BEIJING, May 12, 2014 /PRNewswire-FirstCall/ -- Yongye
International, Inc. (NASDAQ: YONG) ("Yongye" or the "Company"), a
leading developer, manufacturer, and distributor of crop nutrient
products in the People's Republic of
China ("PRC"), today announced its financial results for the
quarter ended March 31, 2014.
First Quarter 2014 Financial Highlights
- Revenue increased 236.5% to $152.3
million from $45.3 million in
the first quarter of 2013.
- Shipments of Yongye's agricultural nutrient products increased
293.6% to $172.0 million in the first
quarter of 2014 from $43.7 million in
the first quarter of 2013.
- Gross profit increased 154.5% year-over-year to $55.1 million.
- Income from operations increased 2,570.2% to $30.3 million from $1.1
million in the first quarter of 2013.
- Net income attributable to Yongye was $22.4 million, or $0.37 per diluted share, compared to a net loss
of $0.6 million, or a loss of
$0.03 per diluted share, in the same
period of 2013.
- Adjusted net income attributable to Yongye, which excludes
non-cash expense related to the amortization of the acquired
Hebei customer list, was
$23.1 million, or $0.38 per diluted share, compared to an adjusted
net income attributable to Yongye of $0.1
million, or a loss of $0.01
per diluted share, in the same period of 2013.*
- The Company collected $263.6
million from its distributors during the first quarter of
2014.
- Operating cash flow was $101.2
million, compared to $141.1
million in the same period of 2013.
Mr. Zishen Wu, Chairman and Chief Executive Officer of Yongye
International, stated, "The first quarter was highlighted by the
introduction of our new water soluble humic acid product, which
improves the soil structure and the ability of fertilizer and water
retention and enhances crop resistance against drought, freezing,
diseases, and stalk leaning. Based on how this product is used, the
first quarter represents peak season for the water soluble humic
acid product. Accordingly, the initial demand for the product was
quite strong as first quarter sales were $79.5 million, or 52.2% of total sales. While we
would not expect this level of sales for the remainder of the year
due to seasonality, this new water soluble humic acid product is a
complementary addition to our product portfolio, despite the
product carrying lower margins than our other products. Another
factor of the year over year growth in the first quarter of this
year is that we had a low-performing first quarter in 2013, with
significant decreases in revenue and shipments compared to the
first quarter of 2012."
Mr. Wu continued, "While China's macroeconomic growth prospects
remain unstable, we will continue to mitigate market risk with
strong execution. We are reiterating our previously provided 2014
guidance of total shipments in the range of $800 million to $850 million and the expansion of
our branded retailer network to 36,500 by year-end."
First Quarter 2014 Financial Results
Sales increased by $107.1 million,
or 236.5%, to $152.3 million in the
first quarter of 2014, from $45.3
million for the same period of 2013. The increase in revenue
was primarily due to the expansion of our business and the
introduction of the new water soluble humic acid product. In the
first quarter of 2014, $71.0 million,
or 46.6% of the total sales, were from liquid crop nutrient,
$79.5 million, or 52.2% of the total
sales, were from the new water soluble humic acid product, and
$1.8 million, or 1.2% of the total
sales, were from powder animal nutrient products. Of our liquid
crop nutrient products, the two products for crop seeds and roots
contributed $30.9 million, or 43.4%
of total liquid crop nutrient sales, while the regular crop
nutrient product contributed $40.1
million, or 56.6% of total liquid crop nutrient sales.
During the first quarter of 2014, the number of branded retailers
increased from 36,100 at the end of 2013 to 36,200.
Gross profit was $55.1 million in
the first quarter of 2014, compared to $21.6
million in the first quarter of 2013, an increase of 154.5%.
Gross margin was 36.1% in the first quarter of 2014, compared to
47.8% for the same period of 2013. The decrease in gross margin for
the three months ended March 31, 2014
was mainly due to the sale of the new water soluble humic acid
product, which has lower margins compared to other products.
Selling expenses increased by $0.5
million, or 3.2%, to $15.9
million in the first quarter of 2014, from $15.4 million for the same period of 2013. As a
percentage of sales, selling expenses decreased from 34.1% for the
three months ended March 31, 2013 to
10.5% for the same period of 2014. The decrease in selling expenses
as a percentage of sales was primarily due to the significant
increase in total sales in the first quarter of 2014, which was
driven largely by sales of the new water soluble humic acid
product.
