PLYMOUTH MEETING, Pa., May 18 /PRNewswire-Asia-FirstCall/ -- BMP Sunstone Corporation (Nasdaq: BJGP) ("BMP Sunstone" or the "Company"), today announced financial results for the first quarter ended March 31, 2009.
Financial Highlights from the First Quarter Ended March 31, 2009 -- First quarter revenues increased to $39.3 million from $18.1 million in the prior year period. -- Gross profit increased to $20.7 million from $7.7 million in the prior year period. Gross margin was 52.6% versus 42.7%. -- Operating income improved to $3.2 million from a loss of $1.4 million in the prior year period. -- Non-GAAP net income was $3.0 million, compared to a net loss of $106,000 in the first quarter of 2008. -- Non-GAAP EPS, as defined below, was $0.07 for the quarter, compared to net loss per share of ($0.00) in the prior year period. -- Adjusted EBITDA was $4.6 million in the first quarter of 2009, compared to $639,000 in the first quarter of 2008. -- First quarter 2009 financial results include a net non-cash loss of approximately $2.9 million, reflecting a loss on the early extinguishment of debt, partially offset by a gain on the embedded derivative value on convertible notes.
Non-GAAP net income and earnings per share exclude stock based compensation expense, amortization related to Sunstone and Wanwei 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-month periods ended March 31, 2009 and 2008.
David Gao, Chief Executive Officer of BMP Sunstone, stated, "We are very pleased with our financial performance in the first quarter of 2009. Our results reflect continued revenue growth, operating improvements and cost efficiencies."
First Quarter 2009 Financial Results
Revenue in the first quarter of 2009 increased to a record $39.3 million from $18.1 million in the first quarter of 2008, reflecting increased demand for the Company's manufactured and licensed products, including $24.5 million of revenue from Sunstone, which was acquired in February of 2008. Revenue from distribution increased 80% to $13.4 million in the first quarter of 2009 from $7.4 million in the prior year period, reflecting revenue from Rongheng, which was acquired in July 2008, and sales growth of Wanwei's major products. Revenue from licensed products increased 13% to $1.4 million from $1.2 million in the prior year period, reflecting sales and marketing efforts of Anpo, Propess, Ferriprox and Galake compared to the prior year.
Gross profit in the first quarter of 2009 increased to a record $20.7 million from $7.7 million in the first quarter of 2008. Gross margin was also a record 52.6%, compared to 42.7% in the prior year period. Gross margin performance reflects increased sales of higher margin products and services from Sunstone and BMP China.
Operating income was a record $3.2 million in the first quarter of 2009, compared to an operating loss of $1.4 million in the first quarter of 2008, reflecting continued cost control and cost synergies. General and administrative expenses as a percentage of revenue were approximately 10.0%, compared to 17.4% in the prior year period.
Non-GAAP net income was $3.0 million, or $0.07 per diluted share, compared to a non-GAAP net loss of $106,000, or ($0.00) per diluted share, in the first quarter of 2008. The EPS calculation is based on 40.8 million diluted shares, compared to 35.1 million diluted shares in the prior year period. On a GAAP basis, the Company reported net loss of $2.0 million in the first quarter of 2009, or ($0.05) per share, compared to a net loss of $2.8 million, or ($0.08) per share, in the prior year period.
First quarter financial results include non-cash items related to the Company's convertible notes. These include $4.6 million in deferred loan costs, debt discount and debt premium, relative to the early extinguishment of debt, offset by a $1.6 million gain on the embedded derivatives in the January 2009 notes and common stock warrants issued as part of the February 2009 equity issuance.
As of March 31, 2009, the Company had cash and cash equivalents of $21.2 million and notes receivable of $18.8 million, totaling $40.0 million. Notes receivables are notes accepted from customers for the settlement of trade receivable balances. All notes receivables are guaranteed by established banks in China and have maturities of six months or less.
BMP Sunstone is reiterating its revenue, non-GAAP and EBITDA guidance for 2009. As previously announced, for the fiscal year 2009, revenue is anticipated to increase at least 35% year over year to reach $150 to $160 million. EBITDA is expected to reach $16 million to $18 million, and non-GAAP net income is expected to reach $9 million to $11 million.
