updated 3/21/2011 10:47:38 AM ET 2011-03-21T14:47:38

NEW YORK, March 21, 2011 (GLOBE NEWSWIRE) -- Advanced Battery Technologies, Inc. (Nasdaq:ABAT), a leading developer, manufacturer and distributor of rechargeable Polymer Lithium-Ion (PLI) batteries as well as a manufacturer of electric vehicles, today announced financial results for the year ended December 31, 2010.

Total revenues of $97.1 million for 2010 represented an increase of $33.6 million or 52.8%, compared to $63.6 million for 2009. The increase in revenues was primarily due to the contribution of sales from the electric vehicle business, which the Company acquired on May 4, 2009. Sales of electric vehicles for 2010 were $49.2 million as compared to $20.3 million for 2009. The increase in vehicle sales was attributable to (a) the fact that 2009 results include only the period from May 4, 2009 to December 31, 2009, and (b) efforts by our management to make Wuxi ZQ more responsive to the requirements of its distributors.

Mr. Zhiguo Fu, CEO of ABAT, stated, "We are pleased to report an increase in our revenue attributable to electric vehicles and medium batteries. This has been beneficial to the profitability of our overall business. In order to meet higher demand from both battery and electric scooter markets, the company intends to accelerate growth by building more facilities and expanding our marketing network."

Gross profit for 2010 was $45.9 million, a 61.7% increase from $28.4 million for 2009. The increased profitability of our sales is mainly attributable to improved production efficiencies in our electric vehicles operations. Since the acquisition of Wuxi ZQ in May 2009, we have worked aggressively to control production costs at Wuxi ZQ. As a result, the gross margin on our sales of electric vehicles was over 40%, compared to 33% in 2009. The overall result was an increase in our gross margin from 44.7% in 2009 to 47.3% in 2010.

Net income attributable to common shares increased 68.5% to $36.7 million in 2010 from $21.8 million in 2009. Diluted earnings per share were $0.48 for fiscal year 2010 compared to $0.36 in fiscal year 2009. At December 31, 2010 the Company had a strong balance sheet, with $111.1 million in cash and cash equivalents and a working capital balance of $131.2 million. The primary reason for the improvement in working capital and cash was the strong positive operating cash flows and the equity offering the Company completed in December 2010.

About Advanced Battery Technologies, Inc.

Advanced Battery Technologies, Inc. (Nasdaq:ABAT), founded in September 2002, develops, manufactures and distributes rechargeable Polymer Lithium-Ion (PLI) batteries. The Company's products include rechargeable PLI batteries for electric automobiles, motorcycles, mine-use lamps, notebook computers, walkie-talkies and other electronic devices. ABAT's batteries combine high-energy chemistry with state-of-the-art polymer technology to overcome many of the shortcomings associated with other types of rechargeable batteries. Early in 2009, the Company acquired Wuxi Angell Autocycle Co. Ltd., an electric vehicle manufacturer, and renamed it Wuxi Zhongqiang Autocycle Co., Ltd. ("Wuxi ZQ").  The Company has a New York office, with its executive offices and manufacturing facilities in China. 

Safe Harbor Statement

Certain statements in this release and other written or oral statements made by or on behalf of the Company are "forward-looking statements" within the meaning of the federal securities laws. Statements regarding future events and developments and our future performance, as well as management's expectations, beliefs, plans, estimates or projections relating to the future are forward-looking statements within the meaning of these laws. The forward-looking statements are subject to a number of risks and uncertainties including market acceptance of the Company's services and projects and the Company's continued access to capital and other risks and uncertainties. The actual results the Company achieves may differ materially from those contemplated by any forward-looking statements due to such risks and uncertainties. These statements are based on our current expectations and speak only as of the date of such statements.

