Big Tree Group, a company that serves as a “one stop shop” for the sourcing and distribution of toys and related products, today reported its financial results for the third quarter and first nine months ended September 30, 2013.
Financial Highlights
Total revenues for the third quarter reached a record $16.4 million, an increase of 91% compared to total revenues of $8.6 million recorded in 2012 and a 37% sequential increase from second quarter 2013 revenues of $11.9 million. The increase in revenues compared to the third quarter of 2012 was primarily due to a shift in revenue mix toward full service sales, where the company managed the entire sales process from order through shipment, as well as an increase in overall sales.
Gross margins declined to 7.2% in the third quarter of 2013 as compared to 14.9% in the third quarter of 2012. The decrease in gross margins was mainly a result of the continuance of a more aggressive pricing strategy to increase international market share as well as revenue recognition policies associated with the increase in full service sales which are recorded on a gross basis as compared sales which are recorded on a net basis. In the third quarter of 2013, the company’s operations resulted in gross profit of $1.2 million compared to gross profit of $1.3 million recorded in the third quarter of 2012.
Operating expenses in the third quarter of 2013 were $470,000, up from $344,000 in the third quarter of 2012, mainly due to increased staffing and the opening of our second showroom in Shantou.
Net income in the third quarter of 2013 was $592,000 or $0.06 per basic and diluted share on 10.4 million shares outstanding. Net income in the third quarter of 2012 was $942,000 or $0.09 per basic and diluted share on 10.0 million shares outstanding.
For the first nine months of 2013, Big Tree Group recorded revenues of $35.7 million with net income of $1.0 million or $0.10 per basic and diluted share on 10.3 million shares outstanding. For the first nine months of 2012, revenues were $19.3 million with net income of $1.7 million or $0.17 per basic and diluted share on 10.0 million shares outstanding.
Balance Sheet
At September 30, 2013, total assets were $12.8 million and shareholders’ equity was $2.6 million. At December 31, 2012, total assets were $8.7 million and shareholders’ equity was $2.6 million.
Mr. Wei Lin, Chairman and CEO of Big Tree Group, commented, “We continue to see sales growth being driven by our aggressive pricing strategy and are pleased with our performance in the quarter. We have had strong sequential growth in revenue and earnings as we have increased volumes in both domestic and international markets. We believe we can sustain this momentum into 2014 and achieve further financial growth in both our top and bottom line results for the benefit of our stockholders.”
For more information, visit www.bigtreegroup.net
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