General and administrative expenses were $4.1 million for the three months ended
March 31, 2014, consistent with the
same period of 2013.
Research and development ("R&D") expenses were $4.7 million in the first quarter of 2014,
compared to $1.0 million for the same
period of 2013. The R&D expenses mainly consisted of field
testing expenses for existing and new products on different crops
and in various geographic markets.
Operating income was $30.3 million
in the first quarter of 2014, compared to $1.1 million for the same period of 2013.
Excluding non-cash expense related to the amortization of the
acquired Hebei customer list,
first quarter 2014 adjusted operating income was $31.1 million, or 20.4% of sales.* The increase
in operating income was mainly due to the significant increases in
sales and gross profit.
Net income attributable to Yongye was $22.4 million, or $0.37 per diluted share, in the first quarter of
2014, compared to a net loss of $0.6
million, or a loss of $0.03
per diluted share, in the same period of 2013. Excluding the impact
of non-cash expense related to the amortization of the acquired
Hebei customer list, adjusted net
income attributable to Yongye for the first quarter of 2014 was
$23.1 million, or $0.38 per diluted share, compared to adjusted net
income of $0.1 million, or a loss of
$0.01 per diluted share in the same
period of 2013.*
(*) See the table following this press release for a
reconciliation of gross profit, income from operations, net income
and diluted EPS to exclude non-cash item related to the
amortization of the acquired Hebei
customer list to the comparable financial measure prepared
in accordance with US Generally Accepted Accounting Principles
("U.S. GAAP").
Financial Condition
Balance Sheet and Cash Flow
As of March 31, 2014, the Company had $246.4 million in cash and restricted cash,
compared to $123.8 million as of
December 31, 2013. Working capital
was $616.0 million, compared to
$594.6 million at the end of 2013.
The Company had a $138.7 million
short-term bank loan and $10.3
million in long-term debt as of March
31, 2014. Stockholders' equity totaled $649.0 million as of March
31, 2014, compared to $632.9
million at the end of 2013. Cash flow provided by operating
activities were $101.2 million and
$141.1 million for the three months
ended March 31, 2014 and 2013,
respectively. The positive cash flow in the first quarter of 2014
was primarily driven by collection of accounts receivable, but was
partially offset by the increase in deposit to suppliers. Other
factors include net income of $23.6
million for the period.
Accounts Receivable
Accounts receivable decreased by
$144.9 million from the end of 2013,
which was mainly due to the collection of accounts receivable
during the first quarter of 2014. During the first quarter of 2014,
the Company collected $263.6 million
from its distributors, including $248.8
million of the accounts receivable outstanding at
December 31, 2013. As of March 31, 2014, the amount of gross accounts
receivable outstanding was $198.4
million, of which $44.9
million was past the Company's six-month credit period.
Yongye recorded an allowance for doubtful receivables in the amount
of $9.2 million as of March 31, 2014, taking into account current
market conditions, customers' financial condition, the accounts
receivable ageing and the customers' repayment patterns. The
Company continues to take measures to increase collection efforts
and closely monitor its distributors' financial status.
Recent Developments
Expansion of Branded Retailer Network
The Company
continued the expansion of its branded retailers from 36,100 as of
December 31, 2013 to 36,200 as of
March 31, 2014. The majority of the
Company's newly recruited branded retailers are located in
Guangdong, Hainan, Xinjiang, Inner Mongolia, and
Hebei/Beijing/Tianjin provinces. The Company remains focused
on expanding its distribution networks and deepening its
penetration in both new and traditional markets.
