BEIJING, Nov. 28, 2016 /PRNewswire/ -- Sinovac Biotech
Ltd. (NASDAQ: SVA), a leading provider of biopharmaceutical
products in China, announced today
its unaudited third quarter ended September
30, 2016.
Mr. Weidong Yin, Chairman,
President and CEO of the Sinovac, commented, "Our third quarter
revenue rebounded from a slower first half of the year, increasing
71.4% to $28.7 million from
$16.8 million from the same period of
2015. The sales improvement was mainly attributable to the newly
introduced EV71 vaccine product sales, which contributed
approximately $16.5 million to our
quarterly revenue, partially offset by Bilive and Anflu revenue
decreases."
"Vaccine deliveries resumed in the third quarter after the
interpretation of new government regulation was issued in June,
however we expect the market for conventional vaccines to take
longer to fully recover. Our Bilive sales decline was due to
increased sales returns as the delayed supply reduced the shelf
life of the vaccine in the channel, while our Anflu sales decline
was a result of less vaccine produced during this challenging
environment."
"We continued to make progress on our pipeline programs with the
continuation of clinical trials of our varicella vaccine, Sabin IPV
(sIPV) and pneumococcal polysaccharide vaccine (PPV). Heading into
the fourth quarter, we expect EV71 vaccine sales to remain our
leading revenue contributor," concluded Mr. Yin.
Third Quarter 2016 Business Highlights
Marketing and Sales
As in prior years, Sinovac submitted bids of its Healive in
Beijing, Shanghai, and Jiangsu Province, and Anflu in Beijing. Sinovac won the tenders to supply
Beijing with Healive over the
course of 2016 to 2018 and Anflu for 2016. The total value of the
tenders was RMB 32 million
($4.8 million) for Healive and
RMB 6.6 million ($1.0 million) for Anflu. Sinovac was selected to
be the sole supplier of Healive to Shanghai for 2016 and the value of the
contract is RMB 14.1 million
($2.1 million). Sinovac won the
tender to supply Healive to Jiangsu for 2016 and the total value of the
tender was RMB 13.2 million
($2.0 million).
Research and Development
Varicella - The vaccine candidate was approved to commence
human clinical trials in 2015. The phase I trial was completed and
the results demonstrated a positive safety profile of the vaccine
candidate. The phase III trial commenced in the third quarter. A
phase III trial measures efficacy and immunogenicity with a
randomized, double-blind, parallel-treatment, placebo-controlled
study in addition to safety. Over 6,000 subjects aged one to twelve
years old were enrolled as volunteers for the phase III clinical
trial. We expect the phase III clinical trial to be completed in
the third quarter of 2017, after which the production license
application will be filed with the CFDA.
sIPV - The Company initiated the phase I clinical trial in
October 2016. The preliminary results
show a positive safety profile of the vaccine candidate. After the
results were collected, Sinovac recently commenced the phase II
trial, which is designed to study the immunogenicity of vaccine
candidates with different levels of dosage content for the dose
selection, and to further observe the safety of the vaccine. The
phase II clinical trial is expected to be completed in the third
quarter of 2017.
Unaudited Financial Results
for Third Quarter 2016
|
|
|
2016Q3
|
% of
Sales
|
2015Q3
|
% of
Sales
|
(In $000 except
percentage data)
|
|
|
|
|
Hepatitis A -
Healive
|
6,872
|
23.9%
|
4,800
|
28.6%
|
Hepatitis
A&B - Bilive
|
103
|
0.4%
|
3,701
|
22.1%
|
|
|
|
|
|
Hepatitis vaccines
subtotal
|
6,975
|
24.3%
|
8,501
|
50.7%
|
Influenza
vaccine
|
5,285
|
18.4%
|
8,032
|
47.9%
|
Enterovirus 71
vaccine
|
16,471
|
57.3%
|
-
|
-
|
Mumps
vaccine
|
4
|
0.0%
|
231
|
1.4%
|
Regular
sales
|
28,735
|
100.0%
|
16,764
|
100.0%
|
H5N1
|
-
|
-
|
-
|
-
|
Total
sales
|
28,735
|
100.0%
|
16,764
|
100.0%
|
Cost of
sales
|
5,705
|
19.9%
|
5,549
|
33.1%
|
Gross
profit
|
23,030
|
80.1%
|
11,215
|
66.9%
|
Quarterly sales from continuing operations were $28.7 million compared to $16.8 million in the prior year period. Sales
increased primarily due to revenue generated by the Company's EV71
vaccine.
