EX-99.1 2 v164744_ex99-1.htm Unassociated Document
Deer Consumer Products, Inc. Announces 3rd Quarter Financial Results - Net Income Up 168% to $4.12 Million, Affirms 2009 Earnings Guidance
 
- Revenues of $26.54 million, an increase of 130% from Q3 in 2008
- Net income of $4.12 million, an increase of 168% from Q3 in 2008, fully diluted EPS $0.18
- Affirms 2009 revenue guidance of $81 million and net income of $10.5 million
 
NEW YORK, November 5, 2009 /PRNewswire-FirstCall/ -- Deer Consumer Products, Inc. (Nasdaq Global Market: DEER; Website: www.deerinc.com),  a leading manufacturer of home and kitchen electronics marketing to both global and Chinese domestic consumers, is pleased to announce  financial results for the 3rd quarter ended September 30, 2009.
 
3rd Quarter Revenues
 
·  
Revenues of $26.54 million, up 130%, compared to $11.54 million in Q3 2008
·  
Revenue increase was due to expansion of sales in the U.S. market and  putting significant efforts into increasing our sales to the Chinese and European markets
 
3rd Quarter Net Income
 
·  
Net income of $4.12 million, up 168%, compared to $1.54 million in Q3 2008
 
Affirms 2009 Sales and Earnings Guidance
 
DEER affirms 2009 financial guidance of approximately $81 million in revenues and approximately $10.5 million in net income for our fiscal year ending December 31, 2009. In 2008, DEER reported US GAAP audited revenues of $43.8 million, net income of $3.4 million.
 
Management Comments
 
Bill He, Deer's Chairman & CEO commented, “During the 3rd quarter, we experienced sales and earnings growth both in the Chinese domestic and international markets. Our global customer base, as well as Chinese domestic sales channels,  responded positively to the improved global economic environment which continued to strengthen our market position.  As a result,  we are comfortable with our 2009 earnings guidance.”
 
Mr. He continued: “In the most recently concluded Guang Dong Fair which is China’s largest product show, we noticed significant global and domestic customer demand and interest towards our products. Deer is well positioned to further benefit from any global economic recovery.”
 
 
 
 
 
About Deer Consumer Products, Inc.
 
Deer Consumer Products, Inc. (www.deerinc.com) is a NASDAQ Global Market listed U.S. public company headquartered in China. Supported by more than 103 patents and approximately 1,900 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:
Helen Wang, Corporate Secretary
Deer Consumer Products, Inc.
Tel: 011-86-755-86028285
 
Source: Deer Consumer Products, Inc.
 
 
 
 

DEER CONSUMER PRODUCTS, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS

   
September 30,
    
December 31,
  
   
2009
    
2008
  
   
(unaudited)
        
ASSETS
            
             
CURRENT ASSETS:
            
Cash and cash equivalents
   $ 17,833,183     $ 2,782,026  
Restricted cash
     -       200,099  
Accounts receivable, net
     11,757,169       8,560,465  
Advances to suppliers
     3,767,328       5,015,479  
Other receivables
     199,871       489,286  
Short term investments
     -       29,340  
Due from related party
     -       331,267  
Inventories
     12,334,960       7,680,851  
Other current assets
     -       13,342  
Total current assets
     45,892,511       25,102,155  
                 
PROPERTY AND EQUIPMENT, net
     11,705,817       11,291,202  
CONSTRUCTION IN PROGRESS
     2,213,427       892,897  
INTANGIBLE ASSETS, net
     397,044       404,125  
OTHER ASSETS
     24,977       39,689  
TOTAL ASSETS
   $ 60,233,776     $ 37,730,068  
                 
LIABILITIES AND STOCKHOLDERS' EQUITY
                
                 
CURRENT LIABILITIES:
                
Accounts payable
   $ 9,687,669     $ 8,968,088  
Other payables
     1,676,026       760,632  
Unearned revenue
     3,258,033       3,305,966  
Accrued payroll
     1,028,714       168,282  
Short term loans
     -       3,552,841  
Advances from related party
     80,070       274,805  
Notes payable
     4,881,576       3,155,348  
Tax and welfare payable
     1,635,005       1,533,013  
Total current liabilities
     22,247,093       21,718,975  
                 
LONG-TERM LOAN
     733,500       733,500  
TOTAL LIABILITIES
     22,980,593       22,452,475  
                 
STOCKHOLDERS' EQUITY:
                
Common Stock, $0.001 par value; 75,000,000 shares authorized; 25,576,094 and 19,652,226 shares issued and oustanding as of September 30, 2009 and December 31, 2008, respectively
     25,576       19,652  
Additional paid-in capital
     24,809,942       9,329,371  
Development funds
     859,361       542,701  
Statutory reserve
     1,718,723       1,085,403  
Other comprehensive income
     2,340,270       2,345,698  
Retained earnings
     7,499,311       1,954,768  
Total stockholders' equity
     37,253,183       15,277,593  
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY
   $ 60,233,776     $ 37,730,068  
 
 
 
 

DEER CONSUMER PRODUCTS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME AND OTHER COMPREHENSIVE INCOME

   
Three Months Ended September 30,
    
Nine Month Ended September 30,
  
   
2009
    
2008
    
2009
    
2008
  
   
(unaudited)
    
(unaudited)
    