Update on Going-Private Proposal
On September 23, 2013, the Company entered into an
agreement and plan of merger (the "Original Merger Agreement") with
Full Alliance International Limited, a British Virgin Islands company ("Holdco"),
Yongye International Limited, an exempted company with limited
liability incorporated under the laws of the Cayman Islands and a wholly-owned subsidiary
of Holdco ("Parent"), and Yongye International Merger Sub Limited,
a Nevada corporation and a
wholly-owned subsidiary of Parent ("Merger Sub", together with the
Company, Holdco and Parent, the "Parties" and any one of them a
"Party"). Pursuant to the Original Merger Agreement, upon the terms
and subject to the conditions thereof, at the effective time of the
merger, Merger Sub will be merged with and into the Company, the
Company will become a wholly-owned subsidiary of Parent and each of
the Company's shares of common stock (the "Shares") issued and
outstanding immediately prior to the effective time of the merger
will be converted into the right to receive US$ 6.69 in cash without interest, except for (i)
Shares owned by Holdco, Parent and Merger Sub, including Shares and
preferred shares to be contributed to Parent by Holdco, Mr. Zishen
Wu, Prosper Sino Development Limited and MSPEA, immediately prior
to the effective time of the merger pursuant to a contribution
agreement, dated as of September 23,
2013, among Parent, Holdco, Mr. Zishen Wu, Prosper Sino
Development Limited and MSPEA (except that, with respect to
Prosper Sino, only such shares
designated as "Prosper Sino rollover
shares" in the definitive proxy statement in connection with the
special meeting of stockholders held for the purposes of approving
the Original Merger Agreement will be contributed), and (ii) Shares
held by the Company or any subsidiary of the Company ((i) and (ii)
collectively, the "Excluded Shares"), which will be cancelled for
no consideration and cease to exist as of the effective time of the
merger. Currently, Holdco, Mr. Zishen Wu, Prosper Sino Development
Limited and MSPEA, collectively beneficially own approximately
33.8% of the Company's outstanding Shares, on an as converted
basis.
On March 5, 2014, a special
meeting of stockholders was held, and the proposal to approve the
Original Merger Agreement did not receive approval from holders of
at least a majority of the issued and outstanding Shares (other
than the Excluded Shares). The Original Merger Agreement was
therefore not approved by our stockholders.
On April 9, 2014, the Company
announced that it has entered into an amendment (the "Amendment")
to the Original Merger Agreement (the Original Merger Agreement as
so amended, the "Amended Merger Agreement"). The Amendment follows
the revised "going private" proposal to increase the merger
consideration under the Original Merger Agreement and revise the
stockholders' approval requirement of the Original Merger
Agreement. Pursuant to the Amendment, the merger consideration
payable to holders of Shares, other than the Excluded Shares, has
been increased from $6.69 per Share
to $7.10 per Share. In return for the
increased value to holders of Shares (other than the Excluded
Shares), the stockholder voting requirement relating to the
approval of holders of Shares (other than the Excluded Shares) has
been modified such that the Amended Merger Agreement will require
approval by the affirmative vote of the holders of at least a
majority of the issued and outstanding Shares (other than the
Excluded Shares) that are present in person or by proxy and vote
for or against approval of the Amended Merger Agreement at the
special stockholders' meeting to be held to approve the Amended
Merger Agreement, rather than the prior requirement of the
affirmative vote of the holders of at least a majority of the
issued and outstanding Shares (other than the Excluded Shares).
On April 30, 2014, the Company
announced that it has established the close of business on
May 5, 2014 as the record date for
its special meeting of stockholders entitled to receive notice of
and to vote at its upcoming special meeting of stockholders on the
proposal to approve the Amended Merger Agreement.
On May 5, 2014, the Company
announced that it has established June 6,
2014 as the meeting date for its special meeting of
stockholders. In connection with the special meeting of
stockholders to be held to approve the Amended Merger Agreement,
the Company filed a definitive proxy statement on Schedule 14A with
the SEC on May 2, 2014, together with
a Schedule 13E-3 transaction statement with the SEC. The Company
has mailed a copy of the definitive proxy statement and Schedule
13E-3 transaction statement to its stockholders of record.
If the merger is completed, the Company will cease to be a
publicly traded company.
Business Outlook
According to the Company's revenue recognition policy, certain
distributors' revenue is being recognized on a cash basis rather
than a shipment basis. As a result, the Company is not in a
position to predict with specificity what its revenue will be until
cash collection is completed. As such, to provide further clarity
for investors, Yongye will continue to provide expectations on
shipments, a metric that is not impacted by the revenue recognition
issue mentioned above.
The Company continues to expect total shipments in 2014 to be in
the range of $800 million to $850
million, representing a growth of 20.8% to 28.4% over 2013.