ADVANCED BATTERY TECHNOLOGIES, INC.
CONSOLIDATED BALANCE SHEETS
     
  December 31,

2010
December 31,

2009
    (Restated)
ASSETS    
Current Assets:    
Cash and cash equivalents $111,128,070 $52,923,358
Accounts receivable, net 16,084,366 22,406,927
Inventories, net 5,224,553 3,680,098
Loan receivable 1,600,000 1,600,000
Other receivables 272,888 107,751
Advance to suppliers, net 4,015,313 7,940,129
 Deferred tax asset 447,305  -- 
Total Current Assets 138,772,495 88,658,263
     
Property, plant and equipment, net 57,452,244 47,248,600
     
Other assets:    
Investment in unconsolidated entity 776,860 785,057
Deposit for investment 11,721,468 1,457,034
Deposit for long-term assets 2,307,350 2,860,882
Intangible assets, net 13,957,505 14,317,502
Goodwill 2,566,337 2,472,311
Other assets 44,211 26,705
Total Other Assets 31,373,731 21,919,491
     
TOTAL ASSETS $227,598,470 $157,826,354
     
LIABILITIES AND STOCKHOLDERS' EQUITY    
Current Liabilities:    
Short-term loan $-- $2,916,071
Accounts payable 1,282,410 670,254
Advances from customers 10,074 228,871
Accrued expenses and other payables 441,220 1,389,130
Tax payable 5,887,027 -- 
     
Total Current Liabilities 7,620,731 5,204,326
     
Long Term Liabilities:    
Deferred tax liability 3,025,847 3,025,847
Warrant liability 11,749,803 17,221,335
Total Liabilities 22,396,381 25,451,508
     
Commitments and Contingencies    
     
Stockholders' Equity    
Preferred stock, $0.001 face value; 5,000,000 shares

authorized; 2 shares issued and 2 shares outstanding as of

December 31, 2010 and 2009
 --  -- 
Common stock, $0.001 par value; 150,000,000 shares

authorized; 76,619,220 shares issued and 76,424,639 shares

outstanding as of December 31, 2010 and 68,778,112 shares

issued and 68,583,531 shares outstanding as of December 31,

2009
 76,619  68,778
Additional paid-in capital 100,198,536 70,018,939
Accumulated other comprehensive income 11,414,192 5,500,705
Retained earnings 94,012,232 57,285,914
Less: Cost of treasury stock (194,581 shares as of December

31, 2010 and 2009)
 (499,490)  (499,490)
Total Stockholders' Equity 205,202,089 132,374,846
     
TOTAL LIABILITIES AND STOCKHOLDERS'

EQUITY
 $227,598,470  $157,826,354
 
 
ADVANCED BATTERY TECHNOLOGIES, INC.
CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME
FOR THE YEARS ENDED DECEMBER 31, 2010, 2009 AND 2008
   
  For The Years Ended

December 31,
  2010 2009 2008
    (Restated) (Restated)
Revenue $97,128,668 $63,561,925 $45,172,111
       
Cost of Goods Sold 51,231,779 35,169,478 23,122,610
       
Gross Profit 45,896,889 28,392,447 22,049,501
       
Operating Expenses      
Research & Development expenses 204,567 348,297 4,463
Selling, general and administrative expenses 7,842,858 9,890,173 3,263,409
       
Operating Income 37,849,464 18,153,977 18,781,629
       
Other Income (Expenses)      
Interest income 410,001 290,774 124,487
Interest (expense)  (47,653)  (501,096) -- 
Equity gain (loss) from unconsolidated entity  (8,197)   (17,401)  (90,707)
Forgiveness of debt -- 336,906 -- 
Other income (expenses) 265,745 16,963 3,118
Gain on bargain purchase --  8,645,276 -- 
Change in fair value of warrants 5,471,531 666,839 4,090,812 
       
Total Other Income 6,091,427 9,438,261 4,127,710
       
Income before Income Tax 43,940,891 27,592,238 22,909,339
       
Provision for Income Tax      
Income tax - Current 7,650,861 2,764,339 2,722,407
Income tax - Deferred (436,288)  3,025,847 -- 
       
Net Income $36,726,318 $21,802,052 $20,186,932
       
Other Comprehensive Income      
Foreign currency translation adjustment 5,913,487  (511,770) 2,912,481
       
Comprehensive Income $42,639,805 $21,290,282 $23,099,413
       
Earnings per share      
Basic $0.53 $0.42 $0.46
Diluted $0.48 $0.36 $0.39
       
Weighted average number of common shares

outstanding
     
Basic 69,260,213 52,124,814 43,493,492
Diluted 76,404,451 60,222,687 51,671,992
 
 
ADVANCED BATTERY TECHNOLOGIES, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE YEARS ENDED DECEMBER 31, 2010, 2009 AND 2008
 
