Business News
Shiner International Announces Record Sales and Net Income for 2008
Monday 23. March 2009 - Shiner International, Inc. (NASDAQ:BEST), an emerging global supplier of anti-counterfeiting and advanced packaging products, today announced record financial results for the year ended December 31, 2008
Shiner International, Inc. (NASDAQ:BEST), an emerging global supplier of anti-counterfeiting and advanced packaging products, today announced record financial results for the year ended December 31, 2008, highlighted by:
— Total revenues of $51.6 million compared to 2007 total revenues of
$42.8 million, an increase of 20.6%
— Net income of $4.9 million compared to 2007 net income of $4.5 million
— BOPP tobacco film sales increased by 55% year over year
— Anti-counterfeit film sales increased by 195% year over year
Record 2008 Revenue
Shiner, which began trading on the NASDAQ Stock Market in February 2008, reported total revenue of $51.6 million in 2008, up from $42.8 million in 2007. The higher revenues resulted from a 55% increase in BOPP tobacco film sales and a 195% increase in sales of anti-counterfeit film. In 2008, sales of color printed packaging products, BOPP tobacco film, coated film and anti-counterfeit film accounted for 19.0%, 35.1%, 25.6% and 20.3%, respectively, of Shiner’s 2008 revenue.
Record 2008 Earnings
The Company reported that 2008 net income increased 7.5% to $4.9 million compared to net income of $4.5 million for the prior year. This performance was driven by higher sales volume in BOPP tobacco film and anti-counterfeit film products, as well as an increase in average selling prices. Earnings per share decreased $0.04 to $0.20 on a fully diluted basis year to year, as a result of the increase in the weighted average number of shares outstanding in 2008.
Management Comments
Management believes that the Company’s record 2008 financial performance is the result of the technical superiority of Shiner’s advanced packaging films, combined with strong brand recognition and an effective sales strategy that emphasizes the marketing of products that account for higher profitability. However, as a consequence of the world’s turbulent economy, price instability of oil-related raw materials, a decrease in packaging demands related to melamine milk related concerns and fluctuations in foreign exchange rates, Shiner experienced lower than anticipated results during the fourth quarter of 2008 and, as a result, did not meet its previously announced guidance for 2008.
Mr. Jian Fu, CEO of Shiner International, commented “2008 was a year of transition, however, we are making great strides dealing with the global recession’s impact that is affecting almost every industry. We have been proactive in reducing expenses. Also, we are encouraged by what we see as demand from new market centers, such as America and Europe, for our products. We are very excited about the challenges that we face in 2009 and are confident that in the long run, Shiner will meet all of its original goals. We are now experiencing more stable oil and related raw material pricing. In addition, it appears as though the fundamental demand for packaging is returning. Most importantly, the market is indicating to us that many converters or end users for packaging films are searching for new suppliers with greater competitive prices and better service, such as Shiner. The Company will continue to execute its business plan and remains totally committed to enhancing shareholder value through solid earnings growth and good corporate governance. We believe that our small size and flexibility are advantageous to Shiner’s long-term growth in the current economy and into the future.”
Stock Buyback Program
Shiner is also announcing its institution of a stock buyback program of up to 4 million shares of its common stock over the next 12 months. The share repurchases will occur through open market purchases, privately negotiated transactions and/or transactions structured through investment banking institutions as permitted by securities laws and other legal requirements. The program allows the Company to repurchase its shares at its discretion. Market conditions will influence the timing of the buyback and the actual number of shares repurchased.
The repurchases will be funded with the Company’s existing cash and future cash flows from operations, and the Company currently intends to hold the repurchased shares as treasury stock. The outstanding shares used to calculate earnings per share will be immediately reduced by the number of shares repurchased. The Company has approximately 24.6 million shares of common stock outstanding, of which management owns approximately 47%.