LAIYANG, China, May 17 /PRNewswire-Asia-FirstCall/ -- Jiangbo Pharmaceuticals, Inc. (OTC Bulletin Board: JGBO) ("Jiangbo" or the "Company"), a pharmaceutical company with its principal operations in the People's Republic of China, today announced financial results for the third quarter fiscal year 2010 ended March 31, 2010.
Third Quarter Highlights -- Revenue was $25.6 million, a slight decrease of 0.6% year-over-year -- Gross profit was $18.6 million, as compared to $18.9 million, and gross margin was 72.7%, as compared to 73.4% in the year ago quarter -- Operating income rose 3.1% to $13.7 million -- GAAP net income was $15.2 million, or $1.33 per basic share, compared $8.9 million or $0.86 per basic share a year ago -- Excluding loss from discontinued operation, non-cash gain or loss related to the change in fair value of derivative liabilities, unrealized gain or loss on trading securities, and amortization expenses for debt discount and financing cost, non-GAAP adjusted net income was $7.7 million, or $0.50 per diluted share, as compared to non-GAAP adjusted net income of $10.1 million, or $0.68 per diluted share.
"Our third quarter operating income returned to growth as a result of strengthened sales effort and improved operational efficiency stemming from our continued cost control efforts," said Jiangbo's Chairman and CEO, Mr. Wubo Cao. "Sales of several of our key products, including Clarithromycin sustained-release and Radix Isatidis, experienced strong year-over-year growth and reflected the recent reinforcement of our sales effort and distribution channels. We continue to evaluate strategic opportunities to cost-effectively market our key products to deliver organic revenue growth in future quarters."
Third Quarter Fiscal Year 2010 Results
Total revenue for the three months ended March 31, 2010 was $25.6 million, compared to $25.7 million for the three months ended March 31, 2009. Sales volume for Clarithromycin sustained-released tablets grew 23.0% year-over-year as a result of the Company's reinforced sales efforts and tighter management of its distribution channels. Similarly, sales volume for Radix Isatidis dispersible tablets rose 44.7% over the prior year quarter. Strong sales growth of these two products was offset by a decline in sales volume for Itopride Hydrochloride granules and Baobaole chewable tablets, which were down 10.8% and 35.9%, respectively. Itopride and Baobaole continued to experience competition from similar products, including some that are included in the National Basic Medical Insurance Catalog. As the sales growth of OTC drugs, such as Baobaole chewable tablets and Radix Isatidis dispersible tablets, require continued support through advertising and promotion, management is evaluating the appropriate investment in TV advertising to drive the sales.
Gross profit in the third quarter was $18.6 million, as compared to $18.6 million in the prior year period. Gross margin decreased to 72.7% from 73.4%, primarily due to changes in the sales of product mix.
Selling, general and administrative expenses were $3.8 million for the three months ended March 31, 2010, down 15.1% from $4.5 million in the prior year period and primarily reflected the Company's more effective cost control efforts. Year-over-year spending reduction stemmed primarily from lower advertising, marketing and promotion, as well as salaries, wages and related benefits.
Research and development expenses totaled $1.1 million, consistent with those in the prior year period. The Company is obligated to make monthly payment to the designated university/institute to support two cooperative research and development agreements which were signed in fiscal 2008.
Income from operations rose 3.1% to $13.7 million from $13.3 million, primarily reflecting lower year-over-year operating expenses.
Other income was $5.0 million, as compared to other expenses of $1.1 million for the three months ended March 31, 2009. The increase was mainly due to an $11.6 million non-cash gain related to the change in the fair value of derivative liabilities, partly offset by $6.6 million interest expenses and non-cash amortization expense related to debt discount and debt issuance costs related to the convertible debentures, as compared to $1.2 million in the third quarter of 2009.