The Company also continues to expect that its branded retailer
network will be expanded to 36,500 by the end of 2014, which
represents a 1.1% increase over the 2013 year-end number of
36,100.
Conference Call
The Company will host a conference call at 8:30 a.m. Eastern Time on May 12, 2014, to discuss its first quarter 2014
results.
To participate in the live conference call, please dial the
following number five to ten minutes prior to the scheduled
conference call time: +1 (855) 298-3404. International callers
should dial +1 (631) 514-2526. The conference pass code is
7399397.
For those who are unable to participate on the live conference
call, a replay will be available for fourteen days starting from
11:30 a.m. Eastern Time on
May 12 to 11:59 p.m. Eastern Time on
May 26. To access the replay, please
dial +1 (866) 846-0868. International callers should dial +61 (2)
9641-7900. The replay pass code is 7399397. A webcast recording of
the conference call will be accessible through Yongye's website at
www.yongyeintl.com.
Use of Non-GAAP Financial Measures
GAAP results for the three months ended March 31, 2014 and 2013 include non-cash item
related to the amortization of the acquired Hebei customer list. To supplement the
Company's condensed consolidated financial statements presented on
a U.S. GAAP basis, the Company has provided adjusted financial
information excluding the impact of these items in this release.
Such adjustment is a departure of U.S. GAAP; however, the Company's
management believes that these adjusted measures provide investors
with a better understanding of how the results relate to the
Company's historical performance. These adjusted measures should
not be considered an alternative to net income, or any other
measure of financial performance or liquidity presented in
accordance with U.S. GAAP. These measures are not necessarily
comparable to a similarly titled measure of another company. A
reconciliation of the adjustments to U.S. GAAP results appears in
the table accompanying this press release. This additional adjusted
information is not meant to be considered in isolation or as a
substitute for U.S. GAAP financials. The adjusted financial
information that the Company provides also may differ from the
adjusted information provided by other companies.
About Yongye International, Inc.
Yongye International, Inc. is a leading crop nutrient company
headquartered in Beijing, with its
production facilities located in Hohhot, Inner Mongolia,
China. Yongye's principal product
is a liquid crop nutrient, from which the Company derived
substantially all of the sales in 2013. The Company also produces
powder animal nutrient product which is mainly used for dairy cows.
Both products are sold under the trade name "Shengmingsu," which
means "life essential" in Chinese. The Company's patented formula
utilizes fulvic acid as the primary compound base and is combined
with various micro and macro nutrients that are essential for the
health of the crops. The Company sells its products primarily to
provincial level distributors, who sell to the end-users either
directly or indirectly through county-level and village-level
distributors. For more information, please visit the Company's
website at www.yongyeintl.com.
Safe Harbor Statement
This press release contains certain statements that may include
"forward-looking statements." All statements other than statements
of historical fact included herein are "forward-looking
statements." These forward-looking statements are often identified
by the use of forward-looking terminology such as "believes,"
"expects" or similar expressions, involving known and unknown risks
and uncertainties. Although the Company believes that the
expectations reflected in these forward-looking statements are
reasonable, they do involve assumptions, risks and uncertainties,
and these expectations may prove to be incorrect. You should not
place undue reliance on these forward-looking statements, which
speak only as of the date of this press release. The Company's
actual results could differ materially from those anticipated in
these forward-looking statements as a result of a variety of
factors, including the risk factors discussed in the Company's
periodic reports that are filed with the Securities and Exchange
Commission and available on the SEC's website (http://www.sec.gov).
All forward-looking statements attributable to the Company or
persons acting on its behalf are expressly qualified in their
entirety by these risk factors. Other than as required under the
securities laws, the Company does not assume a duty to update these
forward-looking statements.
