SOURCE: ONE Bio, Corp.

August 16, 2011 08:00 ET

ONE Bio Releases Second Quarter 2011 Results

Second Quarter Revenue Increased to $13.3m, Gross Margin Increased to 45.5% and Net Income (Prior to a One-Time Charge) Increased to $3.0m

AVENTURA, FL--(Marketwire - Aug 16, 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, announces unaudited results for the second quarter and year-to-date (YTD) ended June 30, 2011. Summary of financial results include the following:

Revenue for the three months ended June 30, 2011 reached $13,339,367, compared to $12,679,797 for the three months ended June 30, 2010 (an increase of 5.2%), bringing revenue for the six months ended June 30, 2011 to $25,419,619 compared to $23,842,304 for the same period last year (an increase of 6.6%). YTD the Company experienced strong revenue growth from both of its core operating business units. Company's Chemical and Herbal Extract division ("CHE") sales increased by 26% while Company's Organic Products division ("OP") sales increased by 32%. This increase in sales was partly offset by a decrease in sales in our non-core third party financing business, which sales decrease was not as a result of loss of customers but rather an accounting change which focused the division's revenues towards transaction based fees with considerably higher gross margins.

Net income for the three months ended June 30, 2011 reached $2,435,689, compared to $2,349,393 for the three months ended June 30, 2010 (an increase of 3.7%), bringing net income for the six months ended June 30, 2011, to $4,835,910 compared to $3,986,468 for the same period last year (an increase of 21.3%). Company took during the three months ended June 30, 2011 a one-time non-reoccurring expense of $587,000. Removing the effects of this one-time charge Company's net income for the three months period ended June 30, 2011 reached $3,022,689, an increase of 28.7% versus the same period a year ago.

Gross profit for the three months ended June 30, 2011 was $6,073,223, as compared to $4,931,684 for the three months ended June 30, 2010, bringing gross profit for the six months period ended June 30, 2011 to $11,845,069 as compared to $9,039,395 for the same period a year ago. Gross margin was 45.5% compared to 38.9% for the second quarter of 2011, bringing gross margin to 46.6% for the six months period ended June 30, 2011 as compared to 37.9% for the same period a year ago. The increase in gross margin for the six months period ended June 30, 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 June 30, 2011 reached $3,938,241, an increase of 10.5% compared to $3,563,519 for the three months ended June 30, 2010, bringing operating income for the six months period ended June 30, 2011 to $7,663,366 as compared to $6,456,362 for the same period a year ago. Operating expenses for the second quarter of 2011 totaled $2,134,982 as compared to $1,368,165 in the same period a year ago, bringing operating expenses for the six months period ended June 30, 2011 to $4,181,703 as compared to $2,583,033 for the same period in 2010. 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 June 30, 2011 reached $0.35 ($0.33 on a fully diluted basis), compared to $0.40 ($0.34 on a fully diluted basis) for the three months ended June 30, 2010 bringing earnings per share for the six months ended June 30, 2011 to $0.71 ($0.66 on a fully diluted basis) compared to $0.67 ($0.58 on a fully diluted basis) for the same period last year.

As of June 30, 2011, cash and cash equivalents totaled $9.4 million, working capital totaled $14.9 million, and shareholders' equity was $46.3 million.

Three months ended June 30, Six months ended June 30,
2011 2010 2011 2010
Revenues $ 13,339,367 $ 12,679,797 $ 25,419,619 $ 23,842,304
Cost of sales 7,266,144 7,748,113 13,574,550 14,802,909
Gross profit 6,073,223 4,931,684 11,845,069 9,039,395
Operating expenses
General and administrative expenses 1,678,138 1,142,459 3,297,421 2,259,302
Research and development expenses 77,778 53,220 215,327 113,608
Selling and marketing expenses 379,066 172,486 668,955 210,123
2,134,982 1,368,165 4,181,703 2,583,033
Income from operations 3,938,241 3,563,519 7,663,366 6,456,362
Interest and financing expense (399,014 ) (175,181 ) (719,461 ) (374,290 )
Interest income 16,960 8,781 33,410 12,619
Other income (expense) 1,309 (196,595 ) 31,115 (360,723 )
Income before income taxes 3,557,496 3,200,524 7,008,430 5,733,968
Provision for income taxes (1,082,742 ) (801,685 ) (2,098,887 ) (1,504,200 )
Net income 2,474,754 2,398,839 4,909,543 4,229,768
Net income attributable to non-controlling interest (39,065 ) (49,446 ) (73,633 ) (243,300 )
Net income attributable to Company $ 2,435,689 $ 2,349,393 $ 4,835,910 $ 3,986,468
Earnings per share
-Basic $ 0.35 $ 0.40 $ 0.71 $ 0.67
-Diluted $ 0.33 $ 0.34 $ 0.66 $ 0.58

"Our second quarter 2011 results demonstrate the continued robust demand for our products in both of our two core business units," stated Marius Silvasan, ONE's CEO. "The new products we launched during 2010 helped boost our gross margin in the first six months of 2011 to 46.6% from 37.9% for the same period a year ago. The significant increase in gross margin validates our business model and the strategy we adopted in 2010. In 2010, 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, we turn our focus towards the launch of a variety of new over-the-counter health supplements as well as further expansion in the United States and Japan."

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:
    Marius Silvasan
    CEO
    Tel: +888.676.4445
    Email: msilvasan@onehcorp.com

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