Shiner International, Inc. Announces Results for the First Quarter of 2012

Source from:  Shiner International, Inc. 05/22/2012

HAIKOU, China, May 21, 2012 /PRNewswire-Asia/ -- Shiner International, Inc. (BEST) ("Shiner" or the "Company"), an emerging global supplier of packaging solutions for food, tobacco, and consumer products, today announced its financial results for the quarter ended March 31, 2012. Total revenue for the three months ended March 31, 2012 were $17.4 million, an increase of 9.2% compared to total revenue of $15.9 million for the same quarter ended March 31, 2011. This increase was mainly attributable to an increase sales in BOPP film and advanced film. BOPP tobacco revenue increased 24.9%, or $2.0 million, in the three months ended March 31, 2012 to $10.0 million as compared to $8.0 million for the same period in 2011, which is benefited from the operation of our new BOPP tobacco film line resulting in better quality and powerful competitiveness. Coated film revenue decreased 16.3%, or $0.8 million, to $4.1 million in the three months ended March 31, 2012 as compared to $4.9 million for the same period in 2011. Our advanced film revenue increased 67.1%, or $0.9 million, to $2.2 million in the three months ended March 31, 2012 as compared $1.3 million for the same period in 2011, this strong growth tendency was mainly driven by our increased exportation to Vietnam market. Our color printing segment revenues decreased 37.8%, or $0.6 million, to $1.0 million in the three months ended March 31, 2012 as compared to $1.7 million for the same period in 2011. Internationally, we sell three lines of products: advanced film (anti-counterfeit film), coated film, and color printing. International sales for the three months ended March 31 2012 were $3.0 million, or 17.2%, of our revenues in 2012 as compared to $2.8 million or 18.0% of revenue for the corresponding period in the fiscal year ended 2011. The figures presented that international sales remained steady with little increase. All international sales are indirectly using a network of distributors and converters. Shiner's gross profit for the three months ended March 31, 2012 was $2.2 million, the gross profit margin decreased to 12.5% compared to 14.9% of total revenue for the same quarter of 2011. The decrease in gross profit margin was primarily a consequence of an increase in overhead unit rates as a result of increased labor costs and depreciation of the new property. Operating loss for the three months ended March 31, 2012 was $0.1 million compared to operating income of $1.2 million for the same quarter ended March 31, 2011. Selling, general and administrative ("SG&A") expenses increased by 98.1%, or $1.1 million, to $2.3 million for 2012 compared to $1.2 million in 2011. The increase in SG&A expense mainly due to increased R& D expenses, increased labor costs, depreciation of the new property, as compared to the same period of 2011. Shiner reported net income of $(0.6) million for the three months ended March 31, 2012, compared to $1.0 million in the same period of 2011. Earnings per share for the quarter were $(0.02), compared to earnings of $0.04 per share for the same period of 2011. [b]Management Comments[/b] Mr. Qingtao Xing, the CEO and President of Shiner stated, "We are very pleased with the improved sales and margins in our BOPP tobacco film and anti-countered film segment. As our new BOPP tobacco film line is put into operation, the market competitiveness of our company further is expected to be strengthened. I expect this growth trend will continue in the next quarters and believe this will positively affect to our revenue and profit. Our coated films experienced lower sales due to its higher sensitivity to prude oil price and labor rates. Mr. Xing continued, "We're focusing on driving our R&D innovation, a key competitive advantage for us, and we expect to develop new products to satisfy customers' needs. I expect our performance to be further improved in the coming quarter." About Shiner International, Inc. Shiner International, Inc. is engaged in the research and development, manufacture and sale of flexible packaging material and advanced film. Its products include coated packaging film, shrink-wrap film, common packaging film, anti-counterfeit laser holographic film and color-printed packaging materials. The Company's products are used by manufacturers in the food and consumer products industry to preserve the texture, flavor, hygiene, and convenience and safety of their products. The Company was founded in 1990 and is headquartered in Haikou, China. Approximately 80% of Shiner's current customers are located in China, with the remainder spanning Southeast Asia, Europe, the Middle East and North America. Shiner holds 19 patents on products and production equipment, and has an additional 10 patent applications pending. The Company's flexible packaging meets U.S. FDA requirements, as well as the requirements for food packaging sold in the EU. Shiner's product manufacturing process is certified under ISO 9001:2000. Enditem