Gross profit from continuing operations was $23.0 million, compared to gross profit of
$11.2 million in the prior year
period. The increase was primarily due to the contribution of EV71
vaccine sales in the third quarter of 2016. Gross margin was 80.1%,
compared to 66.9% in the prior year period.
Selling, general and administrative expenses in the third
quarter of 2016 were $12.3 million,
compared to $10.0 million in the same
period of 2015. The Company's selling, general and administrative
expenses increased with the higher level of sales activity, and the
Company also incurred a cost of $733
thousand relating to the proposed privatization of
Sinovac.
R&D expenses in the third quarter of 2016 were $4.2 million, compared to $2.2 million in the same period of 2015. The
increase was mainly due to higher R&D expenses on the varicella
and sIPV vaccine projects in the third quarter of 2016.
Income from continuing operations was $4.3 million compared to a loss of $1.8 million in the prior year period. In
addition, the third quarter of 2015 included a loss from
discontinued operations of $183
thousand whereas no such income or loss was received in the
third quarter of 2016.
Net income attributable to common shareholders was $3.2 million, or $0.06 per basic and diluted share, compared to
net loss attributable to common shareholders of $1.6 million, or ($0.03) per basic and diluted share in the prior
year period.
Non-GAAP EBITDA was $7.7 million
in the third quarter of 2016, compared to $721 thousand in the prior year period. Non-GAAP
net income from continuing operations in the third quarter of 2016
was $4.6 million, compared to a net
loss of $1.2 million in the prior
year period. Non-GAAP diluted earnings per share from continuing
operations in the third quarter of 2016 was $0.06, compared to net loss of $0.01 per share in the prior year period.
Reconciliations of non-GAAP measures to the nearest comparable GAAP
measures are included at the end of this earnings announcement.
Unaudited
Financial Results for nine months ended September 30,
2016
|
|
|
2016.1-9
|
% of
Sales
|
2015.1-9
|
% of
Sales
|
(In $000 except
percentage data)
|
|
|
|
|
Hepatitis A -
Healive
|
11,397
|
27.8%
|
16,185
|
36.4%
|
Hepatitis
A&B - Bilive
|
(1,040)
|
(2.5)%
|
17,972
|
40.4%
|
|
|
|
|
|
Hepatitis vaccines
subtotal
|
10,357
|
25.3%
|
34,157
|
76.8%
|
Influenza
vaccine
|
5,995
|
14.6%
|
9,144
|
20.6%
|
Enterovirus 71
vaccine
|
18,033
|
43.9%
|
-
|
-
|
Mumps
vaccine
|
289
|
0.6%
|
1,161
|
2.6%
|
Regular
sales
|
34,674
|
84.4%
|
44,462
|
100.0%
|
H5N1
|
6,392
|
15.6%
|
-
|
-
|
Total
sales
|
41,066
|
100.0%
|
44,462
|
100.0%
|
Cost of
sales
|
14,068
|
34.3%
|
11,140
|
25.1%
|
Gross
profit
|
26,998
|
65.7%
|
33,322
|
74.9%
|
Sales from continuing operations were $41.1 million for the nine months ended
September 30, 2016, a decrease of
7.6% from $44.5 million in the prior
year period. Excluding H5N1 revenue, sales from continuing
operations were $34.7 million for
nine months ended September 30, 2016,
a decrease of 22.0% from $44.5
million in the prior year period. The sales decrease was due
to lower sales to customers in the first half of 2016 and an
increase in sales returns as a result of the vaccine incident in
Shandong province.
Gross profit from continuing operations was $27.0 million, a decrease of 19.0% from
$33.3 million in the prior year
period. Gross margin was 65.7%, compared to 74.9% in the prior year
period. Excluding H5N1, gross margin was 67.0% for the nine months
ended September 30, 2016, compared to
75.5% in the prior year period. The decrease was mainly due to a
higher inventory provision provided for hepatitis A&B and mumps
vaccines, higher idle capacity costs charged to cost of sales, and
a negative gross profit for the hepatitis A&B vaccine due to
higher sales returns provision provided in the period.
Selling, general and administrative expenses for the nine months
ended September 30, 2016 were
$26.7 million, compared to
$25.8 million in the same period of
2015.
R&D expenses for the nine months ended September 30, 2016 were $9.1 million, compared to $6.6 million in the same period of 2015. The
increase was mainly due to higher R&D expenses on the varicella
and sIPV vaccines and the MMR vaccine project.
Net loss from continuing operations was $9.9 million, compared to $749 thousand in the prior year period. Net
income from discontinued operations was $2.3
million, compared to a net loss of $619 thousand in the prior year period.
