1st Quarter Results

    RNS Number : 9412U
  Bodisen Biotech Inc
  21 May 2008
   

    Bodisen Biotech, Inc. reports Unaudited First Quarter Financial Results

    Review & Extracts of the Form10-Q as required by the Securities & Exchange Commission


    Bodisen Biotech, Inc. (the "Company") (OTC Pink Sheets: BBCZ; London AIM: BODI; website: www.bodisen.com) today announced its first
quarter unaudited results for the period ended March 31, 2008 which are extracted from the Company's Form 10-Q filed with the SEC.


    First Quarter Financial & Operational highlights

    Revenues of approximately $900,000 compared with $5.0m in the same period of 2007.

    Net Income was a profit of $1.76m compared with a loss of ($3.36m) for the same period, following a bad debt recovery of $2.1m.

    Diluted EPS was $0.10 compared with ($0.08) in the same period last year.


    Enquiries:

    Charles Stanley Securities
    Rick Thompson / Philip Davies / Freddy Crossley         020 7149 6000

    Bodisen Biotech, Inc.
    Scott King                                                                 001 219 939 3073



    Results of Operations

    Three months ended March 31, 2008 compared to Three months ended March 31, 2007.

    Revenue. We generated revenues of $908,519 for the three months ended March 31, 2008, a decrease of $4,009,953, compared to $5,008,472
for the three months ended March 31, 2007. The significant decrease in revenue was due to the fact that we had a much smaller customer base
in the three months ended March 31, 2008 as compared to March 31, 2007 (as a result of the loss of customers following our delisting from
the American Stock Exchange, or Amex), as well as a snow storm that occurred in the first quarter of 2008, which affected crop plantings and
led to a decrease in the use of fertilizer.

    Gross Profit. We achieved a gross profit of $341,231 for the three months ended March 31, 2008, a decrease of $1,648,991, compared to
$1,990,222 for the three months ended March 31, 2007. The significant decrease in gross profit was due to the significant decrease in sales
revenue. Gross margin (gross profit as a percentage of revenues), decreased from 39.7% for the three months ended March 31, 2007, to 37.6%
for the three months ended March 31, 2008, primarily as a result of a small increase in raw material costs. 

    Operating expenses. We incurred net operating expenses of $841,603 for the three months ended March 31, 2008, a decrease of $2,679,920
or 76.1% compared to $3,521,523 for the three months ended March 31, 2007. The significant decrease was primarily a result of the fact that
operating expenses for the three months ended March 31, 2007 were higher than normal due to a $1,360,277 allowance for bad debts recorded
during that period. The decrease was also due to an overall reduction in overhead due to the decrease in sales.

    Aggregated selling expenses accounted for $182,259 of our operating expenses for the three months ended March 31, 2008, a decrease of
$166,755 or 47.8% compared to $349,014 for the three months ended March 31, 2007. The decrease in our aggregated selling expenses is due to
the significant decrease in sales. General and administrative expenses accounted for the remainder of our operating expenses of $659,344 for
the three months ended March 31, 2008, which decreased $2,513,165 or 79.2% compared to $3,172,509 for the three months ended March 31, 2007.
The significant decrease in general and administrative expenses was a result of the fact that such expenses for the three months ended March
31, 2007 were higher than normal due to a $1,360,277 allowance for bad debts recorded during that period. The decrease was also due to an
overall reduction in overhead due to the decrease in sales..

    Non Operating Income and Expenses. We had total non-operating income of $2,268,307 for the three months ended March 31, 2008 compared to
total non-operating income of $21,755 for the three months ended March 31, 2007. Other income was $2,212,059 for the three months ended
March 31, 2008 compared to other expense of $67,197 for three months ended March 31, 2007. The change is primarily due to a bad debt
recovery of $2,184,912 during the three months ended March 31, 2008. Interest income was $56,248 for the three months ended March 31, 2008
compared to $90,009 of interest income for the three months ended March 31, 2007. The decrease in 2008 is due to a decrease in our overall
cash balance.

    Net Income/(loss). We had net income of $1,767,935 for the three months ended March 31, 2008 compared to a net loss of $(1,509,546) for
the three months ended March 31, 2007. We had earnings/(loss) per share of $0.10 and $(0.08) for the three months ended March 31, 2008 and
2007, respectively.


    About Bodisen Biotech, Inc. 

    Bodisen Biotech, Inc. is a leading manufacturer of liquid and organic compound fertilizers, pesticides, insecticides and agricultural
raw material certified by the Petroleum Chemical Industry Administrative office of China (Chemical Petroleum Production Administrative
Bureau), Shaanxi provincial government and Chinese government. The company is headquartered in Shaanxi province and is a Delaware
corporation. The company files annual and periodic reports with the U.S. Securities and Exchange Commission, which are accessible at
www.sec.gov.


    Safe Harbor Statement

    This press release may contain forward-looking statements within the meaning of the "safe harbor" provisions of the Private Securities
Litigation Reform Act of 1995. These statements are based on the current expectations or beliefs of Bodisen Biotech, Inc. management and are
subject to a number of factors and uncertainties that could cause actual results to differ materially from those described in the
forward-looking statements.