Gao continued, "China's healthcare opportunity is large and growing. We believe our combination of branded OTC products at Sunstone, in-licensed RX products at BMP China, and our established distribution networks -- which enable us to control sales channels in key markets -- position us very competitively. We remain focused on delivering enhanced profitability over the long term, and we remain enthusiastic about the market we address.
"Our 2009 financial guidance reflects sales and marketing expansion in China resulting from continued performance at all of our business units, especially at Sunstone, and reflects operational synergies resulting from acquisitions we completed over the past eighteen months. In 2009, we expect all of our business units to be profitable, which will mark a significant milestone in the Company's development," concluded Gao.
The Company will hold a conference call at 5:00 pm ET on May 18, 2009 to discuss first quarter 2009 results. Listeners may access the call by dialing 1-888-679-8034 or +1-617-213-4847 for international callers, access code: 95397072. Preregistration and a webcast will also be available through the Company's website at http://www.bmpsunstone.com . A replay of the call will be available through May 28, 2009. Listeners may access the replay by dialing 1-888-286-8010 or +1-617-801-6888 for international callers, access code: 95991592.
About BMP Sunstone Corporation
BMP Sunstone Corporation is a specialty pharmaceutical company that is building a proprietary portfolio of branded pharmaceutical and healthcare products in China. Currently this portfolio includes eight products under exclusive multi-year licenses for China, primarily focused on women's health and pediatrics. The Company also owns Sunstone Pharmaceutical Co. Ltd., which manufactures leading pediatric and women's health products, including two of China's most recognized brands, "Hao Wawa" and "Confort," sold through approximately 120,000 pharmacies in China. The Company also provides pharmaceutical distribution services through its subsidiaries in Beijing and Shanghai, and through its affiliate, Guangzhou Pharmaceuticals Corp. The Company has its main office in Beijing, with a US 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 regarding the Company's competitive advantages, the impact of changes in China's healthcare industry on the Company's growth, the Company's expected financial performance in 2009 and the Company's expectations for each of its business units in 2009. 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 March 31, 2009 2008 Revenues: Third parties $35,521 $17,298 Related parties 3,742 791 Total Revenues 39,263 18,089 Cost of Goods Sold 18,605 10,368 Gross Margin 20,658 7,721 Sales and Marketing Expenses 13,511 5,961 General and Administration Expenses 3,929 3,156 Total Operating Expenses 17,440 9,117 Profit (Loss) From Operations 3,218 (1,396) Other Income (Expense): Interest Income 24 48 Interest (Expense) (1,417) (1,569) Debt Issuance Cost Amortization (128) (210) Equity Method Investment Income 17 675 Loss on Early Extinguishment of Debt (4,573) -- Gain on Derivatives 1,651 -- Total Other Income (Expense) (4,426) (1,056) Loss Before Provision For Income Taxes (1,208) (2,452) Provision For Income Taxes 782 347 Net Loss $(1,990) $(2,799) Basic and Fully-Diluted Loss Per Share $(0.05) $(0.08) Basic Weighted-average Shares Outstanding 40,765 35,096 Fully Diluted Weighted-average Shares Outstanding 43,066 36,598 BMP Sunstone Corporation and Subsidiaries Condensed Consolidated Balance Sheets ($ amounts in thousands) March 31, December 31, 2009 2008 Assets Current Assets: Cash and Cash Equivalents $21,251 $15,740 Restricted Cash 781 1,150 Notes Receivable 18,776 15,797 Accounts Receivable, net of allowance for doubtful accounts of $210 and $127 38,254 30,897 Inventory, net of allowance for obsolescence of $45 and $0 9,570 10,184 Due from Related Party 2,435 1,834 Other