Net loss attributable to common shareholders was $5.0 million or ($0.09) per basic and diluted share for the nine
months ended September 30, 2016,
compared to net loss attributable to common shareholders of
$1.6 million, or ($0.03) per basic and diluted share for the nine
months ended September 30, 2015.
Non-GAAP EBITDA was negative $4.3
million for nine months ended September 30, 2016, compared to $6.7 million in the prior year period. Non-GAAP
net loss from continuing operations for the nine months ended
September 30, 2016 was $8.5 million, compared to a net income of
$168 thousand in the prior year
period. Non-GAAP diluted net loss per share from continuing
operations for the nine months ended September 30, 2016 was $0.11, compared to $0.00 per share in the prior year period.
Reconciliations of non-GAAP measures to the nearest comparable GAAP
measures are included at the end of this earnings announcement.
As of September 30, 2016, cash and
cash equivalents totaled $54.3
million, compared to $63.8
million as of December 31,
2015. For the nine months ended September 30, 2016 net cash used in operating
activities was $15.5 million. Net
cash used in investing activities was $7.4
million, which was for the purchase of equipment. Net cash
provided by financing activities was $13.9
million, including loan proceeds of $35.0 million and loan repayment of $21.3 million. As of September 30, 2016, the Company had $29.4 million of bank loans due within one year.
The Company expects that its current cash position will be able to
support its operations for at least the next 12 months. The Company
will seek new commercial bank loans to finance the
commercialization of its pipeline products and for other
operational purposes when appropriate.
Update on Consideration of "Going Private" Proposals
An independent special committee of the Company's Board of
Directors is continuing its work to consider and evaluate competing
proposals to privatize the Company. As disclosed previously, the
Company's Board of Directors formed the special committee following
the receipt of a non-binding "going private" proposal, dated
January 30, 2016, from Mr.
Weidong Yin, chairman, president and
chief executive officer of the Company, and SAIF Partners IV L.P.
and/or its affiliates. Subsequently, the special committee received
a non-binding competing "going private" proposal, dated
February 3, 2016, from a consortium
comprised of PKU V-Ming (Shanghai)
Investment Holdings Co., Ltd., Shandong Sinobioway Biomedicine Co.,
Ltd., CICC Qianhai Development (Shenzhen) Fund Management Co., Ltd., Beijing
Sinobioway Group Co., Ltd., Heng Feng Investments (International)
Limited and Fuerde Global Investment Limited.
The special committee has implemented a customary process to
ensure a fair assessment of both proposals. The special
committee continues to carefully consider and evaluate both
proposals with the assistance of the special committee's financial
and legal advisors.
No final decisions have been made with respect to either
proposal, and there can be no assurance that any definitive and
binding offer will be made, that any agreement will be executed or
that either proposal or any other transaction will be approved or
consummated. The Company does not undertake any obligation to
provide any updates with respect to these or any other
transactions, except as required under applicable law.
Conference Call Details
Sinovac will host a conference call on Monday, November 28, 2016, at 8:00 a.m. EDT (Monday,
November 28 at 9:00 p.m. China
Standard Time) to review the Company's financial results and
provide an update on recent corporate developments.
To access the conference call, please dial 1-877-407-9039
(USA) or 1-201-689-8470
(International). A replay of the call will be available after the
earnings call through December 12,
2016. To access the replay, please dial 1-877-870-5176
(USA) or 1-858-384-5517
(International) and reference the replay pin number 13650180.
About Sinovac
Sinovac Biotech Ltd. is a China-based biopharmaceutical company that
focuses on the research, development, manufacturing, and
commercialization of vaccines that protect against human infectious
diseases. Sinovac's product portfolio includes vaccines against
hepatitis A and B, seasonal influenza, H5N1 pandemic influenza
(avian flu), H1N1 influenza (swine flu), mumps and canine rabies.
In 2009, Sinovac was the first company worldwide to receive
approval for its H1N1 influenza vaccine, which it has supplied to
the Chinese Government's vaccination campaign and stockpiling
program. The Company is also the only supplier of the H5N1 pandemic
influenza vaccine to the government stockpiling program. Sinovac's
newly developed innovative vaccine against HFMD caused by EV71 is
ready for market launch. The Company is currently developing a
number of new products including a Sabin-strain inactivated polio
vaccine, pneumococcal polysaccharides vaccine, pneumococcal
conjugate vaccine and varicella vaccine. Sinovac primarily sells
its vaccines in China, while also
exploring growth opportunities in international markets. The
Company has exported select vaccines to Mexico, Mongolia, Nepal, Tajikistan, Bangladesh, Chile and the
Philippines, and was recently granted a license to
commercialize its influenza vaccine in Guatemala. For more information, please visit
the Company's website at www.sinovac.com.
