Selling and G&A expenses in the third quarter of 2009 rose to $1.3 million from $0.9 million as the company expanded its distribution network.
Given our good record on not losing any receivables, we now feel more comfortable in our ability to collect our account receivables. After analyzing our receivable collection history and also a number of other factors including macro economy and industry bad debt experience rates, management revised bad debt allowance estimates. The change in the estimate for bad debt reserve resulted in a benefit of $2.8 million for the third quarter of 2009.
Operating income for the third quarter of 2009, including the effect of the change in bad debt estimate, was $8.1 million, an increase of 72% from $4.7 million for the same period in 2008.
Net income for the third quarter of 2009 (which also includes the effect of the change in bad debt estimate) increased 69% to $7.2 million, up from $4.3 million reported in the same period of 2008. Diluted earnings per share was $0.17 in the third quarter of 2009, compared to $0.10 in the third quarter of 2008.
As of September 30, 2009, the Company had cash and cash equivalents of $3.8 million, which represented 4.0% of total assets, compared to $6.9 million, or 9.2% of total assets, as of December 31, 2008.
Business Update -- On August 18, 2009, the Company announced that it has received official approval from China's State Food and Drug Administration ("SFDA") for the production of generic Omeprazole Sodium for Injection. Omepra
|SOURCE China Pharma Holdings, Inc.|
Copyright©2009 PR Newswire.
All rights reserved