Wednesday, March 28, 2012

China Marine Reports Fourth Quarter And Full Year 2011 Results

Press Release

Twelve Month Results
Full Year 2011 Results

FY 2011
FY 2010
Net Sales
$143.9 million
$122.7 million
Gross Profit
$31.7 million
$37.5 million
Net Income
$8.6 million
$21.1 million
Diluted EPS*
Adjusted Net Income**
$12.8 million
$23.5 million
Adjusted Diluted EPS**

* EPS calculated for the period is based on 29.5 million shares on December 31, 2011 versus 29.0 million shares reported on December 31, 2010.   
 ** Adjusted Net Income and Diluted EPS in 2011 are non-GAAP calculations and do not include $2.5 million of non-cash, amortization of intangible assets related to the Company's acquisition and $1.7 million of after-tax non-cash stock-based compensation expenses in 2011. For more information about the non-GAAP financial measures contained in this press release, please see "About Non-GAAP Financial Measures" below.

"We have experienced a number of extraordinary challenges this year and we are working diligently to solidify our position in the market," exclaimed Mr. Pengfei Liu, Chairman and CEO of China Marine. "As a result of our increased marketing support and food safety advertising for Mingxiang® foods and the fact that none of our seafood sources were affected by the March 2011 radiation leak in Japan, we believe that our seafood sales will rebound once public concern subsides. Growth of our 'Hi-Power' beverages were also weaker than forecasted due to an incident involving tainted clouding agents for use in certain beverages in Taiwan and China in the middle of last year. Though none of our products used such agents, we were also required to make additional investments in advertising to maintain and regain consumer confidence in 'Hi-Power'. As a result of these circumstances, it was necessary we allocate significant marketing dollars to demonstrate our commitment to food safety and the quality of our products for both our beverage and food segments, simultaneously, throughout 2011. Fortunately, our push in advertising and marketing has produced an additional benefit which is greater distributor interest and trust in our Company. As a result, we expect to selectively add new distributors in step with the recovery of the domestic beverage market in China and also increase our shipments of Mingxiang-branded foods to the many distributors we have maintained for years.  Throughout 2012, we believe "Hi-Power" and Mingxiang® food sales are poised to regain the growth trajectories we have witnessed in the past."

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