Receivables 2,189 2,168 VAT Receivable 989 921 Prepaid Expenses and Other Current Assets 5,181 6,247 Total Current Assets 99,426 84,938 Property and Equipment, net 23,999 22,840 Investment in Alliance BMP Limited 15,093 15,093 Investment in Shengda 2,938 -- Investments, at Cost 146 146 Goodwill 69,950 69,866 Other Assets 716 875 Land Use Rights, net of accumulated amortization 1,983 2,002 Intangible Assets, net of accumulated amortization 41,107 41,891 Total Assets $255,358 $237,651 Liabilities and Stockholders' Equity Current Liabilities: Notes Payable and Bank Borrowings, net of debt discounts $18,328 $33,591 Accounts Payable 28,544 27,482 Due to Related Parties 5,426 4,361 Deferred Revenues 128 128 Accrued Expenses 16,373 14,601 Total Current Liabilities 68,799 80,163 Long-Term Debt, including debt premium 25,297 -- Derivative Liability 894 Deferred Taxes 9,763 9,856 Total Liabilities 104,753 90,019 Stockholders' Equity: Common Stock, $.001 Par Value; 75,000,000 Shares Authorized as of March 31, 2009 and December 31, 2008; 41,500,409 and 40,246,410 Shares Issued and Outstanding as of March 31, 2009 and December 31, 2008, respectively 41 40 Additional Paid in Capital 164,850 160,864 Common Stock Warrants 9,780 9,049 Accumulated Deficit (33,032) (31,042) Accumulated Other Comprehensive Income 8,966 8,721 Total Stockholders' Equity 150,605 147,632 Total Liabilities and Stockholders' Equity $255,358 $237,651 BMP Sunstone Corporation and Subsidiaries Condensed Consolidated Statements of Operation ($ amounts, except per share amounts in thousands) Non GAAP For the Three months ended March 31, 2009 2008 Revenues: Third parties $35,521 $17,298 Related parties 3,742 791 Total Revenues 39,263 18,089 Cost of Goods Sold 18,490 9,699 Gross Margin 20,773 8,390 Sales and Marketing Expenses 12,785 5,544 General and Administration Expenses 3,325 2,526 Total Operating Expenses 16,110 8,070 Profit (Loss) From Operations 4,663 320 Other Income (Expense): Interest Income 24 48 Interest (Expense) (967) (802) Debt Issuance Cost Amortization -- -- Equity Method Investment Income 17 675 Loss on Early Extinguishment of Debt -- -- Gain on Derivatives -- -- Total Other Income (Expense) (926) (79) Profit Before Provision For Income Taxes 3,737 241 Provision For Income Taxes 782 347 Net Profit (Loss) $2,955 $(106) Basic Profit (Loss) Per Share $0.07 $0.00 Fully Diluted Profit (Loss) Per Share $0.07 $0.00 Basic Weighted-average Shares Outstanding 40,765 35,096 Fully Diluted Weighted-average Shares Outstanding 43,066 36,598 BMP Sunstone Corporation and Subsidiaries Non GAAP Reconciliations ($ amounts, except per share in thousands) Three Months Ended March 31, 2009 2008 GAAP Gross Profit $20,658 $7,721 Amortization Related to Acquisition 115 669 Non GAAP Gross Profit $20,773 $8,390 Three Months Ended March 31, 2009 2008 GAAP Operating Income (Loss) $3,218 $(1,396) Stock Based Compensation 585 563 Amortization Related to Acquisitions 860 1,153 Non GAAP Operating Income $4,663 $320 Three Months Ended March 31, 2009 2008 GAAP Net Loss $(1,990) $(2,799) GAAP EPS $(0.05) $(0.08) Stock Based Compensation 585 563 Debt Amortization and Issuance Cost 578 977 Amortization Related to Acquisitions 860 1,153 Loss on Early Extinguishment of Debt 4,573 -- Gain on Derivatives (1,651) -- Non GAAP Net Income (Loss) $2,955 $(106) Non GAAP EPS $0.07 $0.00 BMP Sunstone Corporation and Subsidiaries Adjusted EBITDA Reconciliation ($ amounts in thousands) For the Three Months Ended March 31, 2009 2008 Net Loss $(1,990) $(2,799) Net Loss Reconciliation to Adjusted EBITDA: Interest expense, net 943 754 Income taxes 782 347 Depreciation 522 257 Amortization of intangibles and fair value of inventory increase 860 1,103 Loss on Early Extinguishment of Debt 4,573 -- Gain on derivatives (1,651) -- Amortization of debt discount and debt issuance costs 577 977 EBITDA $4,616 $639
|SOURCE BMP Sunstone Corporation|
Copyright©2009 PR Newswire.
All rights reserved