China Jo-Jo Drugstores Announces Fiscal Third Quarter 2009 Results
Submitted by SmallCapVoice.com
HANGZHOU, China–(BUSINESS WIRE)–China Jo-Jo Drugstores, Inc. (OTCBB:CJJD) (“Jo-Jo Drugstores” or the “Company”), which operates a retail pharmacy chain in the People’s Republic of China, today announced its financial results for its fiscal third quarter ended December 31, 2009.
Fiscal Third Quarter 2009 Highlights
- Revenues increased 29.1% period-over-period to $14.9 million
- Gross profit increased 43.4% period-over-period to $4.8 million
- Income from operations increased by 25.2% period-over-period to $3.4 million
“Our revenue increase in the fiscal third quarter ended December 31, 2009 was largely attributable to operating more stores and increasing overall same store sales,” stated Mr. Lei Liu, Chairman and Chief Executive Officer of Jo-Jo Drugstores. “Throughout the quarter, we continued to execute on our goal of providing our customers with quality name brand products at the lowest overall prices and offering physician consultations at all of our locations. Our focus is our customer’s overall health.”
For the Three Months Ended December 31, 2009 and 2008
Gross profit for the fiscal third quarter was $4.8 million, up 43.4% from the third quarter of 2008. Gross margin for the quarter was 31.9%, compared with 28.8% in the comparable 2008 period. Gross margin grew mainly as a result of increased sales.
Total operating expenses for the third fiscal quarter of 2009 were $1.4 million, compared with $0.6 million in the prior period. Selling expenses totaled $0.9 million, or 6.1% of revenues, for the third quarter of 2009 as compared to $0.5 million, or 4.2% of revenues, in the comparable period a year ago. The increase is a result of operating additional stores and increasing promotional activities.
General and administrative expenses increased to $0.4 million, or 3.0% of revenues, in the third quarter of 2009, compared with $0.1 million, or 1.0% of revenues, in the same period of 2008. The increase is primarily a result of operating additional stores during the three months ended December 31, 2009.
Income from operations increased to $3.4 million for the third fiscal quarter of 2009, or 22.9% of revenues, from $2.7 million, or 23.6% of revenues for the same quarter in 2008.
As of December 31, 2009, the Company had approximately $1.6 million in cash and restricted cash, current assets of $17.9 million and total liabilities of $8.3 million.
Conference Call
The Company will host a conference call to discuss these results on Wednesday, February 10, 2010, at 8:00 a.m. Eastern time. To participate in the conference call, please dial 1-877-485-3104 from the US. Participants dialing in from China can access the call by dialing 1-201-689-8579. Investors may also access a live audio webcast of this conference call under the Investors Relations section of the Company’s website at http://www.chinajojodrugstores.com.
A replay of the webcast will be available approximately two hours after the conclusion of the call. The webcast replay will remain available for three months. An audio replay will be made available until February 17, 2010. The audio replay can be accessed by dialing 1-877-660-6853 or 1-201-612-7415 and entering pass-code 337823.
About China Jo-Jo Drugstores, Inc.
China Jo-Jo Drugstores, Inc., through its contractually controlled affiliates Hangzhou Jiuzhou Grand Pharmacy Chain Co., Ltd., Hangzhou Jiuzhou Clinic of Integrated Traditional and Western Medicine General Partnership, and Hangzhou Jiuzhou Medical & Public Health Service Co., Ltd., operates a retail pharmacy chain in China offering both western and traditional Chinese medicine. The chain currently has 22 stores throughout Hangzhou, the provincial capital of the Zhejiang Province.
Forward-looking Statements
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: Certain of the statements made in the press release constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements can be identified by the use of forward-looking terminology such as “believe,” “expect,” “may,” “will,” “should,” “project,” “plan,” “seek,” “intend,” or “anticipate” or the negative thereof or comparable terminology. Such statements typically involve risks and uncertainties and may include financial projections or information regarding the progress of new product development. Actual results could differ materially from the expectations reflected in such forward-looking statements as a result of a variety of factors, including the risks associated with the effect of changing economic conditions in The People’s Republic of China, variations in cash flow, reliance on collaborative retail partners and on new product development, variations in new product development, risks associated with rapid technological change, and the potential of introduced or undetected flaws and defects in products, and other risk factors detailed in reports filed with the Securities and Exchange Commission from time to time.
