Chai-Na-Ta Corp. Reports 2005 Year-end Results.RICHMOND, British Columbia This page is for the city of Richmond, British Columbia. For the federal electoral district in this locality see Richmond (electoral district); for the provincial electoral district see Richmond (provincial electoral district). -- (All amounts are in Canadian dollars Noun 1. Canadian dollar - the basic unit of money in Canada; "the Canadian dollar has the image of loon on one side of the coin" loonie dollar - the basic monetary unit in many countries; equal to 100 cents ) - Chai-Na-Ta Corp. (TSX TSX Toronto Stock Exchange (TSE before April, 2002) TSX Transfer from Stack Pointer to Index TSX True Space Extension :CC)(OTCBB OTCBB See OTC Bulletin Board (OTCBB). :CCCFF), the world's largest supplier of North American North American named after North America. North American blastomycosis see North American blastomycosis. North American cattle tick see boophilusannulatus. ginseng ginseng (jĭn`sĕng), common name for the Araliaceae, a family of tropical herbs, shrubs, and trees that are often prickly and sometimes grow as climbing forms. , today announced 2005 net loss of $8.1 million, or $0.33 per basic share, compared to 2004 net earnings of $80,000, or $0.00 per basic share. Revenue decreased to $5.8 million in 2005 from $7.4 million in 2004. Gross margin declined to 6% in 2005 from 35% in 2004. "Fiscal 2005 featured a number of challenges for Chai-Na-Ta. A strong Canadian dollar has negatively affected ginseng prices and the Company's revenue and profitability. Buyers and grading houses remain resistant to carrying supply, due to concerns about currency fluctuations," said William Zen Zen Important school of Buddhism that claims to transmit the experience of enlightenment achieved by the Buddha Gautama. Arising as Chan in China in the 6th century (introduced by Bodhidharma), it divided into two schools, the Southern school, which believed in sudden , Chairman and Chief Executive Officer. "Rust is another challenge facing growers and, although mainly an aesthetic problem, results in lower root prices below costs," Mr. Zen continued. "Unfortunately, our 2005 harvest had a higher than expected level of rust in both growing regions A growing region is an area suited by climate and soil conditions to the cultivation of a certain type of crop. Most crops are cultivated not in one place only, but in several distinct regions in diverse parts of the world. leading to significant write-downs on inventory and crop costs in 2005. " With ginseng root prices falling throughout 2005, we realized an average selling price The average sales price of goods or commodities. Especially used in the retail sector and technology distribution. of about $10 per pound compared to $21 per pound in 2004. "While weak ginseng root prices remain a challenge, we feel that the demand for ginseng products remain strong, we sold most of our 2005 harvest rusty rust·y adj. rust·i·er, rust·i·est 1. Covered with rust; corroded. 2. Consisting of or produced by rust. 3. Of a yellowish-red or brownish-red color. 4. root in early 2006. We expect prices to stabilize stabilize See peg. with slight improvements towards the end of 2006," added Mr. Zen. "We will continue our focus on maximizing yield and quality while minimizing farm costs and operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. in 2006, "Mr. Zen said, "We are determined to face the challenges ahead of us and expect to bring sustainable growth and profitability to Chai-Na-Ta's shareholders." 2005 Fourth Quarter During the quarter ended December 31, 2005, revenue was $0.9 million, down from $1.1 million in the same quarter last year. Gross margin was 14.4% in the 2005 fourth quarter compared to a gross loss of 0.6% in the 2004 period. Net loss in the 2005 fourth quarter was $2.6 million, or $0.10 per basic share, compared to $660,000, or $0.03 per basic share, in the same period last year. Chai-Na-Ta Corp., based in Richmond, British Columbia, is the world's largest supplier of North American ginseng. The Company farms, processes and distributes North American ginseng as bulk root, and supplies processed material for the manufacture of value-added ginseng-based products. This news release contains forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. that reflect the Company's expectations regarding future events. These forward-looking statements involve risks and uncertainties, and actual events could differ materially from those projected. Such risks and uncertainties include, but are not limited to, the success of the Company's ongoing research programs, general business conditions, and other risks as outlined in the Company's periodic filings, Annual Report, and Form 20-F.
CHAI-NA-TA CORP.
CONSOLIDATED FINANCIAL HIGHLIGHTS
Three Months Ended Three Months Ended
December 31 December 31 December 31 December 31
2005 2004 2005 2004
Fourth Quarter Canadian $000 (i)US $000 Equivalents
Summary (except EPS and (except EPS and
(Unaudited) shares outstanding) shares outstanding)
Revenue $912 $1,079 $753 $829
Loss before taxes (6,369) (1,057) (5,257) (812)
Net loss for
the period (2,603) (660) (2,149) (507)
Loss per share
- basic (0.10) (0.03) (0.09) (0.02)
- fully diluted (0.10) (0.03) (0.09) (0.02)
Weighted average
shares outstanding
- basic 24,299,008 24,299,008 24,299,008 24,299,008
- fully diluted 24,299,008 24,299,008 24,299,008 24,299,008
Year Ended Year Ended
December 31 December 31 December 31 December 31
2005 2004 2005 2004
Annual Summary Canadian $000 (i)US $000 Equivalents
(except EPS and (except EPS and
shares outstanding) shares outstanding)
Revenue $5,826 $7,425 $4,808 $5,705
(Loss) earnings
before taxes (12,219) 128 (10,085) 98
Net (loss) earnings
for the year (8,131) 80 (6,711) 61
(Loss) earnings
per share
- basic (0.33) 0.00 (0.33) 0.00
- fully diluted (0.33) 0.00 (0.33) 0.00
Weighted average
shares outstanding
- basic 24,299,008 24,290,814 24,299,008 24,290,814
- fully diluted 24,299,008 34,789,122 24,299,008 34,789,122
(i)US $ Equivalents - for the period ended December 31, 2005
conversion rate used is 1.2116 (0.8254)
- for the period ended December 31, 2004
conversion rate used is 1.3015 (0.7683)
Amounts in US$ are included solely for the convenience of readers outside Canada. The inclusion of such amounts is not intended to imply that such amounts were transacted in, realized or settled in US$ at this rate or any other rate. Chai-Na-Ta Corp. (TSX:CC) (OTC Bulletin Board OTC Bulletin Board An electronic quotation listing of the bid and asked prices of OTC stocks that do not meet the requirements to be listed on the NASDAQ stock-listing system. :CCCFF) |
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