Imperial Ginseng Products Ltd. Reports 2nd Quarter 2004 Fiscal Year Results
-FANTASTIC QUARTER. BOOK VALUE OF 63 CENTS
VANCOUVER, BRITISH COLUMBIA--For the three and six-month periods
ended on December 31, 2003, Imperial Ginseng Products Ltd. (the
"Company") reports revenues of $3.7 million and $3.8 million,
respectively, and net income of $2.7 million or $0.15 per share
and $2.8 million or $0.10 per share, respectively. This compares
to revenues of $3.6 million and $4.4 million, a net income of
$0.4 million or $0.03 loss per share and $0.7 million or $0.08
loss per share, respectively, for the same periods in the prior
year. Comparative figures for revenue, net income and net income
(loss) per share are as follows:
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Three months Three months Six months Six months
ended ended ended ended
December 31, December 31, December 31, December 31,
2003 2002 2003 2002
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Revenue $ 3.7 $ 3.6 $ 3.8 $ 4.4
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Cost of sales 1.3 2.8 1.3 3.5
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Gross profit 2.4 0.8 2.5 0.9
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G & A expenses 0.4 0.4 0.6 0.6
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Gain on settlements
of debt 0.7 - 0.9 0.4
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Net income $ 2.7 $ 0.4 $ 2.8 $ 0.7
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Weighted
average shares
outstanding 12,495,797 11,241,352 12,495,797 11,241,352
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Net income
(loss) per share $ 0.15 $(0.03) $ 0.10 $(0.08)
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/T/
By the end of the second quarter of fiscal 2004, which ended on
December 31, 2003, the Company had completed virtually all its
fiscal 2004 ginseng planting, root harvesting and processing
activities. The Company harvested 145 acres of ginseng with total
production of 363,688 pounds, compared to a harvest of 132 acres
with a total production of 335,169 pounds in the prior year. To
complete the harvest of the Company's BC acreage, the Company
also plans to harvest the remaining 12 acres of its BC ginseng
gardens in the spring of 2004.
Sales activities were slower compared to the same period in the
prior year. As at December 31, 2003, only approximately 47% of
the root had been sold, compared to approximately 69% of the root
sold during the same period in the prior year. Despite the lower
volume sold, due to an increase in the ginseng root prices, the
Company still reported $3.7 million sales revenue in the second
quarter of fiscal 2004, compared to $3.6 million sales revenue
reported in the same quarter of fiscal 2003.
The Company's gross margin increased to $2.4 million and $2.5
million for the three and six-month periods ended on December 31,
2003, from $0.8 million and $0.9 million for the three and
six-month period ended in the prior year. The significant margin
increase in fiscal 2004 was due to prior year's write offs of the
crop cost of the Company's BC operations combined.
Preferred Share Restructuring and Listing
The Board of Directors of the Company approved a restructuring of
the Company's outstanding Class "A" Preference Shares. The
Company has entered into a restructuring and listing services
agreement, subject to regulatory approval, between the Company
and a management company with directors in common to undertake
all necessary steps to restructure its Class "A" Preference
Shares into Convertible Preference Shares and obtain a TSX
Venture listing of the Company's Convertible Preference Shares.
The management company is to be paid a one-time success fee of
2.5% of the total value of preferred shares restructured and
listed on the TSX Venture Exchange, net of applicable fees
incurred for legal, accounting, taxation, and advisory services
paid directly by the Company. The management company has agreed
to accept common shares of the Company issued at a price of $0.11
per share for up to 80% of the aggregate amount of the
restructuring fee as full consideration for services rendered.
This press release may contain forward-looking statements that
reflect the Company's current expectation regarding future
events. The forward-looking statements involve risks and
uncertainties. Actual events could differ materially from those
projected herein and depend on a number of factors including, but
not limited to the success of the Company's horticultural
operations and the strength of the economies and currencies of
Asian countries. Investors should consult the Company's ongoing
quarterly filings, annual reports and Form 20-F for additional
information on risks and uncertainties relating to the
forward-looking statements. The corporation disclaims any
obligations to update these forward-looking statements.
ON BEHALF OF THE BOARD OF DIRECTORS OF IMPERIAL GINSENG PRODUCTS
LTD.
James S. Chang, MA, MBA, CPA, President and Chief Executive
Officer
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FOR FURTHER INFORMATION PLEASE CONTACT:
Imperial Ginseng Products Ltd.
James S. Chang, MA, MBA, CPA
President and Chief Executive Officer
(604) 689-8863
(604) 689-8892 (FAX)
Website: www.inflazyme.com
The TSX Venture Exchange has not reviewed and does not accept
Responsibility for the adequacy or accuracy of this release. |