GAAP net income for the three months ended March 31, 2010 was $15.2 million, as compared to $8.9 million in the year ago quarter. Basic earnings per share (EPS) were $1.33, compared with $0.86 a year ago. Diluted EPS assumes the conversion of the Company's convertible notes and is calculated by adding interest expenses to and deducting the unamortized loan issuance costs and debt discount from net income. As a result, the Company recorded earnings of $0.02 per diluted share, as compared to a loss of $1.49 per diluted share in the same quarter last year.
Excluding loss from discontinued operation, non-cash gain or loss related to the change in fair value of derivative liabilities, unrealized gain or loss on trading securities, and amortization expenses for debt discount and financing cost, non-GAAP adjusted net income was $7.7 million, or $0.50 per diluted share, as compared to non-GAAP adjusted net income of $10.0 million, or $0.68 per diluted share a year ago.
Nine Month Results
Total revenue for the nine month period ended March 31, 2010 was $68.1 million, down 21.0% from $86.2 million for the nine month period ended March 31, 2009. The decrease was primarily due to a 26% average per unit sales price reduction year-over-year for Clarithromycin sustained-released tablets, Itopride Hydrochloride granules and Baobaole chewable tables during the first six months of fiscal year 2010, following restructuring of the Company's sales network in January 2009.
Gross profit totaled $50.2 million, down 24.4% from $66.5 million in the prior year period, representing a gross profit margin of 73.7%. Operating income was $33.5 million, a 4.6% increase year-over-year from $32.1 million last year.
GAAP net income was $22.7 million, or $2.07 basic EPS, as compared to $17.4 million, or $1.75 basic EPS in the corresponding period in 2009. Diluted EPS was $0.57 per share, as compared to a loss of $0.86 per share in the year ago period.
Excluding loss discontinued operation, non-cash gain or loss related to the change in fair value of derivative liabilities, unrealized gain or loss on trading securities, and amortization expenses for debt discount and financing costs, non-GAAP adjusted net income was $21.2 million, or $1.39 per fully diluted share for the nine months ended March 31, 2010, compared to non-GAAP adjusted net income of $23.5 million, or $1.64 per fully diluted share, for the nine months ended March 31, 2009.
As of March 31, 2010, the Company had $96.5 million in cash and an additional $11.5 million in restricted cash, as compared to $104.4 million and $7.3 million, respectively, at the end of fiscal 2009. The decrease was mainly due to the late 2009 purchase of land use rights for a large parcel of land near Laiyang Jiangbo Pharmaceuticals for $17 million for future factory expansion. Working capital was $77.7 million at March 31, 2010 and $99.8 million at June 30, 2009.
Shareholder's equity was $124.2 million, as compared to $126.1 million at the end of fiscal 2009. The decrease in shareholder's equity was the result of the reclassification of the Company's derivative instruments from equity to liability. The Company generated $8.5 million in cash flows from operating activities in the first nine months of fiscal 2010.
The Company has continued a dialogue with holders of its November 2007 Notes and May 2008 Notes to find a mutually agreeable resolution regarding the delinquent interest payments. Jiangbo became delinquent on the payment of the interests due on the November 2007 Notes and May 2008 Notes due to continued delays in its ability to transfer cash out of the People's Republic of China (PRC). Pursuant to a certain Letter Agreement dated February 15, 2010 with holders of the November 2007 Notes and May 2008 Notes, the holders of such Notes had agreed to waive the outstanding default under the Notes as a result of the Company's failure to make timely interest payments on the Notes provided that the Company made the delinquent interest payments by February 25, 2010, and to date, remains unable to make these payments. Currently, $4.0 million aggregate principal amount of the November 2007 Notes and $22.9 million aggregate principal amount of the May 2008 Notes remains outstanding.
Guidance and Corporate Update
"We recognize the need to expand our commercial product portfolio and build a strong R&D pipeline to create sustainable long-term growth," added Mr. Cao. "As we continue to evaluate the best deployment of our cash for strategic product acquisition and licensing deals, we expect to continue improving our operational efficiency and to strengthen our operational management team to accelerate that effort."