Contacts
Yongye International
Ms. Rain Xia
Phone: +86-10-8231-9608
E-mail: ir@yongyeintl.com
FTI Consulting
Mr. John
Capodanno (U.S. Contact)
Phone: +1-212-850-5705
E-mail: john.capodanno@fticonsulting.com
Ms. May Shen (China Contact)
Phone: +86 10 8591 1951
E-mail: may.shen@fticonsulting.com
(Financial Tables to Follow)
YONGYE
INTERNATIONAL, INC. AND SUBSIDIARIES
|
CONSOLIDATED
BALANCE SHEETS
|
|
|
|
|
|
|
|
March 31, 2014
|
|
December 31, 2013
|
Current
assets
|
|
|
|
Cash
|
$
|
246,313,107
|
|
$
|
123,728,435
|
Restricted
cash
|
|
40,000
|
|
|
40,000
|
Accounts receivable,
net of allowance for doubtful accounts
|
|
189,220,666
|
|
|
334,141,280
|
Inventories
|
|
288,993,740
|
|
|
251,372,750
|
Deposits to
suppliers
|
|
81,796,269
|
|
|
54,400,166
|
Perpaid
expenses
|
|
33,846,770
|
|
|
573,563
|
Other
receivables
|
|
1,130,028
|
|
|
1,427,845
|
Deferred tax
assets
|
|
11,707,671
|
|
|
12,615,399
|
Total Current
Assets
|
|
853,048,251
|
|
|
778,299,438
|
|
|
|
|
|
|
Property, plant and
equipment, net
|
|
23,008,498
|
|
|
23,675,240
|
Intangible assets,
net
|
|
15,629,846
|
|
|
16,553,035
|
Land use right,
net
|
|
4,783,025
|
|
|
4,862,877
|
Prepayment for mining
project
|
|
36,636,812
|
|
|
37,035,215
|
Distributor
vehicles
|
|
33,144,126
|
|
|
36,133,400
|
Total
Assets
|
$
|
966,250,558
|
|
$
|
896,559,205
|
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
|
Short-term bank
loans
|
$
|
138,726,636
|
|
$
|
115,632,535
|
Long-term loans and
payables - current portion
|
|
7,324,721
|
|
|
8,738,965
|
Capital lease
obligations - current portion
|
|
245,811
|
|
|
220,018
|
Accounts
payable
|
|
37,996,495
|
|
|
8,137,337
|
Income tax
payable
|
|
28,211,756
|
|
|
26,612,792
|
Advance from
customers
|
|
1,392,563
|
|
|
606,423
|
Accrued
expenses
|
|
18,545,804
|
|
|
19,465,163
|
Other
payables
|
|
4,585,595
|
|
|
4,271,519
|
|
|
|
|
|
|
Total Current
Liabilities
|
|
237,029,381
|
|
|
183,684,752
|
|
|
|
|
|
|
Long-term loans and
payables
|
|
9,423,185
|
|
|
8,593,469
|
Capital lease
obligations - non-current
|
|
871,475
|
|
|
834,713
|
Other non-current
liability
|
|
10,283,630
|
|
|
10,395,458
|
Deferred tax
liabilities
|
|
4,971,619
|
|
|
5,410,240
|
Total
Liabilities
|
$
|
262,579,290
|
|
$
|
208,918,632
|
|
|
|
|
|
|
Redeemable Series A
convertible preferred shares: par value $.001;
7,969,044 shares authorized; 6,505,113 shares issued and
outstanding
as of March 31, 2014 and December 31, 2013, respectively
|
$
|
54,713,640
|
|
$
|
54,713,640
|
|
|
|
|
|
|
Equity
|
|
|
|
|
|
Common stock: par
value $.001; 75,000,000 shares authorized;
50,685,216 shares issued and outstanding at March 31, 2014 and
December 31, 2013, respectively
|
$
|
50,685
|
|
$
|
50,685
|
Additional paid-in
capital
|
|
155,265,347
|
|
|
155,265,347
|
Retained
earnings
|
|
430,399,588
|
|
|
408,015,540
|
Accumulated other
comprehensive income
|
|
31,458,425
|
|
|
38,674,997
|
Total equity
attributable to Yongye International, Inc.
