- Company to Hold Conference Call on Tuesday, May 12, 2015, at 8:30 AM ET
FUZHOU, China, May 11, 2015 /PRNewswire/ -- Pingtan Marine Enterprise Ltd. (Nasdaq: PME), ("Pingtan," or the "Company") a global fishing company based in the People's Republic of China (PRC), today announced its unaudited financial results the first quarter ended March 31, 2015.
Recent Significant Factors Affecting Pingtan's Results of Operation
As previously disclosed, the Indonesian government introduced a moratorium on issuing new fishing licenses and renewals so that the country's Ministry of Maritime Affairs and Fisheries ("MMAF") could monitor the operations of existing fleets and to fight illegal fishing activities. As a result, all licensed fishing vessels operating in the Indonesian waters have been informed by the Indonesian government to only operate within strict guidelines in order to avoid potential enforcement actions by the Indonesian Navy such as boat seizures. Pingtan currently operates 129 fishing vessels and 117 of these vessels operate in the Arafura Sea of Indonesia. To cooperate and remain in compliance with the Indonesian government's fishing license check procedures, in January 2015, the Company lowered its operation to approximately half of its normal level; and from February 2015, Pingtan temporarily ceased operations in Indonesian waters. Since the Company derives a majority of itsrevenue from this area, this temporary ban caused a significant drop in production. As a result, the Company's sales for the three months ended March 31, 2015 decreased significantly as compared to the three months ended March 31, 2014. The Indonesian government had previously expected the license check of fishing vessels to be completed by April 30, 2015. As of the date of this report, the license checking was still in process. While the Company believes that over the long-term the Indonesian government's anti-illegal fishing measures will be beneficial to fully licensed fishing companies such as PME, it cannot guarantee when fishing will resume in this area, and its financial condition and results of operation will continue to be materially impacted while this moratorium is in existence.
Mr. Xinrong Zhuo, Chairman and CEO of the Company, commented, "We were pleased with the operating results achieved in the first quarter of 2015 despite the anti-illegal fishing measures enacted by the Indonesia government. In compliance with the Indonesian government's guidelines, our fishing vessels operating in the Arafura Sea of Indonesia maintained minimum level of operation, which resulted in significant decreases in our harvest volume and sales during the quarter. However, we believe these temporary challenges will benefit fully licensed fishing companies such as Pingtan in the long term. While we are actively cooperating with the Indonesian Navy to accelerate the elimination of illegal fishing vessels from the waters, we continue to seek and establish new fishing territories and to further invest in our operations to maintain the Company's leading market position in China."
First Quarter 2015 Financial Highlights (all results are compared to prior year period)
- As a result of the above, revenue was $28.7 million compared to $65.6million.
- Gross profit was $11.5 million compared to $25.6 million, and gross margin was 39.9% compared to 39.0%, due to a decrease in unit selling price, due to different sales mix.
- Net income from the fishing business was $8.4 million, or $0.10 per basic and diluted share, compared to $23.4 million, or $0.30 per basic and diluted share.
|
First Quarter 2015 Selected Financial Highlights |
||
|
($ in millions, except per share data) |
Three Months ended March 31, |
|
|
2015 |
2014 |
|
|
Fishing Business |
||
|
Revenue |
$28.7 |
$65.6 |
|
Cost of Revenue |
$17.3 |
$40.0 |
|
Gross Profit |
$11.5 |
$25.6 |
|
Gross Profit Margin |
39.9% |
39.0% |
|
Net Income from Fishing Business |
$8.4 |
$23.4 |
|
Basic and Diluted Weighted Average |
79.1 |
79.1 |
|
EPS (in $) |
0.10 |
0.30 |
|
Balance Sheet Highlights |
||
|
($ in millions, except per share data) |
3/31/2015 |
12/31/2014 |
|
(Unaudited) |
(Audited) |
|
|
Cash and Cash Equivalents |
$67.4 |
$12.8 |
|
Total Current Assets |
134.2 |
105.9 |
|
Total Assets |
317.0 |
249.0 |
|
Total Current Liabilities |
55.4 |
61.1 |
|
Total Long-term Debt, net of current portion |
38.8 |
38.6 |
|
Total Liabilities |
94.2 |
99.8 |
|
Shareholders' Equity |
222.8 |
149.3 |
|
Total Liabilities and Shareholders' Equity |
317.0 |
249.0 |
|
Book Value Per Share (in $) |
2.82 |
$1.89 |
Consolidated Financial and Operating Review
Revenues
Revenues from the fishing business, sales of frozen fish and other marine catches for the three months ended March 31, 2015, were $28.7 million compared to $65.6 million for the same period in 2014. The decrease was primarily due to the decrease in average unit sale price from a different sales mix, as well as the Company's minimal operations in the Arafura Sea during the first quarter of 2015 in compliance with Indonesian government's efforts to combat illegal fishing in its waters, which resulted in decreased sales volumes.
