China Jo-Jo Drugstores, Inc. Reports Unaudited Consolidated Earnings Results for the Third Quarter and Nine Months Ended December 31, 2011; Provides Sales Guidance for the Year 2012
February 14, 2012 at 06:00 am EST
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China Jo-Jo Drugstores, Inc. reported unaudited consolidated earnings results for the third quarter and nine months ended December 31, 2011. For the quarter, the company reported that its revenue increased 42.1% to $25.64 million from $18.04 million for the three months ended December 31, 2010, primarily as a result of wholesale revenue from Zhejiang Jiuxin Medicine Co. Ltd., which was acquired in August 2011, and sales from new stores opened since December 31, 2010, offset by same-store sales decrease. Same-store sales decreased by $1.87 million, or 10.5%, period over period, mainly as a result of shifting certain non-retail sales from Hangzhou Jiuzhou Grand Pharmacy Chain Co. Ltd., which operates most of the company's pharmacies, to Jiuxin Medicine. Income from operations decreased 22.1% to $2.15 million. Net income attributable to controlling interest decreased 29.7% to $1.57 million or $0.12 per basic and diluted share compared to net income attributable to controlling interest of $2.24 million or $0.17 per basic and diluted share a year ago. Income before income taxes was $2.19 million compared to $3.00 million a year ago.
For the nine months, revenue increased 41.6% to $69.30 million from $48.93 million for the nine months ended December 31, 2010, primarily as a result of same-store sales growth, sales from new stores opened since December 31, 2010, and wholesale revenue from Jiuxin Medicine. Same-store sales increased by $4.50 million, or 9.2 %, period over period, mainly from sales of pharmaceutical products covered by government-sponsored medical insurance programs. Revenue also increased from operating additional new store locations. Income from operations increased 6.6% to $8.79 million from $8.25 million a year ago. Net income attributable to controlling interest increased 7.2% to $6.45 million or $0.48 per basic and diluted share compared to net income attributable to controlling interest of $6.02 million or $0.46 per basic and diluted share a year ago. Net cash provided by operating activities was $17.68 million compared to net cash used in operating activities of $7.09 million a year ago. Payments and advance on property and equipment purchase was $11.73 million compared to $2.10 million a year ago. Income before income taxes was $9.13 million compared to $8.41 million a year ago.
The company anticipates that its overall revenue will continue to increase in the year 2012 as it opens additional stores and its maturing stores are able to accept government insurance.
China Jo-Jo Drugstores Inc, formerly China Jo-Jo Drugstores Holdings Inc, is a China-based retailer and distributor of pharmaceutical and other healthcare products. The Company operates in four business segments. The Retail Drugstores segment sells prescription and over the counter (OTC) medicines, traditional Chinese medicine (TCM), dietary supplements, medical devices, and sundry items to retail customers. The Online Pharmacy segment sells OTC drugs, dietary supplements, medical devices and sundry items through its own and third-party platforms. The Wholesale Business segment includes supplying the Company's own retail drugstores and selling them to other drug vendors and hospitals. The Farming and Selling Herbs segment cultivates selected herbs for sales to other drug vendors.
China Jo-Jo Drugstores, Inc. Reports Unaudited Consolidated Earnings Results for the Third Quarter and Nine Months Ended December 31, 2011; Provides Sales Guidance for the Year 2012