The Company is maintaining its fiscal 2010 revenue guidance of $96 million to $98 million and operating income guidance of $42 million to $44 million. Management expects to continue to deploy its policy of engaging in cost-effective marketing of select key drugs and improving operational efficiency in the fourth quarter of fiscal 2010.
Renovation at the Hongrui's factory is continuing and is now expected to finish by early July 2010. The Company has increased the scope of this project to include additional repairs and upgrades to ensure the production facilities will, similar to the existing Jiangbo facility, conform to GMP standards.
With $96.5 million in cash, Jiangbo continues to actively evaluate opportunities to in-license or acquire new branded drugs with sustainable long-term growth potential.
Jiangbo Pharmaceuticals, Inc. management will host a conference call on Monday, May 17, 2010 at 7:00 a.m. Eastern Time to discuss financial results for the third quarter ended March 31, 2010. The conference call will include Mr. Wubo Cao, Chairman and CEO, and Ms. Elsa Sung, CFO, of Jiangbo. To participate in the live conference call, please dial the following number five to ten minutes prior to the scheduled conference call time: (877) 762-9219. International callers should dial +1 (706) 758 - 5465. The Conference ID for this call is 74532345.
If you are unable to participate in the call at this time, a replay will be available for 14 days starting on Monday, May 17, 2010 at 9:00 a.m. Eastern Time. To access the replay, dial (800) 642-1687, international callers dial (706) 645-9291. Conference ID is 74532345.
Use of Non-GAAP Adjusted Financial Information
This press release includes certain financial information, non-GAAP adjusted net income and non-GAAP adjusted fully diluted earnings per share, which are not presented in accordance with GAAP. Non-GAAP adjusted net income was derived by taking net income and adjusting it with non-cash gains or losses related to the change in fair value from derivative liabilities and the amortization of debt discount and debt issuance costs related to convertible debentures. The Company's management believes that these non-GAAP adjusted measures provide investors with a better understanding of the Company's historical results from its core business operations. To supplement the Company's condensed consolidated financial statements presented on a non-GAAP adjusted basis, the Company has provided non-GAAP adjusted financial information, which is non-GAAP adjusted net income and non-GAAP adjusted earnings per share, excluding the impact of these items in this press release. The non-GAAP adjusted information is not meant to be considered in isolation or as a substitute for GAAP financials. The non-GAAP adjusted financial information provided by the Company may also differ from non-GAAP adjusted information provided by other companies. A table at the end of this press release provides a reconciliation of the non-GAAP adjusted financial information to the nearest GAAP measure.
About Jiangbo Pharmaceuticals, Inc.
Jiangbo Pharmaceuticals, Inc. is a U.S. public company engaged in the research, development, production, marketing and sales of pharmaceutical products in the People's Republic of China. Its operations are located in Eastern China in an Economic Development Zone in Laiyang City, Shandong province. Jiangbo is a major pharmaceutical company in China producing both western and Chinese herbal-based medical drugs in tablet, capsule, granule, syrup and electuary (sticky syrup) form. http://www.jiangbopharma.com .
Safe Harbor Statement
Certain statements in this press release that are not historical facts are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements are not guarantees of future performance and are subject to risks and uncertainties that could cause the Company's actual results and financial position to differ materially from those included within the forward-looking statements. Forward-looking statements involve risks and uncertainties, including those relating to the Company's ability to introduce, manufacture and distribute new drugs, improve operational efficiency, in-license or acquire new drugs, make required interest payment and NASDAQ listing. Actual results may differ materially from predicted results, and reported results should not be considered as an indication of future performance. The potential risks and uncertainties include, among others, the Company's ability to obtain raw materials needed in manufacturing, the continuing employment of key employees, the failure risks inherent in testing any new drug, the possibility that regulatory approvals may be delayed or become unavailable, patent or licensing concerns that may include litigation, direct competition from other manufacturers and product obsolescence. More information about the potential factors that could affect the Company's business and financial results is included in the Company's filings, available via the United States Securities and Exchange Commission.
