PLYMOUTH MEETING, Pa., March 15 /PRNewswire-Asia-FirstCall/ -- BMP Sunstone Corporation (“BMP Sunstone” or the “Company”) today announced financial results for the fourth quarter and fiscal year ended December 31, 2009.
David Gao, Chief Executive Officer of BMP Sunstone, stated, “We achieved a record year in 2009 and we are proud of the progress we have made across our operating segments, all of which were profitable on an operating basis by the end of the year. Revenue growth and operating income performance were particularly strong in the back part of the year. As we enter 2010, we are focused on driving greater-than-industry growth with our diverse product portfolio, established distribution in many of China’s most important healthcare markets, and leading brands in pediatrics and women’s health.”
Fourth Quarter 2009 Financial Results
Revenue in the fourth quarter of 2009 increased 13.4% to $41.5 million from $36.6 million in the fourth quarter of 2008, reflecting increased demand for the Company’s manufactured products and licensed products. The former increased by 20.7% to $25.6 million and the latter by 34.6% to $2.1 million, reflecting sales and marketing efforts of Propess, Anpo, Ferriprox and Galake compared to the prior year. Revenue from distribution was roughly flat on a year over year basis at $13.9 million, reflecting continued sales performance at Rongheng and from Wanwei’s major products.
Gross profit in the fourth quarter of 2009 increased 21.3% to $23.3 million from $19.2 million in the fourth quarter of 2008. Gross margin was 56.1% compared to 52.4% in the prior year period. Gross margin performance reflects increased sales of higher margin products from manufactured products and licensed products, which carried margins of 80.6% and 62.3% respectively.
The Company’s operating income improved significantly year over year to $4.0 million in the fourth quarter of 2009 compared to $1.8 million in the fourth quarter of 2008. Non-GAAP operating income was $5.5 million in the fourth quarter of 2009, compared to $3.5 million in the prior year period, further highlighting the significant increase in revenues contributed from acquired businesses in the year over year period.
Non-GAAP net income was $3.6 million, or $0.07 per diluted share, compared to $4.1 million, or $0.10 per diluted share, in the fourth quarter of 2008. On a GAAP basis, the Company reported net income of $2.0 million, or $0.04 per diluted share, compared to $1.4 million, or $0.03 per diluted share, in the fourth quarter of 2008. During the fourth quarter of 2008, the Company had a $1.4 million tax benefit reflecting the reduction in tax rate from 25% to 15% for 2008, 2009 and 2010, as a result of receiving hi-tech tax status.
Non-GAAP net income and earnings per share exclude stock based compensation expense, amortization related to acquisitions, amortization of debt discount and issuance cost, loss on early extinguishment of debt and gain on the embedded derivative value on convertible notes. Adjusted EBITDA is a non-GAAP measure which provides earnings before interest, taxes, depreciation and amortization and excludes loss on early extinguishment of debt and gain on the embedded derivative value on convertible notes. Please refer to the financial tables provided in this news release for a reconciliation of GAAP results to non-GAAP results for the three and twelve month periods ended December 31, 2008 and 2009.
Full Year 2009 Financial Results
Revenue in the fiscal year 2009 increased 27.9% to $146.9 million from $114.9 million in 2008, reflecting approximately $84.0 million in revenue from Sunstone, which was up 27.8% on a year over year basis. Revenue from distribution increased 27.7% to $55.8 million from $43.7 million in the year 2008. Revenue from licensed products increased 30.0% to $7.0 million from $5.4 million in 2008, reflecting sales and marketing efforts of Propess, Anpo, Ferriprox and Galake, compared to the prior year.
Gross profit increased 29.1% to $74.0 million from $57.3 million in 2008, and gross margin for the year was 50.4% compared to 49.9% in the prior year. Higher gross profit largely reflects revenue from the sales of the Company’s manufactured products, which yielded a gross margin of 77.8% in 2009.
