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BMP Sunstone Reports Fourth Quarter and Full Year 2009 Financial Results
Date:3/15/2010

PLYMOUTH MEETING, Pa., March 15 /PRNewswire-Asia-FirstCall/ -- BMP Sunstone Corporation (Nasdaq: BJGP) ("BMP Sunstone" or the "Company") today announced financial results for the fourth quarter and fiscal year ended December 31, 2009.

    Fourth Quarter 2009 Financial Highlights:
    -- Revenue increased to $41.5 million, from $36.6 million in the fourth
       quarter of 2008;
    -- Gross profit increased 21% to $23.3 million, from $19.2 million in the
       fourth quarter of 2008;
    -- Gross margin increased to 56.1% from 52.4% in the prior year period;
    -- Operating income increased to $4.0 million from $1.8 million in the
       prior year period;
    -- Adjusted EBITDA, as defined below, was $5.5 million for the quarter, up
       69% on a year over year basis.

    Full Year 2009 Financial Highlights:
    -- Revenue increased 28% to $146.9 million, from $114.9 million in 2008;
    -- Gross profit increased 29% to $74.0 million, from $57.3 million in 2008;
    -- Gross margin increased to 50.4% from 49.9% on a year over year basis;
    -- Operating income increased to $8.4 million from $3.7 million in the
       prior year period;
    -- Adjusted EBITDA, as defined below, was $14.4 million for the year 2009,
       up 36% on a year over year basis.

David Gao, Chief Executive Officer of BMP Sunstone, stated, "We achieved a record year in 2009 and we are proud of the progress we have made across our operating segments, all of which were profitable on an operating basis by the end of the year. Revenue growth and operating income performance were particularly strong in the back part of the year. As we enter 2010, we are focused on driving greater-than-industry growth with our diverse product portfolio, established distribution in many of China's most important healthcare markets, and leading brands in pediatrics and women's health."

Fourth Quarter 2009 Financial Results

Revenue in the fourth quarter of 2009 increased 13.4% to $41.5 million from $36.6 million in the fourth quarter of 2008, reflecting increased demand for the Company's manufactured products and licensed products. The former increased by 20.7% to $25.6 million and the latter by 34.6% to $2.1 million, reflecting sales and marketing efforts of Propess, Anpo, Ferriprox and Galake compared to the prior year. Revenue from distribution was roughly flat on a year over year basis at $13.9 million, reflecting continued sales performance at Rongheng and from Wanwei's major products.

Gross profit in the fourth quarter of 2009 increased 21.3% to $23.3 million from $19.2 million in the fourth quarter of 2008. Gross margin was 56.1% compared to 52.4% in the prior year period. Gross margin performance reflects increased sales of higher margin products from manufactured products and licensed products, which carried margins of 80.6% and 62.3% respectively.

The Company's operating income improved significantly year over year to $4.0 million in the fourth quarter of 2009 compared to $1.8 million in the fourth quarter of 2008. Non-GAAP operating income was $5.5 million in the fourth quarter of 2009, compared to $3.5 million in the prior year period, further highlighting the significant increase in revenues contributed from acquired businesses in the year over year period.

Non-GAAP net income was $3.6 million, or $0.07 per diluted share, compared to $4.1 million, or $0.10 per diluted share, in the fourth quarter of 2008. On a GAAP basis, the Company reported net income of $2.0 million, or $0.04 per diluted share, compared to $1.4 million, or $0.03 per diluted share, in the fourth quarter of 2008. During the fourth quarter of 2008, the Company had a $1.4 million tax benefit reflecting the reduction in tax rate from 25% to 15% for 2008, 2009 and 2010, as a result of receiving hi-tech tax status.

Non-GAAP net income and earnings per share exclude stock based compensation expense, amortization related to acquisitions, amortization of debt discount and issuance cost, loss on early extinguishment of debt and gain on the embedded derivative value on convertible notes. Adjusted EBITDA is a non-GAAP measure which provides earnings before interest, taxes, depreciation and amortization and excludes loss on early extinguishment of debt and gain on the embedded derivative value on convertible notes. Please refer to the financial tables provided in this news release for a reconciliation of GAAP results to non-GAAP results for the three and twelve month periods ended December 31, 2008 and 2009.

Full Year 2009 Financial Results

Revenue in the fiscal year 2009 increased 27.9% to $146.9 million from $114.9 million in 2008, reflecting approximately $84.0 million in revenue from Sunstone, which was up 27.8% on a year over year basis. Revenue from distribution increased 27.7% to $55.8 million from $43.7 million in the year 2008. Revenue from licensed products increased 30.0% to $7.0 million from $5.4 million in 2008, reflecting sales and marketing efforts of Propess, Anpo, Ferriprox and Galake, compared to the prior year.

