BIOSTAR PHARMACEUTICALS, INC. REPORTS 2012 RESULTS
XIANYANG, China, April 15, 2013 – Biostar Pharmaceuticals, Inc. (NASDAQ GM: BSPM) ("Biostar" or "the Company"), a PRC-based manufacturer and marketer of pharmaceutical and health supplement products in China for a variety of diseases and conditions, today announced financial results for the full year ended December 31, 2012.
SUMMARY FINANCIALS
Full Year 2012 Results (audited) |
|||
|
2012 |
2011 |
CHANGE |
Net Sales |
$49.3 million |
$92.0 million |
-46.4% |
Gross Profit |
$29.9 million |
$64.4 million |
-53.6% |
Net Income |
-$20.0 million |
$12.2 million |
-263.9% |
EPS (Basic and Diluted) |
-$2.09 |
$1.31 |
-259.5% |
For the twelve months ended December 31, 2012, revenue decreased approximately 46.4% to $49.3 million compared to 2011. Sales of Aoxing Pharmaceutical's capsule products were affected by the suspension of sale and negative publicity associated with Chinese SFDA's investigation of several capsule manufacturers which used industrial gelatin with high chromium content in their products (the "Capsule Incident"). Net sales of capsule products decreased by $51.3 million or 63.2%. The sales of other Aoxing Pharmaceutical products were also affected by the negative publicity. Net sales of these products decreased by $1.5 million or 15.1%. The Company acquired Shaanxi Weinan Huaren Pharmaceuticals, Ltd. ("Shaanxi Weinan") in the fourth quarter in 2011, and continued the sales of Shaanxi Weinan's then existing products. These products accounted for $7.4 million or 15.1% of total net sales in 2012. The Company discontinued one product due to low sales volume and demand. During 2012, the Company reintroduced six of Shaanxi Weinan's previous products, which accounted for $0.7 million or 1.4% of total net sales in 2012.
Balance Sheet and Cash Flow
Cash and cash equivalents totaled $1.8 million on December 31, 2012, as compared to $17.0 million on December 31, 2011. Accounts receivable balance was approximately $21.9 million on December 31, 2012, versus approximately $35.0 million on December 31, 2011. The Company had total assets of $70.5 million versus total liabilities of $12.7 million on December 31, 2012. Working capital on December 31, 2012 was $29.3 million, as compared to $53.8 million on December 31, 2011.
For the fiscal year of 2012, the Company used $3.6 million in cash in operations and spent $17.3 million in investing activities.
Conference Call
The Company will host a conference call to discuss the 2012 year-end financial results on Monday, April 15, 2013 at 9:30 a.m. ET. Interested parties may access the call by dialing + 1-480-629-9712. The conference ID is 4609975. It is advisable to dial in approximately 5-10 minutes prior to the start of the call. A playback will be available through April 22, 2013. To listen, please call +1-858-384-5517 and utilize the pass code 4609975 for the replay. This call is being web cast by ViaVid Broadcasting and can be accessed at the following link: http://public.viavid.com/index.php?id=104000.
About Biostar Pharmaceuticals, Inc.
Biostar Pharmaceuticals, Inc., through its wholly owned subsidiary and controlled affiliate in China, develops, manufactures and markets pharmaceutical and health supplement products for a variety of diseases and conditions. The Company's most popular product is its Xin Aoxing Oleanolic Acid Capsule, an over-the-counter ("OTC") medicine for chronic hepatitis B, a disease affecting approximately 10% of the Chinese population. For more information please visit: http://www.biostarpharmaceuticals.com.
Safe Harbor Relating to the Forward-Looking Statements
Certain statements in this release concerning our future growth prospects are forward-looking statements, within the meaning of Section 27A of the U.S. Securities Act of 1933, as amended, and Section 21E of the U.S. Securities Exchange Act of 1934, as amended, which involve a number of risks and uncertainties that could cause actual results to differ materially from those in such forward-looking statements. The company uses words and phrases such as "guidance," "forecasted," "projects," "is expected," "remain confident," "will" and similar expressions to identify forward-looking statements in this press release, including forward-looking statements. Undue reliance should not be placed on forward-looking information. Forward-looking information is based on current expectations, estimates and projections that involve a number of risks, which could cause actual results to vary and in some instances to differ materially from those anticipated by Biostar and described in the forward-looking information contained in this news release. The risks and uncertainties relating to these statements include, but are not limited to, risks and uncertainties regarding the Company's ability to achieve the projected sales through the efforts of the call center, to complete the contemplated clinical trials and capitalize on such opportunities, the Company's ability to recover its sales and revenue for the gel capsule segment of its business, the state of consumer confidence and market demand or the Company's products, success of our investments, risks and uncertainties regarding fluctuations in earnings, our ability to sustain our previous levels of profitability including on account of our ability to manage growth, intense competition, wage increases in China, our ability to attract and retain highly skilled professionals, time and cost overruns on fixed-price, fixed-time frame contracts, client concentration, our ability to successfully complete and integrate potential acquisitions, withdrawal of governmental fiscal incentives, political instability and regional conflicts and legal restrictions on raising capital or acquiring companies outside China. Additional risks that could affect our future operating results are more fully described in our United States Securities and Exchange Commission filings including our most recent Annual Report on Form 10-K for the year ended December 31, 2011, and other subsequent filings. These filings are available at www.sec.gov. We may, from time to time, make additional written and oral forward-looking statements, including statements contained in our filings with the Securities and Exchange Commission and our reports to shareholders. We do not undertake to update any forward-looking statements that may be made from time to time by or on our behalf.
For more information contact:
Biostar Pharmaceuticals, Inc.
Ally Gong
Tel: +86-29-3368-6638
Email: [email protected]
Source: Biostar Pharmaceuticals, Inc.