VANCOUVER, BRITISH COLUMBIA -- (Marketwired) -- 07/31/13 -- Asia Packaging Group Inc. (TSX VENTURE: APX) ("Asia Packaging" or the "Company") announces its annual financial statements for the fiscal year ending March 31, 2013. The Company has also successfully closed the acquisition of Yuanxing Packaging (China) Co Ltd. ("Yuanxing") as well as the purchase of the land use right and buildings for this company's manufacturing operations in Fujian Province.
Annual Financial Results
-- Company achieved revenues of $47.0 million for the year ended March 31, 2013, representing 10.0% growth over the corresponding year ended March 31, 2012. This improvement was largely due to a change in product mix towards higher price, higher margin products. -- Higher margin product sales contributed to an increase in gross profit margin during the year to 26.9% from 26.2% of the year ended March 31, 2012. -- The Company achieved EBITDA before share based compensation and listing expenses of $11.6 million during the year ended March 31, 2013, representing a 10.1% improvement over the year ended March 31, 2012. -- Net income increased 36.3% for the year ended March 31, 2013 to $9.0 million compared with $6.6 million during the year ended March 31, 2012. The increase was contributed by the improvement in the change in product mix towards higher price and higher margin products. -- As at March 31, 2013, the Company had $5.9 million in cash and no debt. -- Subsequent to the year end the Company successfully closed it's acquisition of Yuanxing as well as acquiring the land right use and buildings associated with the Yuanxing operation.
"The closing of the Yuanxing acquisition was a significant step in expanding our product base and growing our geographic reach in China" stated Mr. Wenge Hong, President and CEO of Asia Packaging. "Further, the purchasing of the land use rights and buildings for Yuanxing will help strengthen the business".
During the fiscal year ended March 31, 2013 total sales volume increased by 3.5% with contributed to a 10.0% improvement in sales compared with the previous year.
The Company's increased volumes of higher value, medical packaging and metalized polyester film products contributed to a 0.7% increase in gross margins to 26.9% during the year.
SUMMARY FINANCIAL STATEMENTS
Fiscal Year Ended March 31 2013 2012 % Change Sales 46,997,765 42,743,371 10.0% Gross profit 12,635,450 11,186,338 13.0% Gross margin (% of Sales) 26.9% 26.2% 2.7% Operating expenses 1,539,234 2,027,356 -24.1% Income from operations 11,096,216 9,158,982 21.2% Other income (expenses) (256,712) (1,225,525) -79.1% Income taxes 1,816,481 1,315,257 38.1% Net income 9,023,023 6,618,200 36.3% EBITDA 11,473,324 8,455,253 35.7% Adjusted EBITDA (i) 11,614,715 10,551,635 10.1% Earnings Per Share Basic 0.07 0.06 Diluted 0.07 0.06 Weighted average number of shares Basic 128,216,063 119,105,052 Diluted 128,817,029 119,449,540
(i)Adjusted EBITDA is before stock-based compensation and Listing expenses
Both Adjusted EBITDA and net income improved during the year ended March 31, 2013 by 10.1% and 35.7% respectively compared to the previous year.
The Company continues to maintain a strong balance sheet with over $15 million in working capital and $5.9 million in cash as at March 31, 2013. The Company continues to maintain no debt and has total equity of $46.7 million at March 31, 2013.
Acquisition of Anhai Hongrizhong Plastic Color Printing Co. Ltd.
The previously announced acquisition of JinJiang City Anhai Hongrizhong Plastic Color Printing Co., Ltd. was discontinued due to the delay in receipt of a business licenses and other permits. As at March 31, 2013, $5.9 million of the $6.4 million acquisition deposit was returned to the Company.
About Asia Packaging Group Inc.
Asia Packaging Group, through its wholly-owned subsidiaries in the People's Republic of China ("PRC"), is in the business of manufacturing packaging products and services to the food pharmaceutical and retail industries in China. The Company operates a manufacturing plant in City, Jiangxi China where it produces a variety of film and plastic packaging products. With the completion of the acquisition of Yuanxing Packaging earlier this year, the Company has added a bag manufacturing facility located in Fujian Province and sales offices in Guangzhou and Shanghai.
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.
Throughout this news release we use certain non-IFRS measures such as the term "EBIDTA" to analyze operating performance. We define EBITDA as operating revenues less operating expenses from continuing operations and therefore reflect earnings before interest, income tax, depreciation and amortization, non-controlling interest and any non-operating and non-recurring items. These non-IFRS measures do not have a standardized meaning prescribed by IFRS and may not be comparable to similarly titled measures presented by other companies. These non-IFRS measures are referred to in this news release because we believe they are indicative measures of a company's performance and are generally used by investors to evaluate companies in the resort operations and resort development industries. Figures used in calculation of EBITDA are in compliance with IFRS, therefore no reconciliation is needed.
Asia Packaging Group
Asia Packaging Group