SHANTOU, China, November 19, 2013 /PRNewswire/ --
Big Tree Group, Inc. (OTCQB: BIGG), a company that serves as a "one stop shop" for the sourcing and distribution of toys and related products, announced today its financial results for the third quarter and first nine months ended September 30, 2013.
Financial Highlights
For the third quarter of 2013, total revenues 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 our 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, largely 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, we 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.
Commenting on the second quarter financial results of 2013, Mr. Wei Lin, Chairman and CEO of Big Tree Group, stated, "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."
About Big Tree Group, Inc.
Big Tree Group, Inc., headquartered in Shantou, China, a city known in the toy industry as the premier location for toy manufacturing in China, serves as a "one stop shop" for the sourcing and distribution of toys and related products. We act as an authorized agent for over 8,000 toy manufacturers in China offering in excess of 300,000 varieties of toy products including remote control toys, digital toys, sports toys, play sets, educational toys, dolls, and infant toys. We showcase these products at our two expansive showrooms in Shantou where we also facilitate orders and combine shipments to destinations across the globe. Customers can also order via our website knowing that the products we represent have undergone rigorous quality control tests at our in-house testing facility. Additionally, we market a line of proprietary construction toys known as the Big Tree -Magic Puzzle, which we sell on our websites as well as through domestic retail store channels.
For more information about the company, please visit http://www.bigtreegroup.net
DISCLOSURE NOTICE:
In connection with the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, Big Tree Group, Inc., is hereby providing cautionary statements identifying important factors that could cause our actual results to differ materially from those projected in forward-looking statements (as defined in such act). Any statements that are not historical facts and that express, or involve discussions as to, expectations, beliefs, plans, objectives, assumptions or future events or performance (often, but not always, indicated through the use of words or phrases such as "will likely result," "are expected to," "will continue," "is anticipated," "estimated," "intends," "plans," "believes" and "projects") may be forward-looking and may involve estimates and uncertainties which could cause actual results to differ materially from those expressed in the forward-looking statements. We caution that the factors described herein could cause actual results to differ materially from those expressed in any forward-looking statements we make and that investors should not place undue reliance on any such forward-looking statements. Further, any forward-looking statement speaks only as of the date on which such statement is made, and we undertake no obligation to update any forward-looking statement to reflect events or circumstances after the date on which such statement is made or to reflect the occurrence of anticipated or unanticipated events or circumstances. New factors emerge from time to time, and it is not possible for us to predict all of such factors. Further, we cannot assess the impact of each such factor on our results of operations or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements. This press release is qualified in its entirety by the cautionary statements and risk factor disclosure contained in our Securities and Exchange Commission filings, including our Annual Report on Form 10-K for the fiscal year ended December 31, 2012.
Contact:
US Representative
Tel: +1(954)363-9333, Ext. 316
Email: IR@bigtreegroup.net
SOURCE Big Tree Group, Inc.