|
|
617,174,045
|
|
|
602,006,569
|
Noncontrolling
interest
|
|
31,783,583
|
|
|
30,920,364
|
Total
Equity
|
$
|
648,957,628
|
|
$
|
632,926,933
|
Commitments and
Contingencies
|
|
-
|
|
|
-
|
|
|
|
|
|
|
Total Liabilities,
Redeemable Series A Convertible Preferred Shares and
Equity
|
$
|
966,250,558
|
|
$
|
896,559,205
|
YONGYE
INTERNATIONAL, INC. AND SUBSIDIARIES
|
CONSOLIDATED
STATEMENTS OF COMPREHENSIVE INCOME
|
|
|
|
|
|
|
|
For the Three Months
Ended
|
|
March 31,
2014
|
|
March 31,
2013
|
Sales
|
$
|
152,322,090
|
|
$
|
45,268,520
|
Cost of
sales
|
|
97,271,957
|
|
|
23,636,421
|
Gross
profit
|
|
55,050,133
|
|
|
21,632,099
|
Selling
expenses
|
|
15,930,657
|
|
|
15,435,060
|
Research and
development expenses
|
|
4,738,954
|
|
|
991,670
|
General and
administrative expenses
|
|
4,063,488
|
|
|
4,069,972
|
Income from
operations
|
|
30,317,034
|
|
|
1,135,397
|
Other
(expenses)/income
|
|
|
|
|
|
Interest
expenses
|
|
(2,195,739)
|
|
|
(1,866,378)
|
Interest
income
|
|
8,941
|
|
|
165,758
|
Other expenses,
net
|
|
(161,054)
|
|
|
(64,336)
|
Total other expenses,
net
|
|
(2,347,852)
|
|
|
(1,764,956)
|
Earnings/(losses)
before income tax expense
|
|
27,969,182
|
|
|
(629,559)
|
Income tax
expense/(benefit)
|
|
4,357,382
|
|
|
(5,079)
|
Net
income/(loss)
|
|
23,611,800
|
|
|
(624,480)
|
Less: Net
income/(loss) attributable to the
noncontrolling interest
|
|
1,227,752
|
|
|
(11,908)
|
Net income/(loss)
attributable to Yongye International, Inc.
|
$
|
22,384,048
|
|
$
|
(612,572)
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income/(loss) per
share of common stock
|
|
|
|
|
|
Basic
|
$
|
0.37
|
|
$
|
(0.03)
|
Diluted
|
$
|
0.37
|
|
$
|
(0.03)
|
Weighted average
shares used in computation:
|
|
|
|
|
|
Basic
|
|
50,685,216
|
|
|
50,669,880
|
Diluted
|
|
50,685,216
|
|
|
50,669,880
|
|
|
|
|
|
|
Net
income/(loss)
|
|
23,611,800
|
|
|
(624,480)
|
Other comprehensive
income
|
|
|
|
|
|
Foreign currency
translation adjustment, net of US$ nil
income taxes
|
|
(7,581,105)
|
|
|
2,663,236
|
|
|
|
|
|
|
Comprehensive
income
|
|
16,030,695
|
|
|
2,038,756
|
Less: Comprehensive
income attributable to the noncontrolling interest
|
|
863,219
|
|
|
114,080
|
Comprehensive income
attributable to Yongye International, Inc.
|
$
|
15,167,476
|
|
$
|
1,924,676
|
YONGYE
INTERNATIONAL, INC. AND SUBSIDIARIES
|
CONSOLIDATED
STATEMENTS OF CASH FLOWS
|
|
|
|
|
|
|
|
For the Three
Months Ended
|
|
March 31, 2014
|
|
March 31, 2013
|
CASH FLOWS FROM
OPERATING ACTIVITIES
|
|
|
|
Net
income/(loss)
|
$
|
23,611,800
|
|
$
|
(624,480)
|
Adjustments to
reconcile net income/(loss) to net cash provided by
operating activities:
|
|
|
|
|
|
Depreciation and
amortization
|
|
4,414,538
|
|
|
4,345,695
|
Amortized interest
expense
|
|
-
|
|
|
331,335
|
Gain on sale of property, plant and equipment
|
|
(7,535)
|
|
|
-
|
Deferred tax
expense/(benefit)
|
|
303,601
|
|
|
(297,094)
|
Changes in operating
assets and liabilities:
|
|
|
|
|
|
Accounts
receivable
|
|
142,377,226
|
|
|
181,025,679
|
Inventories
|
|
(40,625,022)
|
|
|
(21,484,206)
|
Deposit to
suppliers
|
|