Safe Harbor Statement
This press release contains "forward-looking statements" within
the meaning of the Private Securities Litigation Reform Act of
1995. Such statements involve known and unknown risks,
uncertainties and other factors that may cause our actual results,
levels of activity, performance or achievements to differ
materially from any future results, levels of activity, performance
or achievements expressed or implied by these forward looking
statements. Factors that might cause such a difference include our
inability to compete successfully in the competitive and rapidly
changing marketplace in which we operate, failure to retain key
employees, cancellation or delay of projects and adverse general
economic conditions in the United
States and internationally. These risks and other factors
include those listed under "Risk Factors" and elsewhere in our
Annual Report on Form 20-F as filed with the Securities and
Exchange Commission. In some cases, you can identify
forward-looking statements by terminology such as "may," "will,"
"should," "expects," "intends," "plans," "anticipates," "believes,"
"estimates," "predicts," "potential," "continue," or the negative
of these terms or other comparable terminology. Although we believe
that the expectations reflected in the forward-looking statements
are reasonable, we cannot guarantee future results, levels of
activity, performance or achievements. The Company assumes no
obligation to update the forward-looking information contained in
this release.
Non-GAAP Financial Measures
To supplement its consolidated financial statements, which are
prepared and presented in accordance with GAAP, Sinovac uses the
following non-GAAP financial measures: non-GAAP EBITDA, non-GAAP
net income from continuing operations and non-GAAP diluted EPS from
continuing operations. For more information on these non-GAAP
financial measures, please refer to the table captioned
"Reconciliations of non-GAAP Measures to the Nearest Comparable
GAAP Measures" in this results announcement.
Sinovac believes that non-GAAP EBITDA, non-GAAP net income from
continuing operations and non-GAAP diluted EPS from continuing
operations help identify underlying trends in its business that
could otherwise be distorted by the effect of certain income or
expenses that Sinovac includes in income from operations from
continuing operations, net income from continuing operations and
diluted EPS from continuing operations. Sinovac believes that
non-GAAP EBITDA, non-GAAP net income from continuing operations and
non-GAAP diluted EPS from continuing operations provide useful
information about its core operating results, enhance the overall
understanding of its past performance and future prospects and
allow for greater visibility with respect to key metrics used by
our management in its financial and operational
decision-making. Non-GAAP EBITDA, non-GAAP net income from
continuing operations and non-GAAP diluted EPS from continuing
operations should not be considered in isolation or construed as an
alternative to income from operations from continuing operations,
net income from continuing operations, diluted EPS from continuing
operations, or any other measure of performance or as an indicator
of Sinovac's operating performance. These non-GAAP financial
measures presented here may not be comparable to similarly titled
measures presented by other companies. Other companies may
calculate similarly titled measures differently, limiting their
usefulness as comparative measures to our data.
Non-GAAP EBITDA represents income (loss) from
continuing operations, excludes interest and financing expenses,
interest income, net other income (expenses) and income tax benefit
(expenses), and certain non-cash expenses, consisting of
stock-based compensation expenses, amortization and depreciation
that Sinovac does not believe are reflective of the core operating
performance during the periods presented.
Non-GAAP net income from continuing
operations represents net income from continuing operations
before stock-based compensation expenses, and foreign exchange gain
or loss.
Non-GAAP diluted EPS from continuing
operations represents non-GAAP net income attributable to
ordinary shareholders from continuing operations divided by the
weighted average number of shares outstanding during the periods on
a diluted basis, including accounting for the effect of the assumed
conversion of options.
Contact
Sinovac Biotech Ltd.
Helen
Yang
Tel: +86-10-8279-9871
Fax: +86-10-6296-6910
Email: ir@sinovac.com
ICR Inc.
