- Record revenues of $15.3 million, an increase of 34.3% from Q2 in
2008 - Record net income of $1.7 million, an increase of 197% from
Q2 in 2008, EPS of $0.16 - Anticipates earnings growth momentum to
continue for the rest of 2009 NEW YORK, Aug 13
/PRNewswire-FirstCall/ -- Deer Consumer Products, Inc. (Nasdaq:
DEER; Website: http://www.deerinc.com/), one of the world's largest
manufacturers of home and kitchen electronics marketing to both
global and Chinese domestic consumers, is pleased to announce
record financial results for the 2nd quarter ended June 30, 2009.
Record 2nd Quarter Revenues -- Revenues of $15.3 million, up 34.3%,
compared to $11.4 million in Q2 2008 -- Significant revenue
increase was attributed to the Company's marketing success in both
domestic and international markets Record 2nd Quarter Net Income --
Net income of $1.7 million, up 197%, compared to $0.58 million in
Q2 2008 -- The significant increase in net income was primarily due
to greater economies of scale in production costs combined with
rapid growth in revenues and significantly improved operating
efficiency. Anticipates Earnings Growth to Continue in 2009 Based
on customer orders received and anticipated product delivery
schedule for the remainder of 2009, DEER has raised 2009 earnings
guidance to approximately $0.93 per share, or approximately $10.5
million in net income on 2009 revenue guidance of approximately $81
million. In 2008, DEER reported US GAAP audited revenue of $43.8
million, net income of $3.4 million and earnings per share of $0.39
on a post share split basis. DEER currently has 11.28 million
shares issued and outstanding. Management Comments & Strategies
- Organic Growth and Strategic Acquisitions Bill He, Deer's
Founder, Chairman & CEO commented, "We are experiencing record
sales and growth both in the domestic and international markets as
businesses and consumers respond to the results of improving
economic environment in the consumer marketplace. In addition, I am
delighted with our ability to focus on cost efficiency in all
market efforts and the resulting improvements in our bottom line.
Deer will continue to expand our market penetration organically
while seek out potential synergistic acquisition targets that may
be immediately accretive to our earnings growth. As a market leader
in China's consumer based home electronics, Deer is well positioned
to further benefit from the global economic recovery." About Deer
Consumer Products, Inc. Deer Consumer Products, Inc.
(http://www.deerinc.com/) is a NASDAQ listed U.S. public company
headquartered in China. Supported by more than 103 patents and
approximately 1,500 full time and part time employees, Deer is a
market leader in the design, manufacture and sale of home and
kitchen electric appliances marketing to the vast Chinese domestic
consumer markets as well as customers in more than 40 countries
worldwide. Deer's product lines include blenders, juicers, pressure
cookers and other home appliances designed to improve home
lifestyles in today's fast-paced society. With more than 100 global
and domestic clients/branded products including Black & Decker,
Ariete, Disney, Toastmaster, Magic Bullet, Back to Basics, and
Wal-Mart, Deer has enjoyed rapid sales and earnings growth in the
recent years. Safe Harbor Statement All statements in this press
release that are not historical are forward-looking statements made
pursuant to the "safe harbor" provisions of the Private Securities
Litigation Reform Act of 1995. There can be no assurance that
actual results will not differ from the company's expectations. You
are cautioned not to place undue reliance on any forward-looking
statements in this press release as they reflect Deer's current
expectations with respect to future events and are subject to risks
and uncertainties that may cause actual results to differ
materially from those contemplated. Potential risks and
uncertainties include, but are not limited to, the risks described
in Deer's filings with the Securities and Exchange Commission.
Contact Information: Corporate Contact: James Chiu Chief Operating
Officer Deer Consumer Products, Inc. Tel: 011-86-755-8602831 DEER
CONSUMER PRODUCTS, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE
SHEETS June 30, December 31, 2009 2008 ---- ---- (unaudited) ASSETS
------ CURRENT ASSETS: Cash and cash equivalents $4,803,810
$2,782,026 Restricted cash 90,574 200,099 Accounts receivable, net
11,724,789 8,560,465 Advances to suppliers 3,029,003 5,015,479
Other receivables 425,649 489,286 Short term investments - 29,340
Due from related party - 331,267 Inventories 8,348,225 7,680,851
Other current assets - 13,342 -- ------ Total current assets
28,422,050 25,102,155 PROPERTY AND EQUIPMENT, net 10,569,106
11,291,202 CONSTRUCTION IN PROGRESS 1,798,861 892,897 INTANGIBLE
ASSETS, net 398,860 404,125 OTHER ASSETS 29,840 39,689 ------
------ TOTAL ASSETS $41,218,717 $37,730,068 =========== ===========
LIABILITIES AND STOCKHOLDERS' EQUITY
--------------------------------------- CURRENT LIABILITIES:
Accounts payable $9,166,903 $8,968,088 Other payables 1,225,099
760,632 Unearned revenue 2,454,242 3,305,966 Accrued payroll
609,542 168,282 Short term loans - 3,552,841 Advances from related
party 80,070 274,805 Notes payable 4,828,684 3,155,348 Tax and
welfare payable 2,195,666 1,533,013 --------- --------- Total
current liabilities 20,560,206 21,718,975 LONG-TERM LOAN 732,500
733,500 ------- ------- TOTAL LIABILITIES 21,292,706 22,452,475
---------- ---------- STOCKHOLDERS' EQUITY: Common Stock, $0.001
par value; 75,000,000 shares authorized; 11,281,558 and 9,826,123
shares issued and oustanding as of June 30, 2009 and December 31,
2008, respectively 11,282 9,826 Additional paid-in capital
11,676,849 9,339,197 Development funds 669,398 542,701 Statutory
reserve 1,338,798 1,085,403 Other comprehensive income 2,283,258
2,345,698 Retained earnings 3,946,426 1,954,768 --------- ---------
Total stockholders' equity 19,926,011 15,277,593 ----------
---------- TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $41,218,717
$37,730,068 =========== =========== DEER CONSUMER PRODUCTS, INC.
AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME AND OTHER
COMPREHENSIVE INCOME Three Months Ended June 30, Six Month Ended
June 30, -------------------------- ------------------------ 2009
2008 2009 2008 ---- ---- ---- ---- (unaudited) (unaudited)
(unaudited) (unaudited) Revenue $15,310,503 $11,403,758 $22,182,719
$20,502,927 Cost of Revenue 11,519,865 9,316,186 16,732,569
16,294,338 ---------- --------- ---------- ---------- Gross profit
3,790,638 2,087,572 5,450,150 4,208,589 Operating expenses Selling
expenses 727,911 770,748 911,253 1,209,416 General and
administrative expenses 806,323 683,622 1,177,904 1,239,502 -------
------- --------- --------- Total operating expenses 1,534,234
1,454,370 2,089,157 2,448,918 --------- ------- --------- ---------
Income from operations 2,256,404 633,202 3,360,993 1,759,671
Non-operating income (expense): Financing costs (65,835) 40,716
(120,661) (46,435) Interest income 1,037 3,471 2,656 6,855 Interest
expense (44,687) (69,362) (104,692) (89,857) Other income (expense)
(2,015) 43,123 (3,896) 76,221 Realized loss on trading securities -
(34,388) - (34,388) Foreign exchange gain (loss) (9,997) 274,319
(80,503) 345,926 -------- ------- -------- ------- Total
non-operating income (expense) (121,497) 257,879 (307,096) 258,322
Income before income tax 2,134,907 891,081 3,053,897 2,017,993
Income tax 420,031 312,937 682,147 624,303 --------- -------
--------- --------- Net income 1,714,876 578,144 2,371,750
1,393,690 Other comprehensive income Foreign currency translation
gain (loss) (42,108) 358,640 (62,440) 937,590 ---------- --------
---------- ---------- Comprehensive Income $1,672,768 $936,784
$2,309,310 $2,331,280 ========== ======== ========== ==========
Weighted average shares outstanding : Basic 10,813,206 7,847,853
10,408,604 7,847,853 ========== ========= ========== =========
Diluted 10,853,083 7,847,853 10,438,480 7,847,853 ==========
========= ========== ========= Earnings per share: Basic $0.16
$0.07 $0.23 $0.18 ===== ===== ===== ===== Diluted $0.16 $0.07 $0.23
$0.18 ===== ===== ===== ===== DEER CONSUMER PRODUCTS, INC. AND
SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS Six Month Ended
June 30, ------------------------ 2009 2008 ---- ---- (unaudited)
(unaudited) CASH FLOWS FROM OPERATING ACTIVITIES: Net income
$2,371,750 $1,393,690 Adjustments to reconcile net income to net
cash provided by (used in) operating activities: Depreciation
707,567 520,861 Amortization 4,716 9,232 Foreign exchange
(gain)/loss - (345,926) Realized loss on short term investments -
34,388 (Increase) / decrease in assets: Accounts receivable
(3,177,512) (1,235,681) Other receivables 68,397 (193,907)
Inventories (678,170) (1,831,539) Due from related party 330,974
(3,413,338) Advances to suppliers 1,980,585 345,291 Tax rebate
receivable - 651,925 Other assets 20,792 (3,697) Increase /
(decrease) in current liabilities: Accounts payable 211,143
3,710,793 Unearned revenue (847,621) (32,213) Other payables
462,873 37,909 Due to related party (194,491) (784,380) Accrued
payroll 441,700 95,652 Tax and welfare payable 665,060 (79,745)
--------- ---------- Net cash provided by (used in) operating
activities 2,367,763 (1,120,685) --------- ---------- CASH FLOWS
FROM INVESTING ACTIVITIES Acquisition of property and equipment
(532) (245,122) Acquisition (disposal) of intangible assets - 5,686
Construction in process (907,615) (536,404) Changes in restricted
cash 109,304 (121,221) Sale of short-term investments 29,302
141,691 -------- -------- Net cash used in investing activities
(769,541) (755,370) -------- -------- CASH FLOWS FROM FINANCING
ACTIVITIES: Proceeds from issuance of notes payable 1,678,439 -
Repayments of notes payable - (29,116) Proceeds from issuance of
short term loans - 1,004,376 Proceeds from sale of common stock
2,678,000 - Offering costs paid (338,892) - Payment on notes short
term loans (3,549,693) - Change in advance to related party, net -
(274,001) ------- ------- Net cash provided by financing activities
467,854 701,259 ------- ------- Effect of exchange rate changes on
cash and cash equivalents (44,292) 66,154 ------- ------ NET
DECREASE IN CASH & CASH EQUIVALENTS 2,021,784 (1,108,642) CASH
& CASH EQUIVALENTS, BEGINNING BALANCE 2,782,026 1,511,545
--------- --------- CASH & CASH EQUIVALENTS, ENDING BALANCE
$4,803,810 $402,903 ========== ======== SUPPLEMENTAL DISCLOSURE OF
CASH FLOW INFORMATION: Interest paid $102,024 $89,857 ========
======= Income taxes paid $440,315 $267,296 ======== ========
DATASOURCE: Deer Consumer Products, Inc. CONTACT: James Chiu, Chief
Operating Officer, Deer Consumer Products, Inc., 011-86-755-8602831
Web Site: http://www.deerinc.com/
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