(unaudited)
    
(unaudited)
  
                         
Revenue
   $ 26,541,039     $ 11,542,215     $ 48,723,758     $ 32,045,142  
                                 
Cost of Revenue
     20,670,731       8,255,913       37,403,300       24,550,251  
                                 
Gross profit
     5,870,308       3,286,302       11,320,458       7,494,891  
                                 
Operating expenses
                                
Selling expenses
     960,013       672,714       1,871,266       1,882,130  
General and administrative expenses
     429,656       943,467       1,607,560       2,182,969  
Total operating expenses
     1,389,669       1,616,181       3,478,826       4,065,099  
                                 
Income from operations
     4,480,639       1,670,121       7,841,632       3,429,792  
                                 
Non-operating income (expense):
                                
Financing costs
     (35,882 )     (1,926 )     (156,543 )     (48,361 )
Interest income
     63,698       1,693       66,354       8,548  
Interest expense
     (14,292 )     (116,617 )     (118,984 )     (206,474 )
Other income (expense)
     8,894       (1,698 )     4,998       74,523  
Realized loss on trading securities
     -       (296 )     -       (34,684 )
Foreign exchange gain
     288,461       530,510       207,958       876,436  
                                 
Total non-operating income (expense)
     310,879       411,666       3,783       669,988  
                                 
Income before income tax
     4,791,518       2,081,787       7,845,415       4,099,780  
                                 
Income tax
     668,745       540,717       1,350,892       1,165,020  
                                 
Net income
     4,122,773       1,541,070       6,494,523       2,934,760  
                                 
Other comprehensive income
                                
Foreign currency translation gain (loss)
     57,012       1,367,814       (5,428 )     2,305,404  
                                 
Comprehensive Income
   $ 4,179,785     $ 2,908,884     $ 6,489,095     $ 5,240,164  
                                 
Weighted average shares outstanding :
                                
Basic
     22,730,722       16,856,898       21,462,056       16,087,045  
Diluted
     23,266,256       16,856,898       21,908,490       16,087,045  
                                 
Earnings per share:
                                
Basic
   $ 0.18     $ 0.09     $ 0.30     $ 0.18  
Diluted
   $ 0.18     $ 0.09     $ 0.30     $ 0.18  
 
 
 
 
 
CONSOLIDATED STATEMENTS OF CASH FLOWS

   
Nine Month Ended September 30,
  
   
2009
    
2008
  
   
(unaudited)
    
(unaudited)
  
             
CASH FLOWS FROM OPERATING ACTIVITIES:
            
Net income
   $ 6,494,523     $ 2,934,760  
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
                
Depreciation
     1,072,586       857,170  
Amortization
     7,076       13,966  
Loss on disposal of fixed assets
     -       36,996  
Realized loss on short term investments
     -       34,684  
(Increase) / decrease in assets:
                
Accounts receivable
     (3,194,307 )     (4,015,909 )
Other receivables
     294,584       147,815  
Inventories
     (4,650,620 )     (6,234,027 )
Due from stockholder
     -       1,446,505  
Due from related party
     331,019       (3,799,263 )
Advances to suppliers
     1,247,216       (228,506 )
Tax rebate receivable
     -       347,731  
Other assets
     25,695       176,343  
Increase / (decrease) in current liabilities:
                
Accounts payable
     719,113       4,946,373  
Unearned revenue
     (47,897 )     1,383,045  
Other payables
     901,444       (150,561 )
Due to related party
     (194,529 )     (791,123 )
Accrued payroll
     859,787       113,427  
Tax and welfare payable
     101,915       392,629  
                 
Net cash provided by (used in) operating activities
     3,967,605       (2,387,945 )
                 
CASH FLOWS FROM INVESTING ACTIVITIES
                
Acquisition of property and equipment
     (1,486,891 )     (3,188,166 )
Acquisition (disposal) of intangible assets
     -       8,041  
Construction in process
     (1,319,539 )     (617,887 )
Changes in restricted cash
     199,948       (147,634 )
Sale of short-term investments
     29,318       114,235  
                 
Net cash used in investing activities
     (2,577,164 )     (3,831,411 )
                 
CASH FLOWS FROM FINANCING ACTIVITIES:
                
Proceeds from issuance of notes payable
     1,724,933       2,969,781  
Proceeds from issuance of short term loans
     -       4,176,723  
Proceeds from sale of common stock
     17,678,000       -  
Offering costs paid
     (2,213,892 )     -  
Proceeds from exercise of warrants
     22,387       -  
Payment on notes short term loans
     (3,550,177 )     -  
Change in advance to shareholder, net
     -       (532,470 )
Change in advance to related party, net
     -       114,695  
                 
Net cash provided by financing activities
     13,661,251       6,728,729  
                 
Effect of exchange rate changes on cash and cash equivalents
     (535 )     111,982  
                 
NET DECREASE IN CASH & CASH EQUIVALENTS
     15,051,157       621,355  
                 
CASH & CASH EQUIVALENTS, BEGINNING BALANCE
     2,782,026       1,511,545  
                 
CASH & CASH EQUIVALENTS, ENDING BALANCE
   $ 17,833,183     $ 2,132,900  
                 
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
                
Interest paid
   $ 116,315     $ 113,356  
Income taxes paid
   $ 565,418     $ 112,743