Bill Zima
U.S: 1-646-308-1707
Email: william.zima@icrinc.com
SINOVAC BIOTECH
LTD.
|
Consolidated
Balance sheets
|
As of September
30, 2016 and December 31, 2015
|
(Expressed in
thousands of U.S. Dollars, except for numbers of shares and per
share data)
|
|
|
|
|
|
Current
assets
|
|
September 30,
2016
(Unaudited)
|
|
December 31,
2015
|
|
|
|
|
|
Cash and cash
equivalents
|
$
|
54,316
|
$
|
63,834
|
Restricted
cash
|
|
311
|
|
1,626
|
Accounts
receivable - net
|
|
47,540
|
|
39,021
|
Inventories
|
|
19,568
|
|
18,685
|
Prepaid expenses and
deposits
|
|
1,136
|
|
958
|
Deferred tax
assets
|
|
3,070
|
|
2,603
|
Current assets held
for sale
|
|
-
|
|
1,797
|
Total current
assets
|
|
125,941
|
|
128,524
|
|
|
|
|
|
Property, plant and
equipment
|
|
67,015
|
|
63,940
|
Prepaid land lease
payments
|
|
9,116
|
|
9,574
|
Long-term
inventories
|
|
83
|
|
-
|
Long-term prepaid
expenses
|
|
24
|
|
25
|
Prepayments for
acquisition of equipment
|
|
1,111
|
|
328
|
Deferred tax
assets
|
|
428
|
|
593
|
Total
assets
|
|
203,718
|
|
202,984
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
Short-term bank loans
and current portion of long-
term bank loans and other debt
|
|
29,445
|
|
21,775
|
Loan from a
non-controlling shareholder
|
|
2,399
|
|
2,470
|
Accounts payable and
accrued liabilities
|
|
26,029
|
|
22,524
|
Income tax
payable
|
|
776
|
|
1,643
|
Deferred
revenue
|
|
141
|
|
8,144
|
Deferred government
grants
|
|
7,188
|
|
1,202
|
Current liabilities
held for sale
|
|
-
|
|
243
|
Total current
liabilities
|
|
65,978
|
|
58,001
|
|
|
|
|
|
Deferred government
grants
|
|
3,366
|
|
4,730
|
Long-term bank
loans
|
|
5,950
|
|
756
|
Deferred
revenue
|
|
93
|
|
-
|
Other non-current
liabilities
|
|
734
|
|
756
|
Total long-term
liabilities
|
|
10,143
|
|
6,242
|
|
|
|
|
|
Total
liabilities
|
|
76,121
|
|
64,243
|
|
|
|
|
|
Commitments and
contingencies
|
|
|
|
|
Equity
|
|
|
|
|
Preferred
stock
|
|
-
|
|
-
|
Common
stock
|
|
57
|
|
57
|
Additional paid-in
capital
|
|
111,097
|
|
109,944
|
Accumulated other
comprehensive income
|
|
3,687
|
|
8,110
|
Statutory surplus
reserves
|
|
13,450
|
|
13,450
|
Accumulated
deficit
|
|
(13,326)
|
|
(8,281)
|
Total
shareholders' equity
|
|
114,965
|
|
123,280
|
|
|
|
|
|
Non-controlling
interests
|
|
12,632
|
|
15,461
|
Total
equity
|
|
127,597
|
|
138,741
|
Total liabilities
and equity
|
$
|
203,718
|
$
|
202,984
|
SINOVAC BIOTECH
LTD.
|
Consolidated
Statements of Comprehensive Income (loss)
|
For the three and
nine months ended September 30, 2016 and 2015
|
(Unaudited)
|
(Expressed in
thousands of U.S. Dollars, except for numbers of shares and per
share data)
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
September 30
|
|
Nine months
ended
September 30
|
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
Sales
|
$
|
28,735
|
$
|
16,764
|
$
|
41,066
|
$
|
44,462
|
Cost of
sales
|
|
5,705
|
|
5,549
|
|
14,068
|
|
11,140
|
Gross
profit
|
|
23,030
|
|
11,215
|
|
26,998
|
|
33,322
|
|
|
|
|
|
|
|
|
|
Selling,
general and administrative expenses
|
|
12,280
|
|
9,959
|
|
26,744
|
|
25,779
|
Provision for
doubtful accounts
|
|
489
|
|
413
|
|
1,054
|
|
496
|
Research and
development expenses
|
