American Oriental Bioengineering Reports Fourth Quarter and Full Year 2006 Financial Results
Monday March 12, 4:02 pm ET
- Revenue Increased 108.7% to $41.3 Million in 4Q06 and 101.3% to $110.2 Million in FY06 -
- 4Q06 Net Income Increased 161.1% to $10.9 Million, or $0.17 per Diluted Share -
- FY06 Net Income Increased 117.5% to $29.2 Million, or $0.46 per Diluted Share -
- Company Provides Financial Outlook for 1Q07 and FY07 -
NEW YORK, March 12 /PRNewswire-FirstCall/ -- American Oriental Bioengineering, Inc. (NYSE: AOB - News), a leading manufacturer and distributor of plant-based pharmaceutical and nutraceutical products, today announced financial results for the fourth quarter and fiscal year ended December 31, 2006.
ADVERTISEMENT
Revenue for the fourth quarter of 2006 increased 108.7% to $41.3 million from $19.8 million in the fourth quarter of 2005. Revenue growth reflects continued demand for the Company's leading PBP and PBN products, as well as a $12.7 million contribution from the GLP acquisition. Revenue from PBP products increased 159.2% to $31.5 million from $12.1 million in the prior year's fourth quarter, driven by increased demand for Shuanghuanglian Injection Powder, Cease Enuresis Soft Gel and UrinStopper Patch. Revenue from PBN products increased 28.4% to $9.8 million from $7.6 million from the fourth quarter of 2005, due to increased demand for the Company's Protein Peptide products.
Gross profit in the fourth quarter of 2006 increased 116.0% to $27.2 million from $12.6 million in the fourth quarter of 2005. Gross margin increased 220 basis points to 65.9% from 63.7% in the prior year's period. The increase in gross profit was a result of higher sales, improved gross margins and operating efficiencies across PBP and PBN businesses.
Operating expenses in the fourth quarter increased 112.6% to $13.6 million compared to $6.4 million in the prior year period. This increase was primarily due to increased marketing materials, payroll and shipping expenses commensurate with sales growth. Additionally, the Company continued to increase advertising expenditure as it invests in brand strength, particularly related to products acquired with the GLP business. Operating income for the fourth quarter increased 119.6% to $13.6 million from $6.2 million in the fourth quarter of 2005. Operating margin as a percent of sales in the fourth quarter increased 170 basis points to 33.1% compared to 31.4% in the prior year period.
Net Income for the fourth quarter of 2006 increased 161.1% to $10.9 million, or $0.17 per diluted share, compared to $4.2 million, or $0.10 per diluted share, in the prior year's period.
Fiscal 2006 Financial Results
Revenue for fiscal 2006 surpassed $100 million in sales, increasing 101.3% to $110.2 million from $54.7 million in 2005. Net Income for 2006 increased 117.5% to $29.2 million, or $0.46 per diluted share, compared to $13.4 million, or $0.31 per diluted share, in the prior year.
Mr. Tony Liu, Chairman and Chief Executive Officer of American Oriental Bioengineering commented, "We are pleased to report another strong quarterly and fiscal year performance. Revenue exceeded $41 million in the fourth quarter and exceeded $110 million for the year reflecting continued strong growth in both PBP and PBN product categories. In 2006 we focused on a number of core strategic initiatives including improving the breadth and quality of our product portfolio, penetrating new markets and rationalizing our administrative, manufacturing and distribution cost structures. We achieved success in these areas through accretive acquisitions and through a program of continuous internal efficiency improvements."
Fiscal 2007 Financial Update
For the first quarter of fiscal 2007, the company anticipates revenue to be in the range of $24 to $25 million and anticipates diluted earnings per share of approximately $0.10. This is based on a diluted share count of approximately 66.5 million shares outstanding.
For the 2007 fiscal year, the Company anticipates revenue to be in the range of $143-$147 million. This guidance does not account for any potential acquisitions in 2007.
Mr. Liu concluded, "Moving into 2007, we intend to continue to market our leading brands, develop new products and line extensions, further expand our channels of distribution, identify further cost savings throughout our business and pursue acquisitions that will be complimentary to our current business. We are committed to remaining a leader and innovator in the area of women's health and believe our initiatives in 2007 will continue to enhance our performance and expand our presence in the marketplace. We are energized with our opportunities and will continue to work aggressively to maximize return for our shareholders."
The Company will conduct a conference call to discuss the fourth quarter and 2006 full year results today, Monday, March 12, 2007 at 4:30 p.m. ET. Listeners may access the call by dialing #800-817-4887 or #913-981-4913 for international callers. A replay of the call will be available through March 19, 2007. Listeners may access the replay by dialing #800-203-1112 or #719- 457-0820 for international callers, passcode 1894285. A live webcast of the call will be broadcast at www.viavid.net.
About American Oriental Bioengineering Inc.
American Oriental Bioengineering Inc. (AOB) is engaged in the development and production of plant-based pharmaceutical products and plant-based nutraceutical products widely distributed throughout China. For more information, visit bioaobo.com. |