Gross profit increased 29.1% to $74.0 million from $57.3 million in 2008, and gross margin for the year was 50.4% compared to 49.9% in the prior year. Higher gross profit largely reflects revenue from the sales of the Company's manufactured products, which yielded a gross margin of 77.8% in 2009.

The Company's operating income improved significantly year over year to $8.4 million compared to $3.7 million in 2008. Operating expenses of $65.6 million reflect a 20.5% increase in sales and marketing expenses and a 28.4% increase in general and administrative expenses, commensurate with year over year growth in the business. Non-GAAP operating income reached $14.3 million in 2009 compared to $10.5 million in the prior year, further highlighting the significant increase in revenues contributed from acquired businesses in the year over year period.

Non-GAAP net income was $8.2 million, or $0.17 per diluted share, in 2009 compared to $7.2 million, or $0.18 per diluted share, in 2008. On a GAAP basis, the Company's net loss improved to $2.0 million, a net loss of $0.05 per diluted share, from a net loss of $3.4 million, a net loss of $0.09 per diluted share, in 2008.

Balance Sheet

As of December 31, 2009, the Company had cash and cash equivalents of $21.5 million and notes receivable of $17.5 million, totaling $39.1 million. Notes receivables from customers for the settlement of trade receivable balances are guaranteed by established banks in China and have maturities of six months or less.

Financial Guidance

In 2010, revenue is anticipated to grow from $146.9 million for 2009 to $160 million - $170 million.

The Company expects adjusted EBITDA for the full year 2010 to reach $16 million - $17 million.

The Company expects non-GAAP net income for the full year 2010 to reach $9 million - $10 million.

Yanping Zhao Promoted to Chief Operating Officer

Today the Company announced Yanping Zhao has been promoted to Chief Operating Officer of BMP Sunstone. Ms. Zhao has served as the Corporate Vice President of BMP Sunstone since October 2007. Prior to joining BMP Sunstone in 2007, Ms. Zhao held various senior positions with Sino Biopharmaceutical Ltd. Ms Zhao has successfully grown BMP China's operations and has played a critical role helping the Company achieve operational excellence at all business units as well as in the successful transition at Sunstone.

Conference Call

The Company will hold a conference call at 5:00 pm ET on March 15, 2010 to discuss its results. Listeners may access the call by dialing 1-888-679-8035 or 1-617-213-4848 for international callers, access code: 60008597. Pre-registration and a webcast will be available through the Company's website at http://www.bmpsunstone.com . A replay of the call will be accessible through March 22, 2010 by dialing 1-888-286-8010 or 1-617-801-6888 for international callers, access code: 50833260.

About BMP Sunstone Corporation

BMP Sunstone Corporation ("BMP Sunstone" or the "Company") is a specialty pharmaceutical company that is building a proprietary portfolio of branded pharmaceutical and healthcare products in China. Through Sunstone Pharmaceutical Co. Ltd., the Company manufactures leading pediatric and women's health products, including two of China's most recognized brands, "Hao Wawa" and "Confort," sold throughout the country in approximately 120,000 pharmacies. The Company also markets a portfolio of products under exclusive multi-year licenses into China, primarily focused on women's health and pediatrics, as well as provides pharmaceutical distribution services through subsidiaries in Beijing and Shanghai. BMP Sunstone's main office is in Beijing, with a U.S. office in Plymouth Meeting, PA. For more information, please visit http://www.bmpsunstone.com .

Safe Harbor Statement

This news release contains forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995. Forward-looking statements include statements concerning plans, objectives, goals, strategies, future events or performance, and underlying assumptions and other statements that are other than statements of historical facts, including but not limited to statements about the Company's strategic and market penetration strategies and the potential effects of the listing of the Company's products on China's National (Medical) Insurance Catalog. These statements are subject to uncertainties and risks including, but not limited to, operating performance, general financial, economic, and political conditions affecting the biotechnology and pharmaceutical industries and the Chinese pharmaceutical market, the ability to timely manufacture and distribute the Company's products and other risks contained in reports filed by the Company with the Securities and Exchange Commission. In addition, the Company disclaims any obligation to update any forward-looking statements to reflect events or circumstances after the date hereof.