      CONSOLIDATED STATEMENTS OF OPERATIONS AND OTHER COMPREHENSIVE INCOME (LOSS) FOR THE THREE MONTHS ENDED MARCH 31, 2008 AND 2007

                                                  Three Months Ended March 31,
                                                      2008            2007
                                                  (unaudited)      (unaudited)

 Net Revenue                                   $       908,519  $    5,008,472

 Cost of Revenue                                       567,288       3,018,250

 Gross profit                                          341,231       1,990,222

 Operating expenses
 Selling expenses                                      182,259         349,014
 General and administrative expenses                   659,344       3,172,509
 Total operating expenses                              841,603       3,521,523

 Loss from operations                                (500,372)     (1,531,301)

 Non-operating income/(expense):
 Other income/(expense)                              2,212,059        (67,197)
 Interest income                                        56,248          90,009
 Interest expense                                            -         (1,057)
                                                                              
 Total non-operating income/(expense)                2,268,307          21,755

 Profit/loss before provision for income             1,767,935     (1,509,546)
 taxes

 Provision for income taxes                                  -               -

 Net income/(loss)                                   1,767,935     (1,509,546)
 Other comprehensive income (loss)
 Foreign currency translation gain                           -        641,676 
 Unrealized loss on marketable equity                        -     (2,497,159)
 security
                                                                              
 Comprehensive income/(loss)                   $     1,767,935  $  (3,365,029)

 Weighted average shares outstanding 
 Basic                                              18,310,250      18,310,250
 Diluted                                            18,310,250      18,310,250

 Earnings per share:
 Basic                                         $          0.10  $       (0.08)
 Diluted                                       $          0.10  $       (0.08)
      CONSOLIDATED BALANCE SHEETS
    AS OF MARCH 31, 2008 AND DECEMBER 31, 2007

                                                  March 31,       December 31,
                                                    2008              2007
                                                 (unaudited)
                   ASSETS

 CURRENT ASSETS:
 Cash & cash equivalents                      $      768,400  $        617,406
 Accounts receivable and other receivable,         1,356,605           618,052
 net of allowance for doubtful accounts of
 $24,095,816 and $25,447,689
 Other receivables                                 3,671,817         2,292,763
 Inventory                                         1,733,654         1,179,448
 Advances to suppliers                             9,452,441         9,741,090
 Prepaid expense and other current assets          5,227,194         5,066,015

 Total current assets                             22,210,111        19,514,774

 PROPERTY AND EQUIPMENT, net                       5,433,918         5,306,254

 CONSTRUCTION IN PROGRESS                          8,122,327         7,722,756

 MARKETABLE SECURITY                              10,958,608        14,239,999

 INTANGIBLE ASSETS, net                            2,097,922         2,050,652

 OTHER ASSETS                                      3,911,974         3,720,785

 LOAN RECEIVABLE                                   2,545,300         2,439,275

 TOTAL ASSETS                                 $   55,280,160  $     54,994,495

    LIABILITIES AND STOCKHOLDERS' EQUITY

 CURRENT LIABILITIES:
 Accounts payable                             $    1,122,468  $      1,186,768
 Accrued expenses                                    183,327           219,936

 Total current liabilities                         1,305,795         1,406,704

 STOCKHOLDERS' EQUITY: 
 Preferred stock, $0.0001 per share;
 authorized 5,000,000 shares; 
 nil issued and outstanding 
 Common stock, $0.0001 per share; authorized           1,831             1,831
 30,000,000 shares; issued and outstanding
 18,310,250 and 18,310,250
 Additional paid-in capital                       33,860,062        33,860,062
 Other comprehensive income                       15,139,414        16,520,775
 Statutory reserve                                 4,314,488         4,314,488
 Retained Earnings                                   658,570       (1,109,365)
 Total stockholders' equity                       53,974,365        53,587,791

 TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY   $   55,280,160  $     54,994,495


      CONSOLIDATED STATEMENTS OF CASH FLOWS
    FOR THE THREE MONTHS ENDED MARCH 31, 2008 AND 2007


                                                 Three Months Ended March 31,
                                                    2008             2007
                                                 (unaudited)      (unaudited)
 CASH FLOWS FROM OPERATING ACTIVITIES:
 Net income (loss)                            $            -  $              -
 Adjustments to reconcile net income (loss)
 to net cash 
 used in operating activities:
 Depreciation and amortization                       118,141           115,221
 Allowance for bad debts                         (2,370,691)         1,360,277
 (Increase) / decrease in assets:
 Accounts receivable                               1,670,737       (1,760,948)
 Other receivable & Loan Receivable              (1,264,440)       (1,177,348)
 Inventory                                         (495,907)       (1,851,263)
 Advances to suppliers                               682,752           487,098
 Prepaid expense                                      49,372           (2,512)
 Increase / (decrease) in current
 liabilities:
 Accounts payable and accrued expenses              (89,350)           354,315
 Accrued expenses                                   (44,532)             1,992

 Net cash used in operating activities           (1,743,918)       (2,473,168)

 CASH FLOWS FROM INVESTING ACTIVITIES
 Acquisition of property and equipment              (64,214)          (57,187)
 Additions to construction in progress                     -         (823,584)
 Proceeds from other assets                           47,403            43,583
                                                                              
 Net cash used in investing activities              (16,811)         (837,188)

 Effect of exchange rate changes on cash and         143,788           105,437
 cash equivalents

 NET INCREASE (DECREASE) IN CASH & CASH          (1,616,941)       (3,204,919)
 EQUIVALENTS

 CASH & CASH EQUIVALENTS, BEGINNING OF                     -        11,824,327
 PERIOD

 CASH & CASH EQUIVALENTS, END OF PERIOD       $  (1,616,941)  $      8,619,408

 SUPPLEMENTAL DISCLOSURE OF CASH FLOW
 INFORMATION:
 Interest paid                                $            -  $              -
 Income taxes paid                            $            -  $              -


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