|
4,218
|
|
2,215
|
|
9,069
|
|
6,625
|
Loss (gain) on
disposal of property, plant and equipment
|
|
308
|
|
(11)
|
|
429
|
|
(26)
|
Government
grants recognized in income
|
|
(329)
|
|
(58)
|
|
(813)
|
|
(501)
|
Total
operating expenses
|
|
16,966
|
|
12,518
|
|
36,483
|
|
32,373
|
Operating
income (loss)
|
|
6,064
|
|
(1,303)
|
|
(9,485)
|
|
949
|
|
|
|
|
|
|
|
|
|
Interest and
financing expenses
|
|
(352)
|
|
(493)
|
|
(1,136)
|
|
(1,502)
|
Interest
income
|
|
139
|
|
233
|
|
592
|
|
948
|
Other income
(expense)
|
|
(22)
|
|
33
|
|
214
|
|
114
|
Income
(loss) from continuing operations before
income taxes
|
|
5,829
|
|
(1,530)
|
|
(9,815)
|
|
509
|
Income tax
benefit (expense)
|
|
(1,547)
|
|
(267)
|
|
(55)
|
|
(1,258)
|
Income
(loss) from continuing operations
|
|
4,282
|
|
(1,797)
|
|
(9,870)
|
|
(749)
|
Income
(loss) from discontinued operations, net of tax
of nil
|
|
-
|
|
(183)
|
|
2,338
|
|
(619)
|
Net Income
(loss)
|
|
4,282
|
|
(1,980)
|
|
(7,532)
|
|
(1,368)
|
Less: Loss
(income) attributable to the non-controlling interests
|
(1,077)
|
|
382
|
|
2,487
|
|
(210)
|
Net Income
(loss) attributable to shareholders of
Sinovac
|
|
3,205
|
|
(1,598)
|
|
(5,045)
|
|
(1,578)
|
|
|
|
|
|
|
|
|
|
Income
(loss) from continuing operations
|
|
4,282
|
|
(1,797)
|
|
(9,870)
|
|
(749)
|
Other
comprehensive income (loss) from continuing
operations, net of tax of nil
|
|
|
|
|
|
|
|
|
Foreign currency
translation adjustments
|
|
(464)
|
|
(2,739)
|
|
(2,907)
|
|
(2,674)
|
Comprehensive income (loss) from
continuing
operations
|
|
3,818
|
|
(4,536)
|
|
(12,777)
|
|
(3,423)
|
|
|
|
|
|
|
|
|
|
Income
(loss) from discontinued operations
|
|
-
|
|
(183)
|
|
2,338
|
|
(619)
|
Other
comprehensive income (loss) from
discontinued operations, net of tax of nil
|
|
|
|
|
|
|
|
|
Foreign currency
translation adjustments
|
|
-
|
|
(82)
|
|
(1,857)
|
|
(92)
|
Comprehensive income (loss) from
discontinued
operations
|
|
-
|
|
(265)
|
|
481
|
|
(711)
|
|
|
|
|
|
|
|
|
|
Comprehensive income
(loss)
|
|
3,818
|
|
(4,801)
|
|
(12,296)
|
|
(4,134)
|
Less:
comprehensive loss (income) attributable to non-
controlling interests
|
|
(1,008)
|
|
700
|
|
2,828
|
|
96
|
Comprehensive income (loss) attributable
to
shareholders of Sinovac
|
$
|
2,810
|
$
|
(4,101)
|
$
|
(9,468)
|
$
|
(4,038)
|
|
|
|
|
|
|
|
|
|
Earnings
(loss) per share
|
|
|
|
|
|
|
|
|
Basic net income
(loss) per share:
|
|
|
|
|
|
|
|
|
Continuing
operations
|
|
0.06
|
|
(0.03)
|
|
(0.13)
|
|
(0.02)
|
Discontinued
operations
|
|
0.00
|
|
0.00
|
|
0.04
|
|
(0.01)
|
Basic net income
(loss) per share
|
|
0.06
|
|
(0.03)
|
|
(0.09)
|
|
(0.03)
|
|
|
|
|
|
|
|
|
|
Diluted net income
(loss) per share:
|
|
|
|
|
|
|
|
|
Continuing
operations
|
|
0.06
|
|
(0.03)
|
|
(0.13)
|
|
(0.02)
|
Discontinued
operations
|
|
0.00
|
|
0.00
|
|
0.04
|
|
(0.01)
|
Diluted net income
(loss) per share
|
|
0.06
|
|
(0.03)
|
|
(0.09)
|
|
(0.03)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted
average number of shares of
|
|
|
|
|
|
|
|
|
Basic
|
|
56,968,033
|
|
56,424,587
|
|
56,937,573
|
|
56,126,013
|
Diluted
|
|
57,016,036
|
|
56,424,587
|
|
56,937,573
|
|
56,126,013
|
|
|
|
|
|
|
|
|
|
SINOVAC BIOTECH
LTD.