The Company’s operating income improved significantly year over year to $8.4 million compared to $3.7 million in 2008. Operating expenses of $65.6 million reflect a 20.5% increase in sales and marketing expenses and a 28.4% increase in general and administrative expenses, commensurate with year over year growth in the business. Non-GAAP operating income reached $14.3 million in 2009 compared to $10.5 million in the prior year, further highlighting the significant increase in revenues contributed from acquired businesses in the year over year period.
Non-GAAP net income was $8.2 million, or $0.17 per diluted share, in 2009 compared to $7.2 million, or $0.18 per diluted share, in 2008. On a GAAP basis, the Company’s net loss improved to $2.0 million, a net loss of $0.05 per diluted share, from a net loss of $3.4 million, a net loss of $0.09 per diluted share, in 2008.
Balance Sheet
As of December 31, 2009, the Company had cash and cash equivalents of $21.5 million and notes receivable of $17.5 million, totaling $39.1 million. Notes receivables from customers for the settlement of trade receivable balances are guaranteed by established banks in China and have maturities of six months or less.
Financial Guidance
In 2010, revenue is anticipated to grow from $146.9 million for 2009 to $160 million - $170 million.
The Company expects adjusted EBITDA for the full year 2010 to reach $16 million - $17 million.
The Company expects non-GAAP net income for the full year 2010 to reach $9 million - $10 million.
Yanping Zhao Promoted to Chief Operating Officer
Today the Company announced Yanping Zhao has been promoted to Chief Operating Officer of BMP Sunstone. Ms. Zhao has served as the Corporate Vice President of BMP Sunstone since October 2007. Prior to joining BMP Sunstone in 2007, Ms. Zhao held various senior positions with Sino Biopharmaceutical Ltd. Ms Zhao has successfully grown BMP China’s operations and has played a critical role helping the Company achieve operational excellence at all business units as well as in the successful transition at Sunstone.
Conference Call
The Company will hold a conference call at 5:00 pm ET on March 15, 2010 to discuss its results. Listeners may access the call by dialing 1-888-679-8035 or 1-617-213-4848 for international callers, access code: 60008597. Pre-registration and a webcast will be available through the Company’s website at http://www.bmpsunstone.com . A replay of the call will be accessible through March 22, 2010 by dialing 1-888-286-8010 or 1-617-801-6888 for international callers, access code: 50833260.
About BMP Sunstone Corporation
BMP Sunstone Corporation (“BMP Sunstone” or the “Company”) is a specialty pharmaceutical company that is building a proprietary portfolio of branded pharmaceutical and healthcare products in China. Through Sunstone Pharmaceutical Co. Ltd., the Company manufactures leading pediatric and women’s health products, including two of China’s most recognized brands, “Hao Wawa” and “Confort,” sold throughout the country in approximately 120,000 pharmacies. The Company also markets a portfolio of products under exclusive multi-year licenses into China, primarily focused on women’s health and pediatrics, as well as provides pharmaceutical distribution services through subsidiaries in Beijing and Shanghai. BMP Sunstone’s main office is in Beijing, with a U.S. office in Plymouth Meeting, PA. For more information, please visit http://www.bmpsunstone.com .
Safe Harbor Statement
This news release contains forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995. Forward-looking statements include statements concerning plans, objectives, goals, strategies, future events or performance, and underlying assumptions and other statements that are other than statements of historical facts, including but not limited to statements about the Company’s strategic and market penetration strategies and the potential effects of the listing of the Company’s products on China’s National (Medical) Insurance Catalog. These statements are subject to uncertainties and risks including, but not limited to, operating performance, general financial, economic, and political conditions affecting the biotechnology and pharmaceutical industries and the Chinese pharmaceutical market, the ability to timely manufacture and distribute the Company’s products and other risks contained in reports filed by the Company with the Securities and Exchange Commission. In addition, the Company disclaims any obligation to update any forward-looking statements to reflect events or circumstances after the date hereof.
CONTACT: Ashley M. Ammon, +1-646-277-1227, or Christine Duan,
+1-203-682-8200, both of Integrated Corporate Relations, Inc. (Investor
Relations)
Web site: http://www.bmpsunstone.com/
