Message #8 From:
NewsBot Date: November 15, 2006 08:55:00 AM
ETLT News Eternal Technologies Announces Third Quarter Results
HOUSTON--(BUSINESS WIRE)--Eternal Technologies Group, Inc. (OTCBB:ETLT) today reported results of
operations for the three and nine months ended September 30, 2006.
Revenues for the three months ended September 30, 2006 increased by
$2,089,207 or 41.6% to $7,116,175 from $5,026,986 for corresponding
period of 2005. For the three months ended September 30, 2006 the
company had net income of $1,843,743 or $.05 per share compared to net
income of $730,231 or $.02 per share for the corresponding period of the
prior year.
For the nine months ended September 30, 2006, the company reported
revenues of $21,702,671, an increase of $4,443,288 or 25.7% from the
$17,259,383 reported for the nine months ended September 30, 2005. The
company had net income of $4,043,242 or $.10 per share for the nine
months ended September 30, 2006 compared to net income of $2,560,091 or
$.06 per share for the corresponding period of 2005.
The Company continues to be very liquid. As of September 30, 2006, it
had cash and cash equivalents of $14,891,671, short term investments of
$25,262,732 and working capital of $39,692,110. The company’s
shareholders equity increased to $53,340,660 or $1.31 per share,
substantially above its closing price of $.0467 on November 14, 2006.
Mr. Jijun Wu, Chairman of the company, stated that “the
company is performing and continues to perform very well, exceeding its
projections in all of its operations. He went on to state that the
results of E-Sea are particularly encouraging, as E-Sea has generated
$5,761,636 in sales for the first nine months with a gross profit margin
in excess of 60%. He concluded by stating that the company expects to
have record operating results for the year ended December 31, 2006.
The company’s financial statements for the
three and nine months ended September 30, 2006 are attached hereto.
About Eternal Technologies
Eternal is a major agricultural genetics and biopharmaceutical R&D firm
operating in China with the support of the Chinese Government. Eternal's
animal breeding division has a strong asset base, cash position and net
income. Eternal has become one of China's leading institutions for
biopharmaceutical and biotech research, pure breed cultivation and breed
stock production. The Company has secured a key market niche by
commercializing gene engineering technologies and providing superior
breeding stock, allowing China's citizens the ability to improve their
living standards. With the world's largest population, a double-digit
national growth rate and entry into the WTO, Eternal Technologies has a
playing field set for tremendous opportunity. As a prominent player in
the agricultural genetics industry, cash in the bank and an untapped
market, Eternal has the potential to become a major player in China's
national growth.
Property and equipment, net of accumulated depreciation
6,962,452
Land use rights, net of accumulated amortization
4,728,236
Intangible assets
1,174,717
Total assets
$56,505,017
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Notes Payable and convertible debt
$443,366
Accounts payable and accrued liabilities
1,864,418
Amounts due to related parties
215,861
Income taxes payable
354,261
Derivative financial instrument liability
286,451
Total current liabilities
3,164,357
Commitments and contingencies:
Stockholders' equity:
Preferred shares - $0.001 par value, 5,000,000 authorized, none
issued or outstanding
-
Common shares - $0.001 par value; 95,000,000 authorized; 40,567,300
and 39,854,026 shares issued and outstanding at September 30, 3006
and December 31, 2005, respectively
40,567
Additional paid - in capital
13,636,496
Subscription receivable
(10,176)
Retained earnings
37,258,983
Accumulated other comprehensive income
2,414,790
Total stockholders' equity
53,340,660
Total liabilities and stockholders' equity
$56,505,017
ETERNAL TECHNOLOGIES GROUP, INC.
UNAUDITED CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS
For the Three Months and Nine Months Ended September 30, 2006
and 2005
(Amounts in United States Dollars)
Three Months Ended September 30,
Nine Months Ended September 30,
2006
2005
2006
2005
(Restated)
(Restated)
Sales
$7,116,175
$5,026,968
$21,702,671
$17,259,383
Cost of sales
3,893,304
3,512,402
14,277,572
12,550,186
Gross profit
3,222,871
1,514,566
7,425,099
4,709,197
Depreciation and amortization
267,573
193,619
798,559
573,954
Selling, general and administrative expenses
975,078
294,917
2,289,608
1,203,804
Income from operations
1,980,220
1,026,030
4,336,932
2,931,439
Other income (expense)
Interest income
52,384
42,278
141,221
138,973
Interest expense
-
-
-
(54,761)
Change in value of derivative financial instruments
