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Asia Bio-Chem Group Corp. Announces 2011 Fourth Quarter and Fiscal Year End Financial Results
TORONTO, March 22, 2012 /CNW/ - Asia Bio-Chem Group Corp. (TSX: ABC) ("Asia Bio-Chem" or th...
About this update from Absolutely Critical Resources Corp.
[{"type":"text","content":"\n\n\n\n\n\nTORONTO, March 22, 2012 /CNW/ - Asia Bio-Chem Group Corp. (TSX: ABC)\n (\"Asia Bio-Chem\" or the \"Company\") announces its financial results for\n the three-month period and fiscal year ending December 31, 2011.\n\n\nHighlights\n\n\nIncreased product prices and higher sales volumes contributed to a 37.1%\n improvement in revenues during the fourth quarter of 2011 to $63.6\n million compared with the same period in 2010.\n\nRecord high corn costs caused gross margin to decline to 3.3% during the\n fourth quarter compared with 14.2% during the same period in 2010.\n\nLower gross margin together with higher operating expenses during the\n fourth quarter resulted in a net loss of $5.9 million or $0.07 loss per\n share compared with $2.9 million net income or $0.04 earnings per share\n during the fourth quarter of 2010. Prior to the $2.2 million allowance\n for doubtful accounts the net loss was $3.7 million.\n\nThe Company continues to enjoy a good relationship with its banking\n group with total bank borrowings of $120.9 million at December 31,\n 2011.  During the fourth quarter, the Company secured additional $40.4\n million in bank loans..\n\nThe company maintains a total cash balance of $35.6 million at December\n 31, 2011.\n\nIn view of current economic conditions, the Company continues to defer\n the construction of its Daqing downstream expansion project.\n\n\n\"2011 was a year of challenges for our Company and for the industry in\n which we operate.  Our product prices have not kept up with continued\n increases in corn prices which has put pressure on our margins during\n the second half of the year,\" stated Mr. Zhiping Wang, President and\n CEO of Asia Bio-Chem.  \"Trading conditions continue to be challenging\n in the first quarter of 2012 however starch prices have begun to\n improve at the end of the quarter.\"\n\n\nDuring the fourth quarter, overall production increased by 43.2% to\n 182,644 tonnes.\n\n\nDuring the fourth quarter, a 12.2% increase in corn costs caused gross\n margin to decline to 3.3% compared with 14.2% during the same period in\n 2010.\n\n\nEarnings before interest, taxes, depreciation and amortization\n (\"EBITDA\") during the fourth quarter declined by 151.4% to negative\n $2.8 million, as the Company experienced lower margins and higher costs\n including a $2 million p...