China Marine Food Group Limited Reports Consolidated Earnings Results for the Fourth Quarter and Full Year Ended December 31, 2011
March 27, 2012 at 04:05 pm EDT
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China Marine Food Group Limited reported consolidated earnings results for the fourth quarter and full year ended December 31, 2011. Total revenue in all segments including Mingxiang(R)-branded seafood snack foods, "Hi-Power" beverages and marine catch, for the quarter ended December 31, 2011 was $64.3 million, a 21.8% increase from $52.8 million in the prior year's period. Operating income in the fourth quarter of 2011 was $1.4 million, with operating margin of 2.2%, compared to $7.4 million and 14.0%, respectively in the prior year period. Excluding the $0.6 million non-cash amortization expense related to the "Hi-Power" acquisition and $0.6 million after-tax non-cash stock-based compensation expense, operating income was $2.6 million. Adjusted non-GAAP net income for the fourth quarter of 2011, excluding the non-cash amortization and after-tax stock-based compensation expenses of $1.2 million, was $2.3 million against $6.8 million for the same period a year ago. Adjusted earnings were $0.08 per share based on 29.7 million fully diluted shares against $0.24 for the same period a year ago.
Net sales for the twelve months ended December 31, 2011 were $143.9 million against $122.7 million, a 17.3% increase from the same period a year ago. Reported GAAP net income was $8.6 million for the twelve months ended December 31, 2011 while diluted EPS was $0.29 against net income of $21.1 million or $0.73 diluted per share for the same period a year ago. Excluding the $4.2 million of non-cash expenses, adjusted non-GAAP net income and diluted EPS were $12.8 million and $0.43, respectively. Net income attributable to company was $8.6 million against $21.1 million for the same period a year ago. Net cash used in operating activities was $8.4 million against $6.3 million for the same period a year ago. Purchase of property, plant and equipment was $36,717 against $233,121 million for the same period a year ago. Income from operations was $10.4 million against $25.3 million for the same period a year ago. Income before income taxes was $10.6 million against $4.5 million for the same period a year ago.
China Marine Food Group Ltd. is a food and beverage manufacturer. The Company operates as a seafood processor, a distributor of seafood products, as well as a wholesaler of fresh marine catch. The Company's dried and processed seafood products include dried prawns, dried squids, dried file fish, roasted prawns, shredded roasted squids, roasted squids, roasted file fish, roasted sea eels and other seafood items. Its dried processed seafood is primarily sold under the Mingxiang brand name. The dried processed seafood products are primarily sold to distributors in Fujian and Zhejiang provinces, who in turn distribute them to supermarkets and retailers, including convenient store chains across the provinces. The Company's frozen processed seafood products include frozen Japanese butter fish, frozen octopus and frozen squid rings. The products are sold directly to wholesalers within the People's Republic of China and overseas. It also offers Hi-Power branded algae-based soft drinks.