Shiner International, Inc. (OTCQB: BEST) ("Shiner" or the "Company"), an emerging global supplier of packaging solutions for food, tobacco, and consumer products, today announced its financial results for the quarter ended September 30, 2012.
Revenues for the three months ended September 30, 2012 decreased $1.9 million (or 10.2%), to $16.7 million compared to $18.6 million for the corresponding period in 2011. The decrease was primarily attributable to decreased revenues from coated film, color printing, advanced film and water-based latex, which was partially offset by increase in revenues generated from BOPP tobacco. For the three months ended September 30, 2012, revenue from coated film revenue decreased $3.2 million (or 46.4%) to $3.7 million from $6.9 million for the corresponding period in 2011, and sales from color printing decreased $0.4 million (or 28.7%) to $1.0 million from $1.4 million for the corresponding period in 2011. For the three months ended September 30, 2012, revenue from BOPP tobacco increased $3.2 million (or 45.0%) to $10.3 million from $7.1 million for the corresponding period in 2011; revenue from advanced film decreased $1.4 million (or 46.0%) to $1.6 million from $3.0 million for the corresponding period in 2011; and revenue from water-based latex decreased $0.1 million (or 98.6%) to $0.01 million from $0.1 million for the corresponding period in 2011.
Shiner’s gross profit for the three months ended September 30, 2012 was $1.4 million, a profit margin of 8.7%, a decrease of 2.7% from 11.4% for the corresponding period in 2011. The decrease in profit margin was primarily a consequence of an increase in labor costs and depreciation of new property.
Operating loss for the three months ended September 30, 2012 was $3.2 million, compared to operating income of $0.3 million for the corresponding quarter ended September 30, 2011. Selling, general and administrative expenses for the three months ended September 30, 2012 increased by 40.6%, or $0.7 million, to $2.5 million in 2012, compared to $1.8 million for the corresponding period in 2011. General and administrative expenses increased during the 2012 period due to a $0.3 million increase in research and development expenditures and a $0.7 million increase in bad debt allowance, as compared to 2011. There was also a $2.1 million increase in loss on sale and write off of assets during the 2012 period.
Shiner reported net loss of $3.5 million for the three months ended September 30, 2012, compared to a net income of $0.4 million in the corresponding period of 2011. Earnings per share for the quarter were ($0.13), compared to earnings of $0.01 per share for the corresponding period of 2011.
Nine Months Financial Results
Revenue for the first nine months of fiscal year 2012 decreased $1.9 million (or 3.6%), to $50.5 million, compared to $52.4 million in the corresponding period a year ago. Gross profit for the nine months ended September 30, 2012 was $4.1 million, a profit margin of 8.1%, a decrease of 5.3% from 13.4% for the corresponding period in 2011. Operating loss was $4.8 million, down from an operating income of $2.8 million in the first nine months of fiscal year 2011. The Company saw a net loss of $5.5 million for the nine months ended September 30, 2012, representing a decrease of $7.7 million (or 351.4%) from a net income of $2.2 million for the corresponding period in 2011. Fully diluted loss per share was ($0.20), compared to fully diluted income per share of $0.08 for the first nine months of fiscal year 2011.
Financial Condition
As of September 30, 2012, the Company had $3.6 million in cash and equivalents on hand, $11.1 million in long-term debt, and working capital of $6.9 million. Stockholders’ equity stood at $36.5 million, compared to $41.7 million as of December 31, 2011. Net cash used in operating activities for the nine months ended September 30, 2012 was $1.2 million, an increase of $3.4 million, compared to net cash flow used by operating activities of $21,869 for the corresponding period in 2011.
About Shiner International, Inc.,
Shiner International, Inc. is engaged in the research and development, manufacture and sale of flexible packaging material and advanced film. Its products include coated packaging film, shrink-wrap film, common packaging film, anti-counterfeit laser holographic film and color-printed packaging materials. The Company’s products are used by manufacturers in the food and consumer products industry to preserve the texture, flavor, hygiene, and convenience and safety of their products. The Company was founded in 1990 and is headquartered in Haikou, China. Approximately 80% of Shiner’s current customers are located in China, with the remainder spanning Southeast Asia, Europe, the Middle East and North America. Shiner holds 20 patents on products and production equipment, and has an additional 9 patent applications pending. The Company’s flexible packaging meets U.S. FDA requirements, as well as the requirements for food packaging sold in the EU. Shiner’s product manufacturing process is certified under ISO 9001:2000. Additional information on Shiner is available at http://www.shinerinc.com.
Safe Harbor Statement
All statements in this press release that are not historical are forward- looking statements made pursuant to the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. You are cautioned not to place undue reliance on any forward-looking statements in this press release as they reflect Shiner International, Inc.’s current expectations with respect to future events and are subject to risks and uncertainties that may cause actual results to differ materially from those contemplated. Potential risks and uncertainties include, but are not limited to, the risks described in Shiner’s filings with the Securities and Exchange Commission. The information contained in this press release is made as of the date of the press release, even if subsequently made available by Shiner on its website or otherwise.
 
SOURCE: sacbee.com
 
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