TORONTO, May 5, 2015 /CNW/ - Asia Bio-Chem Group Corp. (CSE: ABC) ("Asia Bio-Chem" or the "Company") announces its financial results for the three-month and fiscal year ending December 31, 2014.
Highlights
- With support from Beidahuang State Farm Group General Corp ("Beidhuang"), during the fourth quarter, the Company resumed production and sales.
- Net loss for the fourth quarter was $36.4 million (-$0.43 per share) compared with a net loss of $41.0 million (-$0.48 per share) during the fourth quarter of 2013.
- The company's EBITDA improved to negative $23.2 million during the fourth quarter compared with negative $34.3 million during the fourth quarter of 2013.
- The Company continues to fund its losses with loans from various sources. As at December 31, 2014 total loans outstanding were $248.1 million.
- The Company continues to enjoy the strong support of its banking group and successfully renewed $58.7 million in loans in the fourth quarter and obtained additional $41.7 million in new loans in the quarter.
- The Company maintains unrestricted cash balance of $7.5 million at December 31, 2014.
"During 2014 our industry has continued to struggle from low product prices caused by a weak Chinese economy," stated Mr. Zhiping Wang, President and CEO of Asia Bio-Chem. "We are pleased to report Beidahuang State Farm Group has been providing financial support to Asia Bio-Chem and our discussion continues with regard to a strategic transaction".
During the fourth quarter, production was 87,110 tonnes representing 41% capacity utilization of the Daqing and Changtu facilities. For the fiscal year 2014 capacity utilization of these plants was 17%.
During the fourth quarter, gross margin reached -17.4% as all product prices declined and corn costs increased compared with the fourth quarter of 2013. For the year as a whole, gross margin was -11.0% from -2.2% the previous year. This reduction was also due to higher corn costs and lower product prices.
SUMMARY FINANCIAL STATEMENTS
in thousands of Canadian dollars except per share and percentage data | Years Ended December 31, | ||||||||||||||||||
2014 | 2013 | % Change | |||||||||||||||||
Sales | 51,236 | 109,261 | -53.1% | ||||||||||||||||
Gross profit (loss) | (5,644) | (2,361) | -139.1% | ||||||||||||||||
Gross margin (% of Sales) | -11.0% | -2.2% | |||||||||||||||||
Operating expenses | 24,988 | 26,466 | -5.6% | ||||||||||||||||
Income (loss) from operations | (30,632) | (28,826) | -6.3% | ||||||||||||||||
Other income (expense) | (39,033) | (42,876) | 9.0% | ||||||||||||||||
Income taxes (recovery) | (6,148) | 809 | n/a | ||||||||||||||||
Net income (loss) | (63,517) | (72,512) | 12.4% | ||||||||||||||||
EBITDA | (30,195) | (43,384) | 30.4% | ||||||||||||||||
Earnings per share: | |||||||||||||||||||
Basic and diluted | (0.74) | (0.83) | |||||||||||||||||
Weighted average number of shares: | |||||||||||||||||||
Basic and diluted | 85,306,258 | 85,306,258 | |||||||||||||||||
Balance Sheet Highlights | As at 12/31/14 | As at 12/31/13 | |||||||||||||||||
Cash | 7,538 | 1,649 | |||||||||||||||||
Working capital | (223) | (169) | |||||||||||||||||
Total assets | 252,487 | 255,557 | |||||||||||||||||
Current ratio | 0.31:1x | 0.33:1x | |||||||||||||||||
Earnings before interest, taxes, depreciation and amortization ("EBITDA") during the fourth quarter was negative $23.2 million compared with negative $34.3 million in the same period of 2013. For the fiscal year, EBITDA was negative $30.2 million compared with negative $43.4 million during fiscal 2013.
Net losses for the fourth quarter and year was $36.4 million and $63.5 million compared with net loss of $41.0 million and $72.5 million for the corresponding periods of 2013
During 2014, the Company's unrestricted cash position increased to $7.5 million and total debt increased to $248.1 million as at December 31, 2014.
About Asia Bio-Chem Group Corp.
Asia Bio-Chem Group, through its wholly-owned subsidiaries in the People's Republic of China, is in the business of processing corn into cornstarch, germ and gluten for sale into the domestic Chinese market. From its plants in Liaoning and Heilongjiang Province, the Company has a total processing capacity of 1.5 million tonnes of corn per year.
This news release contains certain statements that may be deemed "forward looking statements". Forward looking statements are statements that are not historical facts and are generally, but not always, identified by the words "expects,", "plans", "anticipates", "believes", "intends", "estimates", "projects", "potential" and similar expressions, or that events or conditions "will", "would", "may", "could" or "should" occur. Although the Company believes the expectations expressed in such forward looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results may differ materially from those in forward looking statements. Forward looking statements are based on the beliefs, estimates and opinions of the Company's management on the date the statements are made. The Company undertakes no obligation to update these forward looking statements, except as required by law, in the event that management's beliefs, estimates or opinions, or other factors, should change.
SOURCE Asia Bio-Chem Group Corp.
