SOURCE: ONE Bio, Corp.

March 31, 2011 16:00 ET

ONE Bio Announces Record 2010 Financial Results

Full-Year 2010 Revenue Increased by 137% YoY to $52.3 Million; 2010 Net Income Increased by 82% YoY to $8.7 Million; Earnings Call Scheduled for Friday, April 1, 2011 at 9:00 a.m. EDT

MIAMI, FL--(Marketwire - March 31, 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 audited financial results for the fourth quarter and fiscal year ended December 31, 2010. A summary of financial results includes the following:

Revenue for the three months ended December 31, 2010 reached $14.9 million, an increase of 11% compared to $13.4 million for the three months ended December 31, 2009. Revenue for the fiscal year ended December 31, 2010 reached $52.3 million, an increase of 137% compared to $22.1 million for the same period last year.

Net income for the three months ended December 31, 2010 reached $2.8 million, an increase of 2.9% compared to $2.7 million for the three months ended December 31, 2009. Net income for the fiscal year ended December 31, 2010 reached $8.7 million, an increase of 82% compared to $4.8 million for the same period last year.

The increase in revenue and net income for fiscal 2010 is primarily attributable to the acquisitions the Company completed during the third quarter of 2009 and the increase in demand for the Company's chemical and herbal extracts and organic products.

Gross profit for the three months ended December 31, 2010 was $6.1 million, as compared to $5.3 million for the three months ended December 31, 2009. Gross margin was 40.6% compared to 39.2% for the fourth quarter of 2009. Gross profit for fiscal 2010 was $20.1 million, as compared to $10.0 million in the previous year. Gross margin was 38.5% compared to 45.2% for 2009. The decrease in gross margin for fiscal 2010 was primarily due to a change in the product mix and new product launches. As the Company reaches economies of scale on the new products launched during 2010, the Company anticipates gross margin to increase to over 40% for fiscal 2011.

Operating income for the three months ended December 31, 2010 reached $4.1 million, an increase of 2.7% compared to $3.9 million for the three months ended December 31, 2009. Operating income for 2010 reached $13.7 million, up 83.4% from $7.5 million in 2009. Operating expenses for 2010 totaled $6.4 million, up 155.2% from $2.5 million in the same period a year ago. The increase in operating expenses was primarily due to the full year's inclusion of revenues from the Company's Organic Products and Trade Finance Solutions divisions.

Earnings per share for the three months ended December 31, 2010 reached $0.45 ($0.43 on a fully diluted basis), compared to $0.51 ($0.50 on a fully diluted basis) for the three months ended December 31, 2009. Earnings per share for the fiscal year ended December 31, 2010 reached $1.43 ($1.35 on a fully diluted basis) compared to $0.95 ($0.93 on a fully diluted basis) for the same period last year.

As of December 31, 2010, cash and cash equivalents totaled $10.7 million, working capital totaled $12.8 million, and shareholders' equity was $42.1 million.

                        Three Months ended              Year ended
                           December 31,                December 31,
                    --------------------------  --------------------------
                        2010          2009          2010          2009
Revenues            $ 14,949,009  $ 13,448,044  $ 52,296,203  $ 22,073,219
Cost of sales          8,883,654     8,179,375    32,170,762    12,089,029
                    ------------  ------------  ------------  ------------
Gross profits          6,065,355     5,268,669    20,125,441     9,984,190
                    ------------  ------------  ------------  ------------
Operating expenses
  General and
   administrative
   expenses            1,596,041       187,960     5,291,908     1,110,991
  Research and
   development
   expenses               73,022       178,833       259,878       378,497
  Selling and
   marketing
   expenses              301,208       915,849       892,106     1,035,949
                    ------------  ------------  ------------  ------------
                       1,970,271     1,282,642     6,443,892     2,525,437
                    ------------  ------------  ------------  ------------
Income from
 operations            4,095,084     3,986,027    13,681,549     7,458,753
Other (expense)
 income                 (327,663)        2,040    (1,445,210)      (46,471)
                    ------------  ------------  ------------  ------------
Income before
 income taxes          3,767,421     3,988,067    12,236,339     7,412,282
Provision for
 income taxes         (1,066,453)   (1,114,903)   (3,281,163)   (2,027,309)
                    ------------  ------------  ------------  ------------
Net income             2,700,968     2,873,164     8,955,176     5,384,973
Non-controlling
 interest                 76,799      (172,415)     (278,564)     (612,159)
                    ------------  ------------  ------------  ------------
Net income
 attributable to
 Company            $  2,777,767  $  2,700,749  $  8,676,612  $  4,772,814
                    ============  ============  ============  ============
Earnings per share
  - Basic           $       0.45  $       0.51  $       1.43  $       0.95
                    ============  ============  ============  ============
  - Diluted         $       0.43  $       0.50  $       1.35  $       0.93
                    ============  ============  ============  ============
Weighted average
 number of shares
 outstanding :
  - Basic              6,056,057     5,011,925     6,056,057     5,011,925
                    ============  ============  ============  ============
  - Diluted            6,423,994     5,117,274     6,423,994     5,117,274
                    ============  ============  ============  ============

"Our fiscal 2010 results met our expectations. Asia's robust economic growth continues to fuel demand for our products, and we successfully added several new distributors in the Asian market during the fiscal year. Our strong organic growth, coupled with the impacts of two key acquisitions we completed in the third quarter of 2009, enabled us to deliver record results for fiscal 2010," stated Marius Silvasan, ONE's CEO. "In 2011, we remain focused on the continued execution of our business strategy, which calls for continued robust organic growth to be supplemented by key strategic acquisitions."

INVESTOR CALL AND WEBCAST

Friday, April 1st, 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: 4427566

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. Fourth Quarter and Fiscal 2010 Earnings Conference Call, or Conference ID 4427566. 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 April 1, 2011, until 11:59 p.m. EDT on April 15, 2011. The number for the replay is 877-870-5176, or 858-384-5517 for international calls; the pass code for the replay is 4427566. 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=00008365

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