SOURCE: ONE Bio, Corp.

May 17, 2011 08:00 ET

ONE Bio Announces First Quarter 2011 Financial Results

1Q11 Net Income Increased by 46.6% to $2.4 Million; 1Q11 EPS Increased by 41.7% to $0.34 per Diluted Share; Gross Margin up to 47.8% Versus 36.8% in 1Q10

MIAMI, FL--(Marketwire - May 17, 2011) - ONE Bio, Corp. ("ONE" or the "Company") (OTCBB: ONBI), an innovative company utilizing green process manufacturing to produce raw chemicals and herbal extracts, natural and health supplements and organic products, today announced unaudited financial results for the first quarter ended March 31, 2011. A summary of financial results includes the following:

Revenue for the three months ended March 31, 2011 reached $12.1 million, an increase of 8.2% compared to $11.2 million for the three months ended March 31, 2010. The increase in revenue is primarily the result of growth experienced in the Company's Chemical and Herbal Extract ("CHE") and Organic Products ("OP") business units.

Net income for the three months ended March 31, 2011 reached $2.4 million, an increase of 46.6% compared to $1.6 million for the three months ended March 31, 2010. The increase in net income is primarily attributable to increased sales and a higher gross margin achieved by the Company in the first quarter of 2011 versus the same period in 2010.

Gross profit for the three months ended March 31, 2011 was $5.8 million, as compared to $4.1 million for the three months ended March 31, 2010. Gross margin was 47.8% compared to 36.8% for the first quarter of 2010. The increase in gross margin for the first quarter of 2011 was primarily due to the launch of several new higher-margin products during 2010 and a higher margin generated by the Company's finance business unit.

Operating income for the three months ended March 31, 2011 reached $3.7 million, an increase of 28.8% compared to $2.9 million for the three months ended March 31, 2010. Operating expenses for the first quarter of 2011 totaled $2.0 million, up 68.5% from $1.2 million in the same period a year ago. The increase in operating expenses was primarily related to higher selling expenses and one-time corporate costs in 2011, while 2010 operating expenses were reduced by a one-time tax gain.

Earnings per share for the three months ended March 31, 2011 reached $0.36 ($0.34 on a fully diluted basis), compared to $0.28 ($0.24 on a fully diluted basis) for the three months ended March 31, 2010.

As of March 31, 2011, cash and cash equivalents totaled $8.7 million, working capital totaled $15.5 million, and shareholders' equity was $43.3 million.

                                                    Three Months ended
                                                         March 31,
                                                --------------------------
                                                    2011          2010
Revenues                                        $ 12,080,252  $ 11,162,507
Cost of sales                                      6,308,406     7,054,796
                                                ------------  ------------
Gross profits                                      5,771,846     4,107,711
                                                ------------  ------------
Operating expenses
  General and administrative expenses              1,619,283     1,116,844
  Research and development expenses                  137,549        60,388
  Selling and marketing expenses                     289,889        37,637
                                                   2,046,721     1,214,869
                                                ------------  ------------
Income from operations                             3,725,125     2,892,842

Other income(expense)                               (274,191)     (359,400)
                                                ------------  ------------
Income before income taxes                         3,450,934     2,533,442
Provision for income taxes                        (1,016,145)     (702,515)
                                                ------------  ------------
Net income                                         2,434,789     1,830,927

Non-controlling interest                             (34,568)     (193,855)
                                                ------------  ------------
Net income attributable to Company              $  2,400,221  $  1,637,072
                                                ============  ============
Earnings per share
  - Basic                                       $       0.36  $       0.28
                                                ============  ============
  - Diluted                                     $       0.34  $       0.24
                                                ============  ============
Weighted average # shares outstanding:
  - Basic                                          6,720,065     5,834,406
                                                ============  ============
  - Diluted                                        7,150,098     6,701,543
                                                ============  ============

"Our first quarter 2011 results demonstrate the continued robust demand for our products," stated Marius Silvasan, ONE's CEO. "The new products we launched during 2010 helped boost our gross margin in the first quarter of 2011 to 47.8% from 36.8% for the same period a year ago. The significant increase in gross margin validates our business model and the strategy we adopted in 2010. 2010 was a key year in which we invested in the expansion of our product portfolio, enhanced the quality of our current lineup and further strengthened our IP technology, providing us with a strong competitive advantage. In 2011, our strategy is to continue growing our market share in China while further expanding in the United States and Japan."