- Financial Statements Follow - JIANGBO PHARMACEUTICALS, INC. AND SUBSIDIARIES (FORMERLY KNOWN AS GENESIS PHARMACEUTICAL ENTERPRISES, INC.) CONSOLIDATED BALANCE SHEETS March 31, June 30, 2010 2009 (Unaudited) ASSETS CURRENT ASSETS: Cash $96,464,482 $104,366,117 Restricted cash 11,523,285 7,325,000 Investments 26,362 879,228 Accounts receivable, net of allowance for doubtful accounts of $1,141,756 and $822,469 as of March 31, 2010 and June 30, 2009, respectively 27,619,639 19,222,707 Inventories 3,368,308 3,277,194 Other receivables 12,523 167,012 Other receivable - related parties 242,055 -- Advances to suppliers 510,288 236,496 Financing costs - current 565,684 680,303 Total current assets 140,332,626 136,154,057 PLANT AND EQUIPMENT, net 13,437,640 13,957,397 OTHER ASSETS: Restricted investments 161,471 1,033,463 Financing costs, net of current -- 556,365 Intangible assets, net 32,852,205 17,041,181 Total other assets 33,013,676 18,631,009 Total assets $186,783,942 $168,742,463 LIABILITIES AND SHAREHOLDERS' EQUITY Accounts payable $2,227,240 $6,146,497 Short term bank loans 2,200,500 2,197,500 Notes payable 11,523,285 7,325,000 Other payables 2,880,338 2,152,063 Refundable security deposits due to distributors 3,080,700 4,102,000 Other payables - related parties 951,461 238,956 Accrued liabilities 4,045,510 1,356,898 Liabilities assumed from reorganization 536,614 1,565,036 Taxes payable 4,952,356 11,248,226 Derivative Liabilities 20,074,873 -- Convertible debt, net of discount $17,083,153 as of March, 31, 2010 10,146,847 -- Total current liabilities 62,619,724 36,332,176 CONVERTIBLE DEBT, net of discount $28,493,089 as of June 30, 2009 -- 6,346,911 Total liabilities 62,619,724 42,679,087 COMMITMENTS AND CONTINGENCIES SHAREHOLDERS' EQUITY: Convertible preferred stock Series A ($0.001 par value; 0 shares issued and outstanding as of March 31, 2010 and June 30, 2009) -- -- Common stock ($0.001 par value, 22,500,000 and 15,000,000 shares authorized, 11,474,802 and 10,435,099 shares issued and outstanding as of March 31, 2010 and June 30, 2009, respectively) 11,475 10,435 Paid-in-capital 28,488,749 48,397,794 Capital contribution receivable (11,000) (11,000) Retained earnings 85,611,586 67,888,667 Statutory reserves 3,253,878 3,253,878 Accumulated other comprehensive income 6,809,530 6,523,602 Total shareholders' equity 124,164,218 126,063,376 Total liabilities and shareholders' equity $186,783,942 $168,742,463 JIANGBO PHARMACEUTICALS, INC. AND SUBSIDIARIES (FORMERLY KNOWN AS GENESIS PHARMACEUTICAL ENTERPRISES, INC.) CONSOLIDATED STATEMENTS OF INCOME AND OTHER COMPREHENSIVE INCOME FOR THE THREE AND NINE MONTHS ENDED MARCH 31, 2010 AND 2009 (UNAUDITED) For the Three Months Ended For the Nine Months Ended March 31, March 31, 2010 2009 2010 2009 REVENUES: Sales $ 25,571,389 $25,725,837 $68,135,385 $ 85,991,330 Sales - related parties -- -- -- 243,943 Total revenues 25,571,389 25,725,837 68,135,385 86,235,273 COST OF SALES Cost of sales 6,974,455 6,853,810 17,901,903 19,705,020 Cost of sales - related parties -- -- -- 54,500 Total cost of sales 6,974,455 6,853,810 17,901,903 19,759,520 GROSS PROFIT 18,596,934 18,872,027 50,233,482 66,475,753 RESEARCH AND DEVELOPMENT EXPENSE 1,093,440 