. The company files annual and periodic reports with the U.S. Securities and Exchange Commission, which are accessible at www.sec.gov.
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.
Enquiries:
Bodisen Biotech, Inc.
Bo Chen 0086 29 8707 4957
Charles Stanley Securities
Richard Thompson / Philip Davies 020 7149 6000
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