|
Consolidated
Statements of Cash Flows
|
For the three and
nine months ended September 30, 2016 and 2015
|
(Unaudited)
|
(Expressed in
thousands of U.S. Dollars)
|
|
Three months
ended
|
Nine months
ended
|
|
|
September
30
|
|
September
30
|
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
Cash flows
provided by (used in) operating activities
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
$
|
4,282
|
$
|
(1,980)
|
$
|
(7,532)
|
$
|
(1,368)
|
Less: Income (loss)
from discontinued operations-net of tax
|
|
-
|
|
(183)
|
|
2,338
|
|
(619)
|
Income (loss) from
continuing operations
|
|
4,282
|
|
(1,797)
|
|
(9,870)
|
|
(749)
|
Adjustments to
reconcile net income to net cash provided by (used
in) operating activities:
|
|
|
|
|
|
|
|
|
- Deferred
income taxes
|
|
(466)
|
|
(465)
|
|
(398)
|
|
234
|
- Stock-based
compensation
|
|
315
|
|
316
|
|
947
|
|
637
|
- Inventory
provision
|
|
450
|
|
(42)
|
|
3,201
|
|
499
|
- Provision for
doubtful accounts
|
|
489
|
|
413
|
|
1,054
|
|
496
|
- Loss (gain)
on disposal and impairment of property, plant and
equipment
|
308
|
|
(11)
|
|
429
|
|
(26)
|
- Government
grants recognized in income
|
|
(329)
|
|
(58)
|
|
(813)
|
|
(501)
|
- Research and
development expenditures qualified for government grant
|
|
(350)
|
|
-
|
|
(350)
|
|
-
|
- Depreciation
of property, plant and equipment and amortization of
licenses
|
1,223
|
|
1,643
|
|
4,097
|
|
4,953
|
- Amortization
of prepaid land lease payments
|
|
61
|
|
65
|
|
187
|
|
197
|
- Accretion
expenses
|
|
-
|
|
31
|
|
-
|
|
90
|
Changes
in:
|
|
|
|
|
|
|
|
|
- Accounts
receivable
|
|
(18,806)
|
|
(3,826)
|
|
(10,505)
|
|
(7,439)
|
-
Inventories
|
|
1,485
|
|
1,842
|
|
(4,828)
|
|
(3,252)
|
- Income tax
payable
|
|
2,009
|
|
(415)
|
|
(831)
|
|
(797)
|
- Prepaid
expenses and deposits
|
|
(358)
|
|
112
|
|
(242)
|
|
610
|
- Deferred
revenue
|
|
(236)
|
|
(12)
|
|
(7,804)
|
|
(1,116)
|
- Accounts
payable and accrued liabilities
|
|
2,655
|
|
(897)
|
|
2,958
|
|
(4,037)
|
- Deferred
government grants
|
|
6,080
|
|
389
|
|
6,111
|
|
398
|
- Restricted
cash
|
|
1,286
|
|
-
|
|
1,286
|
|
-
|
- Other
non-current liabilities
|
|
-
|
|
6
|
|
-
|
|
6
|
Net cash provided
by (used in) operating activities from
continuing operations
|
|
98
|
|
(2,706)
|
|
(15,371)
|
|
(9,797)
|
Net cash used in
operating activities from discontinued
operations
|
|
-
|
|
(143)
|
|
(95)
|
|
(823)
|
Net cash provided
by (used in) operating activities
|
|
98
|
|
(2,849)
|
|
(15,466)
|
|
(10,620)
|
|
|
|
|
|
|
|
|
|
Cash flows
provided by (used in) financing activities
|
|
|
|
|
|
|
|
|
- Proceeds from
bank loans
|
|
12,329
|
|
2,433
|
|
34,983
|
|
14,389
|
- Repayments of
bank loans
|
|
(3,531)
|
|
(8,673)
|
|
(21,282)
|
|
(37,214)
|
- Proceeds from
issuance of common stock,
|
|
54
|
|
51
|
|
182
|
|
551
|
net of
share issuance costs
|
|
|
|
|
|
|
|
|
- Proceeds from
shares subscribed
|
|
(12)
|
|
(9)
|
|
24
|
|
-
|
Net cash provided
by (used in) financing activities
|
|
8,840
|
|
(6,198)
|
|
13,907
|
|
(22,274)
|
|
|
|
|
|
|
|
|
|
Cash flows used in
investing activities
|
|
|
|
|
|
|
|
|
- Acquisition
of property, plant and equipment
|
|
(3,611)
|
|
(528)
|
|
(8,222)
|
|
(3,373)
|
- Proceeds from
disposal of subsidiary
|
|
-
|
|
-
|
|
875
|
|
-
|
Net cash used
in investing activities from continuing operations
|
|
(3,611)
|
|
(528)
|
|
(7,347)
|
|