1,098,675 3,299,400 3,295,125 SELLING, GENERAL AND ADMINISTRATIVE EXPENSES 3,799,136 4,477,356 13,400,155 31,111,752 INCOME FROM OPERATIONS 13,704,358 13,295,996 33,533,927 32,068,876 OTHER (INCOME) EXPENSE: Change in fair value of derivative liabilities (11,624,079) -- (13,490,071) -- Other income - related parties (80,652) (76,552) (241,956) (313,276) Non-operating (income) expense 5,790 (131,104) 220,061 1,062,488 Interest expense, net 6,643,163 1,241,843 15,562,981 4,143,968 Loss from discontinued operations 36,000 103,008 200,769 1,693,830 Total other income (expense), net (5,019,778) 1,137,195 2,251,784 6,587,010 INCOME BEFORE PROVISION FOR INCOME TAXES 18,724,136 12,158,801 31,282,143 25,481,866 PROVISION FOR INCOME TAXES 3,539,870 3,302,953 8,618,061 8,093,320 NET INCOME 15,184,266 8,855,848 22,664,082 17,388,546 OTHER COMPREHENSIVE INCOME: Unrealized holding gain (loss) 32,164 (200,025) 88,535 (2,147,642) Foreign currency translation adjustment 509 (201,173) 197,393 378,284 COMPREHENSIVE INCOME $ 15,184,775 $ 8,654,650 $22,950,010 $15,619,188 BASIC WEIGHTED AVERAGE NUMBER OF SHARES 11,419,991 10,277,762 10,965,346 9,937,189 BASIC EARNINGS PER SHARE $ 1.33 $ 0.86 $ 2.07 $ 1.75 DILUTED WEIGHTED AVERAGE NUMBER OF SHARES 15,235,811 14,632,762 15,234,156 14,305,589 DILUTED EARNINGS PER SHARE $ 0.02 $ (1.49) $ 0.57 $ (0.86) JIANGBO PHARMACEUTICALS, INC. AND SUBSIDIARIES (FORMERLY KNOWN AS GENESIS PHARMACEUTICAL ENTERPRISES, INC.) CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY Common Stock Par Value $0.001 Capital Number Paid-in contribution of shares Amount capital receivable BALANCE, June 30, 2008 $9,767,844 $9,770 $45,554,513 $(11,000) Shares issued for adjustments for 1:40 reverse split 1,104 -- -- -- Cancellation of common stock for settlement @ $8 per share (2,500) (2) (19,998) -- Common stock issued for service @ $8 per share 2,500 2 19,998 -- Common stock issued for service @ $9 per share 2,500 2 22,498 -- Common stock issued to Hongrui @ $4.035 per share 643,651 643 2,596,488 -- Conversion of convertible debt to stock 20,000 20 159,980 -- Stock based compensation -- -- 64,315 -- Net income Adjustment to statutory reserve Change in fair value on restricted marketable equity securities -- -- -- -- Foreign currency translation gain BALANCE, June 30, 2009 $10,435,099 $10,435 $48,397,794 $(11,000) Cumulative effect of reclassification of warrants -- -- (34,971,570) -- BALANCE, July 1, 2009 as adjusted 10,435,099 10,435 13,426,224 (11,000) Common stock issued for payment for other payable-related party @ $8.75 per share 2,286 2 19,998 -- Common stock issued for services @ $8.75 per share 1,143 1 9,999 -- Common stock issued for services @ $9.91 per share 1,009 1 9,999 -- Common stock issued for interest payment @ $8 per share 84,015 85 990,968 -- Conversion of convertible debt to stock 951,250 951 7,609,049 -- Reclassification of derivative liabilities to APIC due to conversion of convertible debt -- -- 6,287,408 -- Stock based compensation -- -- 135,104 -- Net income Change in fair value on restricted marketable equity securities Foreign currency translation gain -- -- -- -- BALANCE, March 31, 2010 (Unaudited) 11,474,802 11,475 28,488,749 (11,000) Accumulated Retained