                 BMP Sunstone Corporation and Subsidiaries
              Condensed Consolidated Statements of Operation
            ($ amounts, except per share amounts in thousands)

                                          For the Three
                                           Months Ended    For the Year Ended
                                           December 31,        December 31,
                                          2009     2008      2009      2008
    Revenues:
    Third parties                        $41,416  $35,267  $142,417  $108,246
    Related parties                           81    1,370     4,451     6,621
    Total Revenues                        41,497   36,637   146,868   114,867
    Cost of Goods Sold                    18,216   17,437    72,859    57,557
    Gross Profit                          23,281   19,200    74,009    57,310
    Sales and Marketing Expenses          14,156   13,415    47,778    39,666
    General and Administration Expenses    5,089    4,012    17,844    13,898
    Total Operating Expenses              19,245   17,427    65,622    53,564
    Profit From Operations                 4,036    1,773     8,387     3,746
    Other Income (Expense):
    Interest Income                           65        2       225        70
    Interest Expense                      (1,061)  (1,531)   (4,430)   (6,301)
    Debt Issuance Cost Amortization         (120)    (210)     (446)     (840)
    Equity Method Investment Income         (164)      --        25       675
    Loss on Early Extinguishment of Debt      --       --    (4,573)       --
    Gain(Loss) on Derivatives                 --       --     1,204        --
    Total Other Income (Expense)          (1,280)  (1,739)   (7,995)   (6,396)
    Profit (Loss) Before Provision For
     Income Taxes                          2,756       34       392    (2,650)
    Provision For Income Taxes               809   (1,406)    2,392       792
    Net Profit (Loss)                      $1,947   $1,440   $(2,000)  $(3,442)
    Less: Net Loss Attributable to the
     Noncontrolling Interest                  61       --        96        --
    Net Profit (Loss) Attributable to BMP
     Sunstone Corporation                 $2,008   $1,440   $(1,904)  $(3,442)

    Basic Profit (Loss) Per Share          $0.05    $0.04    $(0.05)   $(0.09)
    Fully-Diluted Profit (Loss) Per
     Share                                 $0.04    $0.03    $(0.05)   $(0.09)

    Basic Weighted-average Shares
     Outstanding                          41,716   40,185    41,398    38,617
    Fully Diluted Weighted-average
     Shares Outstanding                   50,676   41,408    48,633    39,841




                 BMP Sunstone Corporation and Subsidiaries
               Condensed Consolidated Statements of Operation
             ($ amounts, except per share amounts in thousands)
                                    Non GAAP

                                          For the Three
                                           Months Ended    For the Year Ended
                                           December 31,       December 31,
                                          2009     2008      2009      2008
    Revenues:
    Third parties                        $41,416  $35,267  $142,418  $108,246
    Related parties                           81    1,370     4,451     6,621
    Total Revenues                        41,497   36,637   146,869   114,867
    Cost of Goods Sold                    18,101   17,308    72,400    56,543
    Gross Profit                          23,396   19,329    74,469    58,324
    Sales and Marketing Expenses          13,409   12,532    44,799    36,607
    General and Administration Expenses    4,470    3,342    15,360    11,194
    Total Operating Expenses              17,879   15,874    60,159    47,801
    Profit From Operations                 5,517    3,455    14,310    10,523
    Other Income (Expense):
    Interest Income                           21        2       100        70
    Interest Expense                      (1,069)    (765)   (3,988)   (3,234)
    Debt Issuance Cost Amortization           --       --        --        --
    Equity Method Investment Income         (164)      --        25       675
    Loss on Early Extinguishment of Debt      --       --        --        --
    Gain on Derivatives                       --       --        --        --
    Total Other Income (Expense)          (1,212)    (763)   (3,863)   (2,489)
    Profit Before Provision For Income
     Taxes                                 4,305    2,692    10,447     8,034
    Provision For Income Taxes               809   (1,406)    2,392       792
    Net Profit                            $3,496   $4,098    $8,055    $7,242
    Less: Net Loss Attributable to the
     Noncontrolling Interest                  61       --        96        --
    Net Profit Attributable to BMP
     Sunstone Corporation                  3,557    4,098     8,151     7,242
    Basic Profit Per Share                 $0.08    $0.10     $0.20     $0.19
    Fully Diluted Profit Per Share         $0.07    $0.10     $0.17     $0.18

    Basic Weighted-average Shares
     Outstanding                          41,559   40,185    41,398    38,617
    Fully Diluted Weighted-average
     Shares Outstanding                   50,676   41,408    48,863    39,841




                    BMP Sunstone Corporation and Subsidiaries
                      Condensed Consolidated Balance Sheets
                             ($ amounts in thousands)

