Operatingexpenses increased 88.7% to $1.5 million due to increased advertising and freight costs consistent with higher sale volume.
General and administrative expenses were $9.0 million for the twelve months ended December 31, 2010 compared with $1.1 million for the same period in 2009, which was primarily due to $6.0 million in non-cash expenses related to share-based compensation to Global Pharm's employees as well as merger costs of $0.8 million related to the Company's reverse takeover transaction in 2010. The employee-based stock expenses have been fully amortized in 2010 and will not affect Global Pharm's net income in the future. Excluding these non-cash expenses and taking into account the added expenses related to becoming a public company, which resulted in increased professional service fees, such as legal and accounting services, the increase in general and administrative expenses remains consistent with the increase in net revenue.
Operating income was $15.9 million compared with $14.2 million for the twelve months ended December 31, 2009.
Net income for the twelve months ended December 31, 2010 was $11.2 million, or $0.51 per diluted weighted average share, compared with net income of $10.9 million, or $0.57 per diluted share, for the same period a year ago. Excluding the impact of non-cash expenses related to share-based compensation for employees and the Company's reverse takeover, adjusted net income for the twelve months ended December 31, 2010 was $17.9 million, or $0.82 per weighted average diluted share.
Financial ConditionAs of December 31, 2010, the Company had $4.3 million in cash and $19.8 million in accounts receivable compared with $7.5 million and $11.7 million as of December 31, 2009. The Company's inventories increased to $16.1 million as of December 31, 2010 from $9.4 million as of December 31, 2009, mainly due
|SOURCE Global Pharm Holdings Group, Inc.|
Copyright©2010 PR Newswire.
All rights reserved