Earnings other Statutory Unrestricted comprehensive reserves earnings income Totals BALANCE, June 30, 2008 $3,253,878 $39,008,403 $7,700,905 $95,516,469 Shares issued for Adjustments for 1:40 reverse split -- -- -- -- Cancellation of common stock for settlement @ $8 per share -- -- -- (20,000) Common stock issued for service @ $8 per share -- -- -- 20,000 Common stock issued for service @ $9 per share -- -- -- 22,500 Common stock issued to Hongrui @ $4.035 per share -- -- -- 2,597,131 Conversion of convertible debt to stock -- -- -- 160,000 Stock based compensation -- -- -- 64,315 Net income -- 28,880,264 -- 28,880,264 Adjustment to statutory reserve -- -- -- -- Change in fair value on restricted marketable equity securities -- -- (1,514,230) (1,514,230) Foreign currency translation gain -- -- 336,927 336,927 BALANCE, June 30, 2009 $3,253,878 $67,888,667 $6,523,602 $126,063,376 Cumulative effect of reclassification of warrants -- (4,941,163) -- (39,912,733) BALANCE, July 1, 2009 as adjusted 3,253,878 62,947,504 6,523,602 86,150,643 Common stock issued for payment for other payable- related party @ $8.75 per share -- -- -- 20,000 Common stock issued for services @ $8.75 per share -- -- -- 10,000 Common stock issued for services @ $9.91 per share -- -- -- 10,000 Common stock issued for interest payment @ $8 per share -- -- -- 991,053 Conversion of convertible debt to stock -- -- -- 7,610,000 Reclassification of derivative liabilities to APIC due to conversion of convertible debt -- -- -- 6,287,408 Stock based compensation -- -- -- 135,104 Net income -- 22,664,082 -- 22,664,082 Change in fair value on restricted marketable equity securities -- -- 88,535 88,535 Foreign currency translation gain -- -- 197,393 197,393 BALANCE, March 31, 2010 (Unaudited) 3,253,878 85,611,586 6,809,530 124,164,218 JIANGBO PHARMACEUTICALS, INC. AND SUBSIDIARIES (FORMERLY KNOWN AS GENESIS PHARMACEUTICAL ENTERPRISES, INC.) CONSOLIDATED STATEMENTS OF CASH FLOWS FOR NINE MONTHS ENDED MARCH 31, 2010 AND 2009 (Unaudited) 2010 2009 CASH FLOWS FROM OPERATING ACTIVITIES: Net income $ 22,664,082 $ 17,388,546 Loss from discontinued operations 200,769 1,693,830 Income from continuing operations 22,864,851 19,082,376 Adjustments to reconcile net income to net cash, net of acquisition, provided by operating activities: Depreciation 615,565 464,094 Amortization of intangible assets 1,194,331 371,925 Amortization of deferred debt issuance costs 670,984 510,227 Amortization of debt discount 11,409,936 2,679,526 Loss from issuance of shares in lieu of cash interest payment 318,936 -- Interest expense payment of shares in lieu of cash 4,457 -- Bad debt expense 446,257 368,840 Realized (gain) loss on marketable securities 406,346 (106,865) Unrealized (gain) loss on marketable securities (270,339) 1,255,522 Other non-cash settlement -- (20,000) Change in fair value of derivative liabilities (13,490,071) -- Stock-based compensation 155,104 43,340 Changes in operating assets and liabilities Accounts receivable (8,813,521) 2,353,566 Accounts receivable - related parties -- 488,646 Inventories (86,604) 205,471 Other receivables 154,654 63,170 Other receivables - related parties (241,956) (317,303) Advances to suppliers and other