                                               December 31,      December 31,
                                                    2009              2008
    Assets
    Current Assets:
    Cash and Cash Equivalents                      $21,544           $15,740
    Restricted Cash                                  1,125             1,150
    Notes Receivable                                17,541            15,797
    Accounts Receivable, net of allowance
     for doubtful accounts of $481 and
     $127                                           37,752            30,897
    Inventory, net of allowance for
     obsolescence of $98 and $0                      9,811            10,184
    Due from Related Party                              --             1,834
    Receivable from Alliance Unichem                 7,550                --
    Other Receivables                                3,648             2,168
    VAT Receivable                                   1,093               921
    Prepaid Expenses and Other Current
     Assets                                          6,322             6,247
    Total Current Assets                           106,386            84,938
    Property and Equipment, net                     30,967            22,840
    Investment in Alliance BMP Limited                  --            15,093
    Investment in Shengda                            2,950                --
    Investments, at Cost                               146               146
    Goodwill                                        70,033            69,866
    Other Assets                                       405               875
    Land Use Rights, net of accumulated
     amortization                                    2,860             2,002
    Intangible Assets, net of accumulated
     amortization                                   38,508            41,891
    Total Assets                                  $252,255          $237,651

    Liabilities and Equity
    Current Liabilities:
    Notes Payable and Bank Borrowings,
     net of debt discounts                          $6,406           $33,591
    Accounts Payable                                24,465            27,482
    Due to Related Parties                           1,437             4,361
    Deferred Revenues                                  208               128
    Accrued Expenses                                18,478            14,601
    Total Current Liabilities                       50,994            80,163
    Long-Term Debt, including debt
     premium                                        36,749                --
    Deferred Taxes                                   9,097             9,856
    Total Liabilities                               96,840            90,019
    Commitment and Contingencies                        --                --
    Equity:
    Common Stock, $.001 Par Value;
     75,000,000 and 50,000,000 Shares;
     41,931,987 and 40,246,410 Shares
     Issued and Outstanding as of
     December 31, 2009 and December 31,
     2008, respectively                                 42                40
    Additional Paid in Capital                     168,772           160,864
    Common Stock Warrants                            8,621             9,049
    Accumulated Deficit                            (32,946)          (31,042)
    Accumulated Other Comprehensive
     Income                                          9,486             8,721
    Total BMP Sunstone Corporation
     Stockholders' Equity                          153,975           147,632
    Noncontrolling Interest                          1,440                --
    Total Liabilities and Equity                  $252,255          $237,651




                   BMP Sunstone Corporation and Subsidiaries
                         Non GAAP Reconciliations
                   $( amounts, except per share in thousands)


                                          Three Months Ended    Year Ended
                                             December 31,      December 31,
                                            2009     2008     2009     2008
    GAAP Gross Profit                      $23,281   19,200  $74,009  $57,310
    Amortization Related to Acquisition        115      129      460    1,014
    Non GAAP Gross Profit                  $23,396  $19,329  $74,469  $58,324

                                          Three Months Ended    Year Ended
                                             December 31,      December 31,
                                              2009     2008     2009     2008
    GAAP Operating Income                   $4,036   $1,773   $8,387   $3,746
    Stock Based Compensation                   596      622    2,380    2,438
    Amortization Related to Acquisitions       885    1,060    3,543    4,339
    Non GAAP Operating Income               $5,517   $3,455  $14,310  $10,523

                                          Three Months Ended    Year Ended
                                             December 31,      December 31,
    (all amounts in $000)                     2009     2008     2009     2008
    GAAP Net Income (Loss)                   $2,008   $1,440  $(1,904) $(3,442)
    GAAP EPS                                 $0.05    $0.03   $(0.05)  $(0.09)

    Stock Based Compensation                   596      622    2,380    2,438
    Debt Discount and Premium Amortization
     and Issuance Cost                          68      976      763    3,907
    Amortization Related to Acquisitions       885    1,060    3,543    4,339
    Loss on Early Extinguishment of Debt        --       --    4,573       --
    Gain (Loss) on Derivatives                  --       --   (1,204)      --
    Non GAAP Net Income                     $3,557   $4,098   $8,151   $7,242
    Non GAAP EPS                             $0.07    $0.10    $0.17    $0.18




                      BMP Sunstone Corporation and Subsidiaries
                           Adjusted EBITDA Reconciliation
                             $(amounts in thousands)

                                          For the Three
                                           Months Ended  For the Year Ended
                                           December 31,     December 31,
    (all amounts in $000)                   2009    2008     2009     2008
    Net Income (Loss)                      $2,008  $1,440  $(1,904) $(3,442)
    Net Loss Reconciliation to Adjusted
     EBITDA:
    Interest expense, net                    996     763    3,837    3,164
    Income taxes                             809  (1,406)   2,392      792
    Depreciation                             692     418    2,437    1,842
    Amortization of intangibles and fair
     value of inventory increase             885   1,042    3,543    4,339
    Loss on Early Extinguishment of Debt      --      --    4,573       --
    Gain (Loss) on derivatives                --      --   (1,204)      --
    Amortization of debt discount and
     premium and debt issuance costs          68     976      763    3,907
    ADJUSTED EBITDA                       $5,458  $3,233  $14,437  $10,602

SOURCE BMP Sunstone Corporation

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