Gross Margin
The Company's gross margin was 39.9% for the three months ended March 31, 2015, compared to 39.0% in the prior-year period. The slight increase was primarily due to the different sales mix with different gross profit margins.
Selling Expenses
Selling expenses were $0.7 million, or 2.4% of revenue, for the three months ended March 31, 2015, compared to $0.6 million, or 1.0% of revenue, in the prior-year period.
General & Administrative Expenses
For the three months ended March 31, 2015, general and administrative expenses were $1.4 million, or 5.0% of revenue, compared to $0.8 million, or 1.2% of revenue, in the prior-year period.
Net Income
Net income from the fishing business for the three months ended March 31, 2015, was $8.4 million, or $0.10 per basic and diluted share, compared to $23.4 million, or $0.30 per basic and diluted share, in the same period of 2014. The decrease was primarily due to the reasons described above.
Conference Call Details
Pingtan also announced that it will discuss financial results in a conference call on Tuesday, May 12, 2015, at 8:30 AM ET.
The dial-in numbers are:
Live Participant Dial In (Toll Free): 877-407-0310
Live Participant Dial In (International): 201-493-6786
To listen to the live webcast, please go to http://www.ptmarine.com and click on the conference call link at the top of the page, or go to: http://ptmarine.equisolvewebcast.com/q1-2015. This webcast will be archived and accessible through the Company's website for approximately 30 days following the call.
About Pingtan Marine
Pingtan is a global fishing company, engaging in ocean fishing through its wholly-owned subsidiary, Fujian Provincial Pingtan County Ocean Fishing Group Co., Ltd., or Pingtan Fishing. Pingtan Fishing primarily engages in ocean fishing with many of its self-owned vessels operating within the Indian Exclusive Economic Zone and the Arafura Sea of Indonesia. Pingtan Fishing is a growing fishing company and provider of high quality seafood in the PRC.
Business Risks and Forward-Looking Statements
This press release may contain forward-looking statements that are subject to the safe harbors created under the Securities Act of 1933 and the Securities Exchange Act of 1934. Readers are cautioned that actual results could differ materially from those expressed in any forward-looking statements. In addition, please refer to the risk factors contained in Pingtan's SEC filings available at www.sec.gov, including Pingtan's most recent Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and Definitive Proxy Statement. Readers are cautioned not to place undue reliance on any forward-looking statements, which speak only as of the date on which they are made. Pingtan undertakes no obligation to update or revise any forward-looking statements for any reason.
CONTACT:
Roy Yu
Chief Financial Officer
Pingtan Marine Enterprise Ltd.
Tel: +86 591 87271753
[email protected]
INVESTOR RELATIONS:
The Equity Group Inc.
Katherine Yao, Associate
Tel: +86 10 6587 6435
[email protected]
|
PINGTAN MARINE ENTERPRISE LTD. AND SUBSIDIARIES |
||||
|
For the Three Months Ended March 31, |
||||
|
2015 |
2014 |
|||
|
REVENUES |
$ |
28,732,824 |
$ |
65,582,952 |
|
COST OF REVENUES |
17,266,289 |
39,983,490 |
||
|
GROSS PROFIT |
11,466,535 |
25,599,462 |
||
|
OPERATING EXPENSES: |
||||
|
Selling |
705,520 |
670,951 |
||
|
General and administrative |
1,444,214 |
780,271 |
||
|
Total Operating Expenses |
2,149,734 |
1,451,222 |
||
|
INCOME FROM OPERATIONS |
9,316,801 |
24,148,240 |
||
|
OTHER INCOME (EXPENSE): |
||||
|
Interest income |
19,232 |
3,425 |
||
|
Interest expense |
(953,644) |
(1,132,423) |
||
|