assets (273,373) 1,602,693 Accounts payable (3,926,015) 3,171,180 Customer deposit (1,026,480) 4,100,600 Other payables 725,041 194,283 Other payables - related parties 712,114 (58,580) Accrued liabilities 3,338,193 682,145 Liabilities assumed from reorganization (95,384) (1,164,323) Taxes payable (6,308,625) 5,107,831 Net cash provided by operating activities 8,484,399 41,078,364 CASH FLOWS FROM INVESTING ACTIVITIES: Cash used in acquisition -- (8,581,970) Proceeds from sale of marketable securities 531,750 167,623 Purchase of equipment (76,977) (130,814) Purchase of land use right (16,975,633) -- Net cash used in investing activities (16,520,860) (8,545,161) CASH FLOWS FROM FINANCING ACTIVITIES: Change in restricted cash (4,186,572) 4,149,305 Proceeds from bank loans 2,199,600 2,196,750 Payments for bank loans (2,199,600) (2,782,550) Proceeds from notes payable 19,173,180 7,009,097 Principal payments on notes payable (14,986,608) (9,161,912) Net cash (used in) provided by financing activities -- 1,410,690 EFFECTS OF EXCHANGE RATE CHANGE IN CASH 134,826 198,836 INCREASE (DECREASE) IN CASH (7,901,635) 34,142,729 CASH, beginning 104,366,117 48,195,798 CASH, ending $ 96,464,482 $ 82,338,527 SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION: Cash paid for Interest $ 393,111 $ 1,130,837 Cash paid for Income taxes $ 2,631,495 $ 4,883,039 Non-cash investing and financing activities: Common stock issued to acquire Hongrui $ -- $ 2,597,132 Common stock issued for stock based compensation $ 20,000 -- Common stock issued to offset related party payable $ 20,000 -- Common stock issued for interest payment $ 673,929 $ -- Common stock issued for convertible notes conversion $ 7,610,000 $ -- Marketable securities used to settle for liabilities assumed from reorganization $ 1,133,807 $ -- Derivative liability reclassified to equity upon conversion $ 6,287,408 $ -- RECONCILIATION OF NON-GAAP NET INCOME AND DILUTED EPS For Three Months For Nine Months Ended March 31 Ended March 31 2010 2009 2010 2009 Net Income $15,184,265 $8,855,848 $22,664,082 $17,388,546 Loss from discontinued operations 36,000 103,008 200,769 1,693,830 Unrealized loss (gain) on trading securities, net (4,592) (204,134) (270,339) 1,255,522 Loss (gain) in fair value of derivative liabilities (11,624,079) -- (13,490,071) -- Amortization of debt discount and debt issuance costs related to convertible debentures 4,060,333 1,203,365 12,080,920 3,189,752 Adjusted Net Income $7,651,927 $9,958,087 $21,185,361 $23,527,650 Diluted Weighted Average Number of Shares** 15,235,811 14,632,762 15,234,156 14,305,589 Adjusted Diluted Earnings per Share $ 0.50 $ 0.68 $ 1.39 $ 1.64 ** Including outstanding options and warrants using treasury method of calculation plus the number of shares if converted from the convertible debt For more information, please contact: Jiangbo Pharmaceuticals, Inc. Ms. Elsa Sung, CFO Phone: +1-954-903-9378 x2 Email: [email protected] Web: http://www.jiangbopharma.com CCG Investor Relations Ms. Lei Huang, Account Manager Phone: +1-646-833-3417 Email: [email protected] Web: http://www.ccgirasia.com Mr. Crocker Coulson, President Phone: +1-646-213-1915 Email: [email protected]
SOURCE Jiangbo Pharmaceuticals, Inc.