| CHINA JO-JO DRUGSTORES, INC AND SUBSIDIARIES | ||||||||
| (FORMERLY KNOWN AS KERRISDALE MINING CORPORATION) | ||||||||
| CONSOLIDATED BALANCE SHEETS | ||||||||
| AS OF DECEMBER 31, 2009 AND MARCH 31, 2009 | ||||||||
| December 31, | March 31, | |||||||
| 2009 | 2009 | |||||||
| (Unaudited) | ||||||||
| ASSETS | ||||||||
| CURRENT ASSETS | ||||||||
| Cash | $ | 1,226,929 | $ | 996,302 | ||||
| Restricted cash | 362,349 | - | ||||||
| Accounts receivable, trade | 1,922,664 | 1,265,110 | ||||||
| Inventories | 3,527,071 | 2,793,101 | ||||||
| Other receivables | 364,574 | 67,079 | ||||||
| Other receivables – related parties | - | 2,432 | ||||||
| Advances to suppliers | 6,813,318 | 5,485,113 | ||||||
| Advances to supplier – related parties | 2,190,826 | 1,797,104 | ||||||
| Other current assets | 1,455,707 | 564,379 | ||||||
| Total current assets | 17,863,438 | 12,970,620 | ||||||
| EQUIPMENT, net | 911,001 | 979,432 | ||||||
| OTHER ASSETS: | ||||||||
| Long term deposit | 2,326,829 | 2,015,149 | ||||||
| Total assets | $ | 21,101,268 | $ | 15,965,201 | ||||
| LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||
| CURRENT LIABILITIES | ||||||||
| Short term loans | $ | 1,467,000 | $ | 1,465,000 | ||||
| Notes payable | 720,816 | - | ||||||
| Accounts payable, trade | 3,217,895 | 5,939,237 | ||||||
| Other payables | 1,158,763 | 404,731 | ||||||
| Other payables – related parties | 333,029 | 326,715 | ||||||
| Taxes payable | 1,125,652 | 811,316 | ||||||
| Accrued liabilities | 248,481 | 360,655 | ||||||
| Total liabilities | 8,271,636 | 9,307,654 | ||||||
| COMMITMENTS AND CONTINGENCIES | ||||||||
| SHAREHOLDERS’ EQUITY | ||||||||
| Common stock; $0.001 par value; 75,000,000 shares authorized; 20,000,000 and 15,800,000 shares issued and outstanding as of September 30, 2009 and March 31, 2009, respectively | 20,000 | 15,800 | ||||||
| Paid-in capital | 867,884 | 661,800 | ||||||
| Statutory reserves | 1,309,109 | 1,309,109 | ||||||
| Retained earnings | 10,982,385 | 5,033,275 | ||||||
| Accumulated other comprehensive loss | (349,746 | ) | (362,437 | ) | ||||
| Total shareholders’ equity | 12,829,632 | 6,657,547 | ||||||
| Total liabilities and shareholders’ equity | $ | 21,101,268 | $ | 15,965,201 | ||||
| CHINA JO-JO DRUGSTORES, INC AND SUBSIDIARIES | ||||||||||||||||
| (FORMERLY KNOWN AS KERRISDALE MINING CORPORATION) | ||||||||||||||||
| CONSOLIDATED STATEMENTS OF INCOME AND OTHER COMPREHENSIVE INCOME | ||||||||||||||||
| FOR THREE AND NINE MONTHS ENDED DECEMBER 31, 2009 AND 2008 | ||||||||||||||||
| (Unaudited) | ||||||||||||||||
| Three months ended | Nine months ended | |||||||||||||||
| December 31, | December 31, | |||||||||||||||
| 2009 | 2008 | 2009 | 2008 | |||||||||||||
| REVENUES | $ | 14,923,706 | $ | 11,562,762 | $ | 38,863,743 | $ | 33,096,321 | ||||||||
| COST OF GOODS SOLD | 10,156,871 | 8,238,078 | 27,574,136 | 24,139,585 | ||||||||||||
| GROSS PROFIT | 4,766,835 | 3,324,684 | 11,289,607 | 8,956,736 | ||||||||||||
| SELLING EXPENSES | 912,312 | 487,395 | 1,986,471 | 1,280,838 | ||||||||||||
| GENERAL & ADMINISTRATIVE EXPENSES | 441,861 | 111,386 | 1,372,205 | 614,987 | ||||||||||||
| OPERATING EXPENSES | 1,354,173 | 598,781 | 3,358,676 | 1,895,825 | ||||||||||||
| INCOME FROM OPERATIONS | 3,412,662 | 2,725,903 | 7,930,931 | 7,060,911 | ||||||||||||
| OTHER INCOME (EXPENSE), NET | 31,557 | 6,448 | 41,800 | (9,190 | ) | |||||||||||
| INCOME BEFORE INCOME TAXES | 3,444,219 | 2,732,351 | 7,972,731 | 7,051,721 | ||||||||||||
| PROVISION FOR INCOME TAXES | 797,866 | 736,828 | 2,023,621 | 1,738,462 | ||||||||||||
| NET INCOME | 2,646,353 | 1,995,523 | 5,949,110 | 5,313,259 | ||||||||||||
| OTHER COMPREHENSIVE INCOME | ||||||||||||||||
| Foreign currency translation adjustments | 1,520 | (5,042 | ) | 12,651 | 32,730 | |||||||||||
| COMPREHENSIVE INCOME (LOSS) | $ | 2,647,873 | $ | 1,990,481 | $ | 5,961,801 | $ | 5,345,989 | ||||||||
| BASIC AND DILUTED WEIGHTED AVERAGE NUMBER OF SHARES | 20,000,000 | 15,800,000 | 17,409,489 | 15,800,000 | ||||||||||||
| BASIC AND DILUTED EARNING PER SHARE | $ | 0.13 | $ | 0.13 | $ | 0.34 | $ | 0.34 | ||||||||
China Jo-Jo Drugstores, Inc.
Bennet P. Tchaikovsky, 310-849-2672
Chief Financial Officer
bennet@jojodrugstores.com
or
Investor Relations
Capital Group Communications, Inc.
415-332-7200
415-332-7201
Website: http://www.capitalgc.com/
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