Foreign currency transaction gain (loss) |
37,381 |
(154,784) |
||
|
Grant income |
- |
524,421 |
||
|
Loss on equity method investment |
(3,345) |
- |
||
|
Other expense |
(163) |
(163) |
||
|
Total Other Income (Expense), net |
(900,539) |
(759,524) |
||
|
INCOME BEFORE INCOME TAXES |
8,416,262 |
23,388,716 |
||
|
INCOME TAXES |
- |
- |
||
|
NET INCOME |
$ |
8,416,262 |
$ |
23,388,716 |
|
LESS: NET INCOME ATTRIBUTABLE TO THE NON-CONTROLLING INTEREST |
(193,015) |
- |
||
|
NET INCOME ATTRIBUTABLE TO OWNERS OF THE COMPANY |
$ |
8,223,247 |
$ |
23,388,716 |
|
COMPREHENSIVE INCOME: |
||||
|
NET INCOME |
8,416,262 |
23,388,716 |
||
|
OTHER COMPREHENSIVE INCOME (LOSS): |
||||
|
Unrealized foreign currency translation gain (loss) |
646,756 |
(1,299,601) |
||
|
|
$ |
9,063,018 |
$ |
22,089,115 |
|
|
387,343 |
- |
||
|
COMPREHENSIVE INCOME ATTRIBUTABLE TO OWNERS OF THE COMPANY |
$ |
8,675,675 |
$ |
22,089,115 |
|
NET INCOME PER ORDINARY SHARE ATTRIBUTABLE TO OWNERS OF THE COMPANY |
||||
|
Basic and diluted |
$ |
0.10 |
$ |
0.30 |
|
WEIGHTED AVERAGE ORDINARY SHARES OUTSTANDING: |
||||
|
Basic and diluted |
79,055,053 |
79,055,053 |
||
|
PINGTAN MARINE ENTERPRISE LTD. AND SUBSIDIARIES |
|||||||||||||
|
March 31, |
December 31, |
||||||||||||
|
(Unaudited) |
|||||||||||||
|
ASSETS |
|||||||||||||
|
CURRENT ASSETS: |
|||||||||||||
|
Cash |
$ |
67,379,943 |
$ |
12,752,272 |
|||||||||
|
Accounts receivable, net of allowance for doubtful accounts |
30,197,115 |
49,999,712 |
|||||||||||
|
Inventories |
4,883,958 |
12,123,405 |
|||||||||||
|
Prepaid expenses |
19,723 |
32,913 |
|||||||||||
|
Prepaid expenses - related parties |
17,539,794 |
7,319,975 |
|||||||||||
|
Deferred expenses - related parties |
559,615 |
1,029,114 |
|||||||||||
|
Other receivables |
3,483 |
22,656,232 |
|||||||||||
|
Other receivables - related parties |
13,586,289 |
- |
|||||||||||
|
Total Current Assets |
134,169,920 |
105,913,623 |
|||||||||||
|
OTHER ASSETS: |
|||||||||||||
|
Cost method investment |
3,437,495 |
3,421,031 |
|||||||||||
|
Equity method investment |
56,960,841 |
15,964,812 |
|||||||||||
|
Prepayment for long-term assets |
13,816,274 |
13,750,102 |
|||||||||||
|
Property, plant and equipment, net |
108,624,354 |
109,980,617 |
|||||||||||
|
Total Other Assets |
182,838,964 |
143,116,562 |
|||||||||||
|
Total Assets |
$ |
317,008,884 |
$ |
249,030,185 |
|||||||||
|
LIABILITIES AND SHAREHOLDERS' EQUITY |
|||||||||||||
|
CURRENT LIABILITIES: |
|||||||||||||
|
Accounts payable |
$ |
1,310,466 |
$ |
1,181,977 |
|||||||||
|
Accounts payable - related parties |
296,102 |
2,601,314 |
|||||||||||
|
Advances from customers |
9,348 |
164,724 |
|||||||||||
|
Short-term bank loans |
31,500,000 |
30,353,890 |
|||||||||||
|
Long-term bank loans - current portion |
12,424,089 |
18,868,616 |
|||||||||||
|
Accrued liabilities and other payables |
6,424,788 |
5,602,307 |
|||||||||||
|
Due to related parties |
3,473,355 |
2,373,352 |
|||||||||||
|
Total Current Liabilities |
55,438,148 |
61,146,180 |
|||||||||||
|
OTHER LIABILITIES: |
|||||||||||||
|
Long-term bank loans - non-current portion |
38,810,954 |
38,625,071 |
|||||||||||
|
Total Liabilities |
94,249,102 |
99,771,251 |
|||||||||||
|
SHAREHOLDERS' EQUITY: |
|||||||||||||
|
Equity attributable to owners of the company: |
|||||||||||||
|
Ordinary shares ($0.001 par value; 225,000,000 shares authorized; 79,055,053 |
|||||||||||||
|
shares issued and outstanding at March 31, 2015 and December 31, 2014) |
79,055 |
79,055 |
|||||||||||
|
Additional paid-in capital |
167,217,936 |
117,525,377 |
|||||||||||
|
|
28,748,406 |
21,315,710 |
|||||||||||
|
Statutory reserve |
6,412,892 |
6,412,892 |