  For The Years Ended

December 31,
  2010 2009 2008
    (Restated) (Restated)
Cash Flows from Operating Activities:      
Net income $36,726,318 $21,802,052 $20,186,932
Adjustments to reconcile net income to net cash

provided by (used in) operating activities:
     
Gain on bargain purchase  --   (8,645,276)  -- 
Deferred income tax  (436,288)  3,025,847  -- 
Depreciation and amortization  4,116,212  2,629,643  767,235
Amortization of deferred consulting expenses  116,375  137,562  309,237
Amortization of stock-based compensation expense  1,599,563  1,925,653  599,476
Equity loss of unconsolidated entity  8,197  17,401  90,707
Provision for doubtful accounts and inventory

valuation allowance
 296,241  (208,876)  64,161
Forgiveness of debt  --   (336,849)  -- 
Investment impairment loss  --   235,091  371,743
Loss on disposal of fixed asset  5,017  --   55,187
Change in fair value of warrants  (5,471,532)  (666,839)  (4,090,812)
Changes in operating assets and liabilities:      
Accounts receivable, net  7,813,327  (6,514,738)  1,002,020
Inventories, net  (1,369,905)  (274,638)  (636,296)
Other receivables and other assets   (224,235)  (13,252)  144,226
Advance to suppliers  3,316,766  (5,592,320)  1,362,804
Accounts payable, accrued expenses and other

payables
 (251,303)  (9,089,636)  196,288
Advances from customers  (221,898)  (1,164,942)  5,363
Tax payable  5,572,511  (174,435)  -- 
       
Net Cash Provided By (Used in) Operating

Activities
 51,595,366  (2,908,552)  20,428,271
       
Cash Flows from Investing Activities:      
Loan receivable  --   --   (1,600,000)
Deposit for property, plant and equipment  (770,549)  (2,828,783)  (1,748,363)
Purchase of property, plant and equipment  (11,610,479)  (9,333,367)  (3,191,802)
Cash acquired from business combination  --   832,555  -- 
Payment made on deposit for investment  (9,957,588)  (1,463,913)  (3,000,000)
Acquisition of intangible assets  (146,894)  --   -- 
Investment in unconsolidated entity  --   --   (1,500,000)
       
Net Cash (Used in) Investing Activities  (22,485,510)  (12,793,508)  (11,040,165)
       
Cash Flows from Financing Activities:      
Repayment of bank loan  (2,950,396)  (4,389,735)  -- 
Repayment of notes payable  --   --   (411,263)
Purchase of treasury stock  --   (203,788)  (295,702)
Proceeds from equity financing, net  28,471,500  --   -- 
Proceeds from issuance of stock, net  --   40,788,717  20,356,480
Repayment of officer loan  --   (140,059)  (718,465)
       
Net Cash Provided By Financing Activities  25,521,104  36,055,135  18,931,050
       
       
Effect of Exchange Rate Changes on Cash and Cash

Equivalents
 3,573,752  (175,872)  1,722,176
       
Increase in cash and cash equivalents  58,204,712  20,177,203  30,041,332
Cash and Cash Equivalents - Beginning of Year  52,923,358  32,746,155  2,704,823
       
Cash and Cash Equivalents - End of Year $111,128,070 $52,923,358 $32,746,155
       
SUPPLEMENTAL CASH FLOW

INFORMATION:
     
During the year, cash was paid for the following:      
Interest expense $47,653 $395,496 $-- 
Income tax $3,264,431 $1,083,556 $2,881,966
       
NON-CASH INVESTING AND FINANCING

ACTIVITIES:
     
Common stock issued for stock-based

compensation
$1,215,255 $1,162,850 $139,403
Fair value of warrants issued to placement agent

in financing
$619,148 $1,159,370 $917,920
Common stock issued for acquisition of Wuxi ZQ $--  $9,870,000 $-- 
Options issued to executives for service $--  $777,660 $-- 
CONTACT: Rubenstein Investor Relations
         Tim Clemensen
         (212) 843-9337
         TClemensen@RubensteinIR.com

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