NEW YORK, N.Y., Feb. 17, 2009 (GLOBE NEWSWIRE) -- Tongli Pharmaceuticals (OTCBB:TGLP), a pharmaceutical company specializing in the development, manufacture, and commercialization in the People's Republic of China of a wide range of prescription and over the counter ("OTC") pharmaceutical products based on principles of traditional Chinese medicine, today announced financial results for the third quarter ended December 31, 2008.
Financial Results
Revenue in the third quarter of fiscal year 2009 increased 290% year over year to $1.75 million from $0.45 million, and revenues in the nine months ended December 31, 2008 increased 314% year over year to $5.07 million from $1.22 million, reflecting greater demand for Tongli products and increased penetration into new markets.
Gross profit in the third quarter of fiscal year 2009 was $0.83 million, up from $0.27 million in the same period of the prior year. Gross margin was approximately 47.4%, compared to 59.7% in the same period of the prior year, mainly due to a mix shift as well as increasing raw material costs. Gross profit in the nine months ended December 31, 2008 was $2.24 million, up from $0.60 million in the prior year. Gross margin was approximately 44.3% for the nine months, compared to 48.8% in the same period of the prior year.
For the third quarter of fiscal year 2009, operating expenses were $0.32 million or 18.3% of revenue, compared to $0.13 million or 28.5% of revenue in the comparable period of the prior year. For the nine months ended December 31, 2008, operating expenses were $0.76 million or 15.0% of sales, compared to $0.36 million or 29.3% of sales in the comparable period of the prior year. The increase in operating expenses on an absolute dollar basis was primarily due to the increase in salaries resulting from additional personnel needed to support our growth and increased advertising expenses. Operating income increased 264% to $0.51 million from $0.14 million in the third quarter of fiscal 2009 and increased 523% to $1.49 million in the nine months ended December 31, 2008, as compared to $0.24 million in the same period in fiscal year 2008.
Net income for the third quarter of fiscal year 2009 increased 164% to $0.54 million or $0.05 per diluted share, compared to $0.20 million or $0.02 per diluted share, in the same period of the prior year. Net income for the nine months ended December 31, 2008 increased 505% to $1.53 million, or $0.15 per diluted share, compared to $0.25 million or $0.03 per diluted share, in the same period of the prior year.
Mr. Mingli Yao, founder and CEO of Tongli, commented: "We are continuing to grow rapidly in spite of challenging market conditions. During this reporting period we have filled key management positions, most notably hiring a new CFO with broad financial experience in the United States. Consumers continue to purchase our products, and we are actively looking for additional new products to add to our distribution pipeline."
About Tongli Pharmaceuticals
Tongli Pharmaceuticals (USA), Inc., through its subsidiary, Harbin Tianmu Pharmaceutical Co., Ltd., manufactures and markets pharmaceutical and healthcare products in the People's Republic of China. The company, formerly known as American Tony Pharmaceutical, Inc., is based in New York, New York.
Safe Harbor Statement
Statements made in this press release are forward looking and are made pursuant to the safe harbor provisions of the Securities Litigation Reform Act of 1995. Such statements involve risks and uncertainties that may cause actual results to differ materially from those set forth in these statements. The economic, competitive, governmental, technological and other factors identified in the Company's filings with the Securities and Exchange Commission, including the Form 10-Q for the quarter ended December 31, 2008, may cause actual results or events to differ materially from those described in the forward-looking statements in this press release. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether because of new information, future events, or otherwise.
TONGLI PHARMACEUTICALS (USA), INC.
CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
DECEMBER 31, MARCH 31,
2008 2008
----------- -----------
(Unaudited)
ASSETS
CURRENT ASSETS:
Cash $ 45,928 $ 130,630
Trade accounts receivable, net 140,445 2,470
Inventories 58,254 11,172
Prepaid expenses 38,429 --
Refundable deposits -- 405,643
Advances to suppliers 1,263,863 678,654
----------- -----------
TOTAL CURRENT ASSETS 1,546,919 1,228,569
PROPERTY AND EQUIPMENT, NET 7,142,316 7,813,779
CONTRACT DEPOSIT 1,025,650 --
----------- -----------
TOTAL ASSETS $ 9,714,885 $ 9,042,348
=========== ===========
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Note payable - bank $ 1,009,349 $ 995,168
Accounts payable 104,201 959,382
Due to related parties 987,493 819,620
Accrued expenses and other sundry current
liabilities 262,009 90,893
----------- -----------
TOTAL CURRENT LIABILITIES 2,363,052 2,865,063
----------- -----------
COMMITMENTS AND CONTINGENCIES
SHAREHOLDERS' EQUITY:
Preferred stock, $0.001 par value,
Authorized 1,000,000 shares; none issued -- --
Common stock, $0.001 par value, Authorized
200,000,000 shares Issued and
outstanding - 10,033,216 shares and
9,963,216, respectively 10,033 9,963
Additional paid-in capital 6,585,093 7,092,663
Accumulated other comprehensive income 1,110,112 955,288
Accumulated deficit (353,405) (1,880,629)
----------- -----------
TOTAL SHAREHOLDERS EQUITY 7,351,833 6,177,285
----------- -----------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 9,714,885 $ 9,042,348
=========== ===========
TONGLI PHARMACEUTICALS (USA), INC.
CONSOLIDATED STATEMENTS OF OPERATIONS AND OTHER COMPREHENSIVE INCOME
(UNAUDITED)
FOR THE THREE MONTHS FOR THE NINE MONTHS
ENDED DECEMBER 31, ENDED DECEMBER 31,
----------------------- -----------------------
2008 2007 2008 2007
----------- ----------- ----------- -----------
REVENUE $ 1,754,581 $ 449,660 $ 5,065,291 $ 1,223,234
COST OF SALES,
including
depreciation and
amortization of
$37,909, $9,348,
$123,810 and
$37,117,
respectively 923,525 181,423 2,820,484 626,147
----------- ----------- ----------- -----------
GROSS PROFIT 831,056 268,237 2,244,807 597,087
----------- ----------- ----------- -----------
OPERATING EXPENSES
General and
administrative 148,536 57,675 453,132 135,423
Research and
development 16,978 -- 27,153 --
Depreciation expense 49,896 68,407 135,051 206,611
Selling expense 106,285 2,180 142,473 16,406
----------- ----------- ----------- -----------
TOTAL OPERATING
EXPENSES 321,695 128,262 757,809 358,440
----------- ----------- ----------- -----------
OPERATING INCOME 509,361 139,975 1,486,998 238,647
OTHER EXPENSE
(INCOME)
Interest expense 44,079 29,798 130,996 78,805
Rental income (69,922) (92,510) (171,222) (92,510)
----------- ----------- ----------- -----------
NET INCOME 535,204 202,687 1,527,224 252,352
OTHER COMPREHENSIVE
INCOME
Foreign currency
translation
adjustment 943 160,205 154,824 305,108
----------- ----------- ----------- -----------
COMPREHENSIVE INCOME $ 536,147 $ 362,892 $ 1,682,048 $ 557,460
=========== =========== =========== ===========
BASIC AND DILUTED
INCOME PER SHARE $ 0.05 $ 0.02 $ 0.15 $ 0.03
=========== =========== =========== ===========
BASIC AND DILUTED
WEIGHTED AVERAGE
SHARES OUTSTANDING 10,033,216 9,963,216 10,033,216 9,963,216
=========== =========== =========== ===========