|By PR Newswire||
|April 1, 2014 12:31 AM EDT||
TORONTO, March 31, 2014 /CNW/ - Asia Bio-Chem Group Corp. (TSX: ABC) ("Asia Bio-Chem" or the "Company") announces its financial results for the three-month and fiscal year ending December 31, 2013.
The Company continues to manage its capacity utilization in reaction to
market conditions. During the fourth quarter, the Company's Changtu
and Daqing plants operated at approximately 12% capacity while the
newly acquired Tieling facility remained closed. Consequently,
revenues were $18.0 million during the fourth quarter representing a
12.3% decline from the same period of 2012.
During the fourth quarter, lower starch prices caused a negative gross
margin of 13.4% compared with a negative gross margin of 13.0% during
the same period in 2012.
The Company took a $30.0 million non-cash charge during the quarter to
reflect impairment of the assets employed in the business.
As a result of the impairment charge, the Company 's EBITDA decreased
during the fourth quarter to negative $34.3 million compared with
negative $8.1 million during the fourth quarter of 2012.
Net loss for the fourth quarter was $41.0 million (-$0.48 per share)
compared with a net loss of $14.4 million (-$0.17 per share) during the
fourth quarter of 2012
The Company continues to enjoy the strong support of its banking group
and successfully renewed all loans due in the fourth quarter and
obtained additional $4.7 million in loans in the quarter.
The Company maintains unrestricted cash balance of $1.6 million at
December 31, 2013.
On March 7, 2014 the Company announced that its controlling shareholders
have entered into a letter of intent to sell of their shares of Asia
Bio-Chem to a subsidiary of the Chinese state-owned Beidahuang State
Farm Group General Corp. This transaction is expected to close during
the second quarter of the current fiscal year.
- On February 28, 2014 the Company announced that it was put on notice by the Toronto Stock Exchange that its common shares will be delisted on March 28, 2014. In order to provide continuous trading in its shares, the Company obtained approval for listing on the Canadian Securities Exchange which commenced on March 27, 2014.
"During 2013 our industry has continued to struggle from the weak Chinese economy and we have seen rationalization and consolidation," stated Mr. Zhiping Wang, President and CEO of Asia Bio-Chem. "We are pleased to be part of this consolidation through our pending transaction with Beidahuang State Farm Group. Upon closing, Asia Bio-Chem expects to benefit from financial support and integration with the State Farm corn purchasing and down-stream processing capabilities".
During the fourth quarter, overall production was 24,732 tonnes representing 12% capacity utilization of the Daqing and Changtu facilities. For the fiscal your 2013, capacity utilization of these plants was 31%.
During the fourth quarter, gross margin reached -13.4% as starch and germ prices declined and corn costs remained relatively constant compared with the fourth quarter of 2012. For the year as a whole, gross margin improved to -5.3% from -6.3% the previous year. This improvement was primarily due to lower corn costs and higher product prices for gluten and fibre.
SUMMARY FINANCIAL STATEMENTS
in thousands of Canadian
dollars except per share and
|Three Months Ended||Twelve Months Ended December 31|
|31/12/13||31/12/12||% Change||2013||2012||% Change|
|Gross margin (% of Sales)||-13.4%||-13.0%||-5.3%||-6.3%||112.6%|
|Income (loss) from operations||(7,938)||(10,588)||-244.6%||(28,826)||(32,450)||-103.5%|
|Other income (expense)||(33,378)||(1,331)||-150.4%||(42,876)||(6,306)||n/a|
|Income recovery (taxes)||(358)||(2,446)||n/a||809||(523)||-80.8%|
|EBITDA before stock-based compensation||(34,313)||(8,092)||305.5%||(43,373)||(23,497)||29.1%|
|Earnings per share|
|Weighted average number of shares|
Earnings before interest, taxes, depreciation and amortization ("EBITDA") during the fourth quarter declined by $26.2 million compared with the same period of 2012. However adjusting for the non-cash impairment charge, EBITDA improved during the fourth quarter by $3.8 million compared with the fourth quarter of 2012.
For the fiscal year, EBITDA, after adjusting for the impairment charge, improved to negative $13.3 million from negative $19.5 million during fiscal 2012.
In addition to the impairment charge, the Company experienced higher depreciation and G&A costs during the fourth quarter and fiscal year ended December 31, 2013. These higher costs were largely associated with the Tieling facility which remained closed during the year.
Net losses for the fourth quarter and year was $41.0 million and $72.5 million respectively. While these losses were significantly higher than the corresponding periods of the previous year, the higher losses are almost entirely due to the impairment charge taken in the fourth quarter.
During 2013, the Company's unrestricted cash position declined to $1.6 million and total debt increased to $209.5 million as at December 31, 2013.
The Company will hold a conference call to discuss its results hosted by Mr. Zhiping Wang, President and Chief Executive Officer, Mr. Robert Wilson, Executive Vice President, and Ms. Elaine Zhao, Chief Financial Officer. Details regarding the call are as follows:
|Date:||Tuesday, April 1, 2014|
|Time:||9:00 AM Eastern Standard Time|
|Dial in number:||1-888-231-8191 or 647-427-7450|
|Conference ID and|
|Replay pass code:||10088019|
|Taped Replay:||1-855-859-2056 or 416-849-0833|
|(Available until April 7, 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.
In their session at 17th Cloud Expo, Hal Schwartz, CEO of Secure Infrastructure & Services (SIAS), and Chuck Paolillo, CTO of Secure Infrastructure & Services (SIAS), provide a study of cloud adoption trends and the power and flexibility of IBM Power and Pureflex cloud solutions. In his role as CEO of Secure Infrastructure & Services (SIAS), Hal Schwartz provides leadership and direction for the company.
