KAIBO FOODS Co Ltd

CIK:0001426874|SEC Filings

Net Income Per Share

6 Months Ended

Jun. 30, 2012

NET INCOME PER SHARE

Basic income per share is calculated using the weighted average number of shares of common stock outstanding during the period. Diluted income per share assumes the conversion, exercise or issuance of all potential common stock instruments, such as warrants and convertible debt, unless the effect is anti-dilutive.

The following is a reconciliation of the denominators for the weighted average number of shares outstanding used in the calculation of basic income per share for the three and six months ended June 30, 2011 and 2012:

	Three Months Ended June 30,				Six Months Ended June 30,
	2011		2012		2011		2012
	(Unaudited)		(Unaudited)		(Unaudited)		(Unaudited)

Shares issued		3,611,009		24,003,570		3,447,108		24,003,570
Effect of reverse merger (1)		20,131,759		-		20,131,759		-

		23,742,768		24,003,570		23,578,867		24,003,570

(1)

Earnings per share for periods prior to the reverse merger have been restated to reflect the equivalent number of shares to be received pursuant to the Share Exchange by the Waibo shareholders.

The following is a reconciliation of the denominators for the weighted average number of shares outstanding used in the calculation of diluted income per share for the three and six months ended June 30, 2011 and 2012:

	Three Months Ended June 30,				Six Months Ended June 30,
	2011		2012		2011		2012
	(Unaudited)		(Unaudited)		(Unaudited)		(Unaudited)

Shares issued		23,742,768		24,003,570		23,578,867		24,003,570
Effect of reverse merger (1)		260,802		-		424,703		-

		24,003,570		24,003,570		24,003,570		24,003,570

As of June 30, 2011 and 2012 the Company had warrants outstanding to purchase 171,536 shares of common stock, which were considered anti-dilutive as the exercise prices of the warrants exceeded the average market price of the Company’s common stock

Consolidated Statements of cash flows (USD $) In Thousands, unless otherwise specified	6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011
Operating activities:
Net income	$ 8,833	$ 9,327
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	537	518
Fair value change on derivative instruments	(5)	93
Changes in operating assets and liabilities:
Trade accounts receivable	19,950	22,374
Inventories	1,118	1,345
Prepayments and other receivables	(63)	(53)
Trade accounts payable	(441)	(241)
Accruals and other payables	(2,157)	(2,227)
Net cash provided by operating activities	27,772	31,136
Investing activities:
Deposits for property, plant and equipment		(7,669)
Acquisitions of property, plant and equipment	(397)	(82)
Net cash used in investing activities	(397)	(7,751)
Financing activities:
Proceeds from short-term debt	1,587	766
Proceeds from long-term debt	786
Payments on short-term debt		(1,532)
Advances from shareholders	328	2,814
Repayment of advances from shareholders	(316)
Net cash provided by financing activities	2,385	2,048
Increase in cash	29,760	25,433
Effect of exchange rates on changes in cash	(876)	790
Cash, beginning of period	62,971	27,374
Cash, end of the period	91,855	53,597
Cash paid during the period for:
Interest	155	190
Income taxes
Non-cash investing and financing activities
Transfer of deposits to property, plant and equipment	1,644
Conversion of convertible note and other payable into common stock		$ 425

Consolidated Balance Sheets (USD $) In Thousands, unless otherwise specified	Jun. 30, 2012	Dec. 31, 2011
Current assets:
Cash	$ 91,855	$ 62,971
Trade accounts receivable		20,045
Inventories	190	1,315
Prepayments and other receivables	362	303
Total current assets	92,407	84,634
Property, plant and equipment, net	8,641	7,227
Deposits on property, plant and equipment	9,981	11,744
Total assets	111,029	103,605
Current liabilities:
Trade accounts payable	2	446
Accruals and other payables	1,153	3,328
Taxes payable	3,002	3,000
Short-term borrowings	5,110	3,577
Derivative instruments		5
Due to shareholders	9,464	9,442
Total current liabilities	18,731	19,798
Long-term debt	786
Total liabilities	19,517	19,798
Commitments and contingencies
Shareholders' equity:
Preferred stock, no par value; 2,000,000 shares authorized; none issued and outstanding on December 31, 2011 and June 30, 2012
Common stock, par value $0.001 per share; 600,000,000 shares authorized; issued and outstanding 24,003,570 shares on December 31, 2011 and June 30, 2012	24	24
Additional paid in capital	9,526	9,526
Statutory reserve	5,425	5,425
Retained earnings	68,956	60,123
Accumulated other comprehensive income	7,581	8,709
Total shareholders' equity	91,512	83,807
Total liabilities and shareholders' equity	$ 111,029	$ 103,605