|||||||||||
|
|
4,206,844 |
3,925,900 |
|||||||||||
|
|
206,665,133 |
149,258,934 |
|||||||||||
|
|
16,094,649 |
- |
|||||||||||
|
Total Shareholders' Equity |
222,759,782 |
149,258,934 |
|||||||||||
|
Total Liabilities and Shareholders' Equity |
$ |
317,008,884 |
$ |
249,030,185 |
|||||||||
|
PINGTAN MARINE ENTERPRISE LTD. AND SUBSIDIARIES |
||||||||
|
For the Three Months Ended March 31, |
||||||||
|
2015 |
2014 |
|||||||
|
CASH FLOWS FROM OPERATING ACTIVITIES: |
||||||||
|
Net income |
$ |
8,416,262 |
$ |
23,388,716 |
||||
|
Adjustments to reconcile net income from operations to net cash |
||||||||
|
provided by operating activities: |
||||||||
|
Depreciation |
1,528,756 |
1,328,129 |
||||||
|
Increase in allowance for doubtful accounts |
160,765 |
- |
||||||
|
Loss on equity method investment |
3,345 |
- |
||||||
|
Changes in operating assets and liabilities: |
||||||||
|
Accounts receivable |
19,795,236 |
(7,802,740) |
||||||
|
Inventories |
7,266,034 |
(2,969,237) |
||||||
|
Prepaid expenses |
13,289 |
2,347,060 |
||||||
|
Prepaid expenses - related parties |
(10,140,274) |
- |
||||||
|
Deferred expenses - related parties |
472,387 |
- |
||||||
|
Other receivables |
164,836 |
(155,541) |
||||||
|
Advances to suppliers |
- |
(81,546) |
||||||
|
Accounts payable |
122,267 |
365,972 |
||||||
|
Accounts payable - related parties |
(2,307,645) |
(4,930,343) |
||||||
|
Advances from customers |
(155,489) |
(292,855) |
||||||
|
Accrued liabilities and other payables |
792,197 |
(743,844) |
||||||
|
Due to related parties |
3 |
23,352 |
||||||
|
NET CASH PROVIDED BY OPERATING ACTIVITIES |
26,131,969 |
10,477,123 |
||||||
|
CASH FLOWS FROM INVESTING ACTIVITIES: |
||||||||
|
Refunds from commercial retail space prepayments |
22,497,898 |
- |
||||||
|
Purchase of property, plant and equipment |
(16,361) |
(380,339) |
||||||
|
Refunds from fixed assets deposits |
- |
1,901,560 |
||||||
|
Payments for equity method investment |
(40,744,483) |
- |
||||||
|
NET CASH (USED IN) PROVIDED BY INVESTING ACTIVITIES |
(18,262,946) |
1,521,221 |
||||||
|
CASH FLOWS FROM FINANCING ACTIVITIES: |
||||||||
|
Proceeds from short-term bank loans |
7,153,729 |
8,636,605 |
||||||
|
Repayments of short-term bank loans |
(6,158,048) |
(6,722,024) |
||||||
|
Proceeds from long-term bank loans |
- |
3,745,867 |
||||||
|
Repayments of long-term bank loans |
(6,506,894) |
- |
||||||
|
Advances from related parties |
1,100,000 |
650,000 |
||||||
|
Payments made for dividend |
(790,551) |
- |
||||||
|
Capital contribution from non-controlling interest |
65,191,173 |
- |
||||||
|
Payments made to related parties in connection with the termination of VIE |
(13,527,168) |
- |
||||||
|
NET CASH PROVIDED BY FINANCING ACTIVITIES |
46,462,241 |
6,310,448 |
||||||
|
EFFECT OF EXCHANGE RATE ON CASH AND CASH EQUIVALENTS |
296,407 |
(427,669) |
||||||
|
NET INCREASE IN CASH AND CASH EQUIVALENTS |
54,627,671 |
17,881,123 |
||||||
|
CASH AND CASH EQUIVALENTS - beginning of period |
12,752,272 |
8,156,599 |
||||||
|
CASH AND CASH EQUIVALENTS - end of period |
$ |
67,379,943 |
$ |
26,037,722 |
||||
|
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: |
||||||||
|
Cash paid for: |
||||||||
|
Interest |
$ |
939,951 |
$ |
1,481,812 |
||||
|
Income taxes |
$ |
- |
$ |
- |
||||
|
NON-CASH INVESTING AND FINANCING ACTIVITIES: |
||||||||
|
Acquisition of property and equipment by decreasing prepayment for long-term assets |
$ |
- |
$ |
9,841,190 |
||||
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/pingtan-marine-enterprise-reports-financial-results-for-the-first-quarter-ended-march-31-2015-300081143.html
SOURCE Pingtan Marine Enterprise Ltd.