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Smart Balance Inc. (SMBL) filed Quarterly Report for the period ended 2011-09-30.
Smart Balance Inc. has a market cap of $377.3 million; its shares were traded at around $6.4 with a P/E ratio of 40 and P/S ratio of 1.5.
This is the annual revenues and earnings per share of SMBL over the last 10 years. For detailed 10-year financial data and charts, go to 10-Year Financials of SMBL.
Highlight of Business Operations:
Financial instruments which potentially subject the Company to concentrations of credit risk consist principally of cash, cash equivalents and trade receivables. The Company maintains the majority of its cash and cash equivalents in the form of demand deposits with financial institutions that management believes are creditworthy. At September 30, 2011, the cash balances in these institutions were insured in full by the Federal Deposit Insurance Corporation. Concentrations of credit risk relative to trade receivables are limited due to our diverse client base. The Company does have one customer that accounted for approximately 17% and 19% of sales during the three and nine months ended September 30, 2011, respectively. The aggregate accounts receivable from this customer amounted to approximately 14% of the accounts receivable balance outstanding at September 30, 2011. The Company also has one product, “spreads,” which accounted for approximately 64% and 68% of total revenue for the three and nine months ended September 30, 2011, respectively. Approximately 59% and 66% of the Company s revenues during the three and nine months ended September 30, 2011, respectively, came from products utilizing licenses from Brandeis University.Our gross profit decreased $2.0 million to $86.8 million for the nine months ended September 30, 2011 from $88.8 million for the same period in 2010. Excluding a $0.8 million charge related to the Glutino acquisition, gross profit decreased $1.2 million to $87.6 million due to the impact of rising commodity costs, a product mix shift to lower margin products, and lower volumes. Partially offsetting these factors were higher selling prices and the addition of Glutino results.
loss of $(119.6) million for the corresponding period in 2010. Included in the 2011 amount are one-time items of $4.1 million net expenses, including $2.6 million costs related to the Glutino acquisition, a $1.1 million legal settlement, a $0.8 million inventory adjustment related to the purchase of Glutino and a one-time benefit in the change in stock-based compensation expense of $0.4 million. Included in the 2010 amount are a goodwill impairment charge of $130.0 million, a restructuring charge of $3.1 million and a one-time benefit in the change in stock-based compensation expense of $1.3 million. Excluding these items, total operating income for the nine months ended September 30, 2011 was $21.2 million, an increase of $9.0 million from 2010. The increase was due primarily to lower operating expenses, partially offset by lower gross profits.
Our net income for the nine months ended September 30, 2011 was $8.0 million compared to a net loss of $(128.5) million in the corresponding period in 2010. Included in 2011 net income are after-tax one-time costs of $1.8 million related to the Glutino acquisition; a $1.5 million reduction of deferred tax assets resulting from the forfeiture of certain non-qualified stock options; a $0.6 million legal settlement and a one-time benefit in the change in stock-based compensation expense of $0.2 million. Included in the 2010 net loss are a goodwill impairment charge of $130.0 million (which derived no tax benefit); a $3.1 million reduction of deferred tax assets resulting from the forfeiture of certain non-qualified stock options; an after-tax realignment charge of $1.9 million and an after-tax one-time benefit in the change in stock-based compensation expense of $0.8 million. Excluding these items, net income for the nine months ended September 30, 2011 was $11.7 million, an increase of $6.0 million from 2010. This increase was due primarily to lower operating expenses, partially offset by lower gross profit.
Our basic and diluted net income per share for the nine months ended September 30, 2011 was $0.14, based on the basic and diluted weighted average shares outstanding of 59.4 million. Our basic and diluted net loss per share for the nine months ended September 30, 2010 was $(2.07), based on the basic and diluted weighted average shares outstanding of 62.1 million. Included in 2011 net income were $(0.03) costs related to the Glutino acquisition, a reduction of deferred tax assets resulting from the forfeiture of certain non-qualified stock options of $(0.02) and a $(0.01) legal settlement. Included in the 2010 net loss are a goodwill impairment charge of $(2.09), a reduction of deferred tax assets resulting from the forfeiture of certain non-qualified stock options of $(0.05), a restructuring charge of $(0.03), and a one-time benefit in the change in stock-based compensation expense of $0.01. Excluding these items, net earnings per common share for the nine months ended September 30, 2011 was $0.20, an increase of $0.11 from 2010.
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