Aug. 4, 2015 06:45 PM EDT Reads: 239
There are many considerations when moving applications from on-premise to cloud. It is critical to understand the benefits and also challenges of this migration. A successful migration will result in lower Total Cost of Ownership, yet offer the same or higher level of robustness. In his session at 15th Cloud Expo, Michael Meiner, an Engineering Director at Oracle, Corporation, analyzed a range of cloud offerings (IaaS, PaaS, SaaS) and discussed the benefits/challenges of migrating to each offe...
Aug. 4, 2015 06:45 PM EDT Reads: 220
SYS-CON Events announced today that the "Second Containers & Microservices Expo" will take place November 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. Containers and microservices have become topics of intense interest throughout the cloud developer and enterprise IT communities.
Aug. 4, 2015 05:30 PM EDT
As organizations shift towards IT-as-a-service models, the need for managing and protecting data residing across physical, virtual, and now cloud environments grows with it. CommVault can ensure protection and E-Discovery of your data – whether in a private cloud, a Service Provider delivered public cloud, or a hybrid cloud environment – across the heterogeneous enterprise. In his session at 17th Cloud Expo, Randy De Meno, Chief Technologist - Windows Products and Microsoft Partnerships at Com...
Aug. 4, 2015 05:00 PM EDT Reads: 110
The Software Defined Data Center (SDDC), which enables organizations to seamlessly run in a hybrid cloud model (public + private cloud), is here to stay. IDC estimates that the software-defined networking market will be valued at $3.7 billion by 2016. Security is a key component and benefit of the SDDC, and offers an opportunity to build security 'from the ground up' and weave it into the environment from day one. In his session at 16th Cloud Expo, Reuven Harrison, CTO and Co-Founder of Tufin,...
Aug. 4, 2015 03:00 PM EDT Reads: 573
Scrum Alliance has announced the release of its 2015 State of Scrum Report. Almost 5,000 individuals and companies worldwide participated in this year's survey. Most organizations in the market today are still leading and managing under an Industrial Age model. Not only is the speed of change growing exponentially, Agile and Scrum frameworks are showing companies how to draw on the full talents and capabilities of those doing the work in order to continue innovating for success.
Aug. 4, 2015 02:45 PM EDT
SYS-CON Events announced today that MobiDev, a software development company, will exhibit at the 17th International Cloud Expo®, which will take place November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. MobiDev is a software development company with representative offices in Atlanta (US), Sheffield (UK) and Würzburg (Germany); and development centers in Ukraine. Since 2009 it has grown from a small group of passionate engineers and business managers to a full-scale mobi...
Aug. 4, 2015 02:00 PM EDT Reads: 391
Between the compelling mockups and specs produced by your analysts and designers, and the resulting application built by your developers, there is a gulf where projects fail, costs spiral out of control, and applications fall short of requirements. In his session at @DevOpsSummit, Charles Kendrick, CTO and Chief Architect at Isomorphic Software, presented a new approach where business and development users collaborate – each using tools appropriate to their goals and expertise – to build mocku...
Aug. 4, 2015 01:30 PM EDT
Container technology is sending shock waves through the world of cloud computing. Heralded as the 'next big thing,' containers provide software owners a consistent way to package their software and dependencies while infrastructure operators benefit from a standard way to deploy and run them. Containers present new challenges for tracking usage due to their dynamic nature. They can also be deployed to bare metal, virtual machines and various cloud platforms. How do software owners track the usag...
Aug. 4, 2015 01:00 PM EDT Reads: 295
SYS-CON Events announced today that VividCortex, the monitoring solution for the modern data system, will exhibit at the 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. The database is the heart of most applications, but it’s also the part that’s hardest to scale, monitor, and optimize even as it’s growing 50% year over year. VividCortex is the first unified suite of database monitoring tools specifically desi...
Aug. 4, 2015 12:00 PM EDT Reads: 116
Graylog, Inc., has added the capability to collect, centralize and analyze application container logs from within Docker. The Graylog logging driver for Docker addresses the challenges of extracting intelligence from within Docker containers, where most workloads are dynamic and log data is not persisted or stored. Using Graylog, DevOps and IT Ops teams can pinpoint the root cause of problems to deliver new applications faster and minimize downtime.
Aug. 4, 2015 11:45 AM EDT
As Marc Andreessen says software is eating the world. Everything is rapidly moving toward being software-defined – from our phones and cars through our washing machines to the datacenter. However, there are larger challenges when implementing software defined on a larger scale - when building software defined infrastructure. In his session at 16th Cloud Expo, Boyan Ivanov, CEO of StorPool, provided some practical insights on what, how and why when implementing "software-defined" in the datacent...
Aug. 4, 2015 11:30 AM EDT Reads: 120
Learn how you can use the CoSN SEND II Decision Tree for Education Technology to make sure that your K–12 technology initiatives create a more engaging learning experience that empowers students, teachers, and administrators alike.
Aug. 4, 2015 09:30 AM EDT Reads: 120
Mobile, social, Big Data, and cloud have fundamentally changed the way we live. “Anytime, anywhere” access to data and information is no longer a luxury; it’s a requirement, in both our personal and professional lives. For IT organizations, this means pressure has never been greater to deliver meaningful services to the business and customers.
Aug. 4, 2015 08:45 AM EDT Reads: 265
In a recent research, analyst firm IDC found that the average cost of a critical application failure is $500,000 to $1 million per hour and the average total cost of unplanned application downtime is $1.25 billion to $2.5 billion per year for Fortune 1000 companies. In addition to the findings on the cost of the downtime, the research also highlighted best practices for development, testing, application support, infrastructure, and operations teams.
Aug. 4, 2015 07:00 AM EDT Reads: 227