(3,373)
|
Net cash used in
investing activities from discontinued operations
|
-
|
|
-
|
|
(9)
|
|
-
|
Net cash used in
investing activities
|
|
(3,611)
|
|
(528)
|
|
(7,356)
|
|
(3,373)
|
|
|
|
|
|
|
|
|
|
Effect of exchange
rate changes on cash and cash equivalents,
including cash classified within current assets held for
sale
|
|
(229)
|
|
(821)
|
|
(746)
|
|
(891)
|
|
|
|
|
|
|
|
|
|
Increase
(decrease) in cash and cash equivalents, including cash
classified within current assets held for sale
|
|
5,098
|
|
(10,396)
|
|
(9,661)
|
|
(37,158)
|
Less: Net decrease in
cash classified within current assets for sale
|
|
-
|
|
73
|
|
(143)
|
|
(67)
|
Increase
(decrease) in cash and cash equivalents
|
|
5,098
|
|
(10,469)
|
|
(9,518)
|
|
(37,091)
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents, beginning of period
|
|
49,218
|
|
64,671
|
|
63,834
|
|
91,293
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents, end of period
|
$
|
54,316
|
$
|
54,202
|
$
|
54,316
|
$
|
54,202
|
|
|
|
|
|
|
|
|
|
SINOVAC BIOTECH
LTD.
|
Reconciliations of
Non-GAAP measures to the nearest comparable GAAP
measures
|
For the three and
nine months ended September 30, 2016 and 2015
|
(Unaudited)
|
(Expressed in
thousands of U.S. Dollars, except for numbers of shares and per
share data)
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
September 30
|
|
Nine months
ended
September 30
|
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
Income
(loss) from continuing operations
|
|
4,282
|
|
(1,797)
|
|
(9,870)
|
|
(749)
|
Adjustments:
|
|
|
|
|
|
|
|
|
Stock-based compensation
|
|
315
|
|
316
|
|
947
|
|
637
|
Depreciation and amortization
|
|
1,284
|
|
1,708
|
|
4,284
|
|
5,150
|
Interest
and financing expenses, net of interest income
|
|
213
|
|
260
|
|
544
|
|
554
|
Net
other (income) expense
|
|
22
|
|
(33)
|
|
(214)
|
|
(114)
|
Income
tax (benefit) expense
|
|
1,547
|
|
267
|
|
55
|
|
1,258
|
Non-GAAP
EBITDA
|
|
7,663
|
|
721
|
|
(4,254)
|
|
6,736
|
|
|
|
|
|
|
|
|
|
Income
(loss) from continuing operations
|
|
4,282
|
|
(1,797)
|
|
(9,870)
|
|
(749)
|
Add:
Foreign exchange loss (gain)
|
|
38
|
|
302
|
|
441
|
|
280
|
Add:
Stock-based compensation
|
|
315
|
|
316
|
|
947
|
|
637
|
Non-GAAP net
income (loss) from continuing
operations
|
|
4,635
|
|
(1,179)
|
|
(8,482)
|
|
168
|
|
|
|
|
|
|
|
|
|
Net Income
(loss) from continuing operations
attributable to shareholders of Sinovac
|
|
3,205
|
|
(1,415)
|
|
(7,383)
|
|
(959)
|
Add: Non-GAAP
adjustments to net income from
continuing operations
|
|
353
|
|
618
|
|
1,388
|
|
917
|
Non-GAAP net
income attributable to
shareholders of Sinovac from continuing
operations for computing non-GAAP diluted
earnings (loss) per share
|
|
3,558
|
|
(797)
|
|
(5,995)
|
|
(42)
|
|
|
|
|
|
|
|
|
|
Weighted
average number of shares on a diluted
basis
|
|
57,016,036
|
|
56,424,587
|
|
56,937,573
|
|
56,126,013
|
Diluted
earnings (loss) per share from continuing
operations
|
|
0.06
|
|
(0.03)
|
|
(0.13)
|
|
(0.02)
|
Add: Non-GAAP
adjustments to net income per share
from continuing operations
|
|
0.00
|
|
0.02
|
|
0.02
|
|
0.02
|
Non-GAAP
Diluted EPS from continuing
operations
|
|
0.06
|
|
(0.01)
|
|
(0.11)
|
|
0.00
|
|
|
|
|
|
|
|
|
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/sinovac-reports-unaudited-third-quarter-2016-financial-results-300368800.html
SOURCE Sinovac Biotech Co., Ltd.