INVESTOR CALL AND WEBCAST

As a reminder, the investor conference call to discuss ONE's first quarter 2011 financial results is scheduled for this morning, Tuesday, May 17, 2011, at 9:00 a.m. EDT.

Investors can access the call as follows:

Call-in Number:   U.S./Canada     877-941-2322
                  International   480-629-9715

Conference ID:    4441652

Instructions: All parties should dial 1-877-941-2322 or 1-480-629-9715 approximately 10 minutes prior to the conference start time and ask for the ONE Bio, Corp. First Quarter 2011 Earnings Conference Call, or Conference ID 4441652. Callers will be asked to provide their name, company name, phone number and email address. They will then be placed on a brief music hold until the call is ready to begin.

A replay of the call will be available for two weeks from 12:00 noon EDT on May 17, 2011, until 11:59 p.m. EDT on May 31, 2011. The number for the replay is 877-870-5176, or 858-384-5517 for international calls; the pass code for the replay is 4441652. In addition, a recording of the call will be available via the Company's website at http://www.onehcorp.com for one year.

Internet Webcast: http://viavid.net/dce.aspx?sid=000086AE

This event will also play on ViaVid.net as a secondary location. A default message will play from these links until the event goes live. This message asks viewers to check back at a later time. On the day of the event, a ViaVid technician will dial into the event call 15 minutes prior to the start time to establish the webcast line. To accommodate any viewers tuning in early, ViaVid will begin streaming live with a music hold 10 minutes prior to the start time.

About ONE Bio, Corp.

ONE Bio, Corp. ("ONE") (OTCBB: ONBI) (www.onehcorp.com), headquartered in Miami, FL, is an innovative company utilizing patented green process manufacturing to produce raw chemicals and herbal extracts, natural supplements and organic products. ONE is focused on the Asia-Pacific region and the United States. Key products include widely recognized Solanesol, CoQ10, Resveratrol and 5-HTP, organic fertilizers, and organic bamboo health food and beverages. ONE has experienced solid organic growth driven by a robust demand for its products in China, Japan and the United States.

This press release includes statements that constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 (the "Reform Act"). ONE Bio, Corp. claims the protection of the safe-harbor for forward-looking statements contained in the Reform Act. These forward-looking statements are often characterized by the terms "may," "believes," "projects," "expects," or "anticipates," and do not reflect historical facts. Specific forward-looking statements contained in this press release include, but are not limited to: our successful integration of diversified growth companies, impact of the company's expansion plan, and new business development success, future financial results, development and acquisition of new product lines and services, the impact of competitive products or pricing from technological changes, the effect of economic conditions and other uncertainties. The forward-looking statements contained herein involve risks and uncertainties that could cause actual results to differ materially from the expectations contained in any such forward-looking statements. These risks include, but are not limited to: failure to manage operating expenses or integrate new companies and/or technologies, each of which could have a material impact on our business, our financial results, and the company's stock price. These risks and other factors are detailed in the Company's regular filings with the U.S. Securities and Exchange Commission. Most of these factors are difficult to predict accurately and are generally beyond the Company's control. Forward-looking statements speak only as to the date they are made and ONE Bio, Corp. does not undertake to update forward-looking statements to reflect circumstances or events that occur after the date the forward-looking statements are made.

Contact Information

  • Company Contact:
    Jeanne Chan
    Senior VP
    Tel: +888.676.4445
    Email: jchan@onehcorp.com

    Investor Relations Contact:
    Investor Relations & Corporate Communications
    Tel: 888-676-4445
    Email: ir@onehcorp.com

    Dave Gentry
    U.S.
    RedChip Companies, Inc.
    Tel: +1-800-733-2447, Ext. 104
    Email: info@redchip.com