(28,148,551)
|
|
|
821,150
|
Prepaid
expenses
|
|
(33,526,867)
|
|
|
62,851
|
Other
receivables
|
|
92,784
|
|
|
320,144
|
Distributor
Vehicles
|
|
(138,892)
|
|
|
50,165
|
Accounts payable-
third parties
|
|
30,185,768
|
|
|
(3,446,833)
|
Income tax
payable
|
|
2,092,260
|
|
|
292,015
|
Advance from
customers
|
|
798,559
|
|
|
7,960
|
Accrued
expenses
|
|
(726,879)
|
|
|
(20,375,053)
|
Other
payables
|
|
467,014
|
|
|
115,944
|
Net Cash Provided
by Operating Activities
|
|
101,169,804
|
|
|
141,145,272
|
|
|
|
|
|
|
CASH FLOWS FROM
INVESTING ACTIVITIES
|
|
|
|
|
|
Purchase of property,
plant and equipment
|
|
(83,837)
|
|
|
(502,297)
|
Net Cash Used in
Investing Activities
|
|
(83,837)
|
|
|
(502,297)
|
|
|
|
|
|
|
CASH FLOWS FROM
FINANCING ACTIVITIES
|
|
|
|
Proceeds from
short-term bank loans
|
|
24,519,019
|
|
|
-
|
Repayment of
long-term loans and payables
|
|
(712,385)
|
|
|
(1,202,053)
|
Proceeds from
warrants exercised
|
|
-
|
|
|
125,014
|
Repayment for capital
lease obligations
|
|
(55,640)
|
|
|
(71,220)
|
Net Cash Provided
by/(Used in) Financing Activities
|
|
23,750,994
|
|
|
(1,148,259)
|
EFFECT OF FOREIGN
EXCHANGE RATE CHANGES ON CASH
|
|
(2,252,289)
|
|
|
389,711
|
NET INCREASE IN
CASH
|
|
122,584,672
|
|
|
139,884,427
|
Cash at beginning
of period
|
|
123,728,435
|
|
|
44,511,404
|
Cash at end of
period
|
$
|
246,313,107
|
|
$
|
184,395,831
|
|
|
|
|
|
|
Supplemental cash
flow information:
|
|
|
|
|
|
Cash paid for income
taxes
|
|
1,961,521
|
|
|
-
|
Cash paid for
interest expense
|
|
1,596,535
|
|
|
1,529,429
|
|
|
|
|
|
|
Noncash investing and
financing activities:
|
|
|
|
|
|
Acquisition of
property, plant and equipment under capital leases
|
|
130,091
|
|
|
331,434
|
Acquisition of
distributor vehicles by assuming long-term loans and
payables
|
|
311,348
|
|
|
816,126
|
Acquisition of
property, plant and equipment included in other payables
|
|
243,666
|
|
|
972,282
|
Exercise of warrants
that were liability classified
|
|
-
|
|
|
348,364
|
YONGYE
INTERNATIONAL, INC. AND SUBSIDIARIES
|
RECONCILIATION OF
NON-GAAP FINANCIAL DATA
|
|
|
|
|
Gross
Profit
|
|
Three Months Ended
March 31,
|
|
2014
|
2013
|
|
|
|
GAAP amount per
consolidated statement of income
|
$55,050,133
|
$21,632,099
|
Amortization of the
acquired Hebei customer list
|
$747,692
|
$728,206
|
Adjusted
Amount
|
$55,797,825
|
$22,360,305
|
|
|
|
|
Income from
Operations
|
|
Three Months Ended
March 31,
|
|
2014
|
2013
|
|
|
|
GAAP amount per
consolidated statement of income
|
$30,317,034
|
$1,135,397
|
Amortization of the
acquired Hebei customer list
|
$747,692
|
$728,206
|
Adjusted
Amount
|
$31,064,726
|
$1,863,603
|
|
|
|
|
Net
income/(loss)
(attributable to Yongye)
|
|
Three Months Ended
March 31,
|
|
2014
|
2013
|
|
|
|
GAAP amount per
consolidated statement of income
|
$22,384,048
|
($612,572)
|
Amortization of the
acquired Hebei customer list
|
$747,692
|
$728,206
|
Adjusted
Amount
|
$23,131,740
|
$115,634
|
Weighted average
shares -- diluted
|
50,685,216
|
50,669,880
|
Adjusted diluted
earnings per share
|
$0.38
|
($0.01)
|
SOURCE Yongye International, Inc.