BAODING, China, Nov. 16, 2024 /PRNewswire/ -- IT Tech Packaging Inc. (NYSE American: ITP) ("IT Tech Packaging" or the "Company"), a leading manufacturer and distributor of diversified paper products in North China, today announced its unaudited financial results for the nine and three months ended September 30, 2024.
Third Quarter 2024 Unaudited Financial Results
| For the Three Months Ended September 30, | |||||
| ($ millions)
| 2024 |
| 2023 | % Change
| |
| Revenues | 25.08
| 15.77 |
| 59.03 % | |
| Regular Corrugating Medium Paper ("CMP")*
| 20.91 | 11.95
| 74.93 % | ||
| Light-Weight CMP**
| 4.13 |
| 3.47 | 19.16 %
| |
| Offset Printing Paper | -
| 0.07 |
| - | |
| Tissue Paper Products
| - | 0.26 | - | ||
| Face Masks | - | 0.02 | - | ||
| Gross profit (loss) | 1.92 | (0.15) | 1351.37 % | ||
| Gross profit (loss) margin | 7.64 % | -0.97 % | 8.61pp*** | ||
| Regular Corrugating Medium Paper ("CMP")* | 7.54 % | 7.01 % | 0.53pp**** | ||
| Light-Weight CMP** | 7.33 % | -7.47 % | 14.80pp**** | ||
| Offset Printing Paper | - | 7.53 % | - | ||
| Tissue Paper Products*** | - | -278.10 % | |||
| Face Masks | - | -15.75 % | - | ||
| Operating income（loss） | (1.46) | (2.48) | -41.07 % | ||
| Net income (loss) | (1.97) | (1.98) | -0.07 % | ||
| EBITDA | 2.03 | 1.69 | 20.12 % | ||
| Basic and Diluted earnings (loss) per share | (0.20) | (0.20) | - | ||
| * Products from PM6 | |||||
| ** Products from PM1 | |||||
| *** Products from PM8 and PM9 | |||||
| **** pp represents percentage points | |||||
- Revenue increased by 59.03% to approximately $25.08 million as compared to the same period of last year. This was mainly due to the increase of sales volume of corrugating medium paper ("CMP"), partially offset by the decrease in average selling prices ("ASP") of CMP.
- Gross profit increased by 1351.37% to approximately $1.92 million as compared to the same period of last year. Total gross profit margin increased by 8.61 percentage point to 7.64%.
- Loss from operations was approximately $1.46 million, compared to approximately $2.48 million for the same period of last year.
- Net loss was approximately $1.97 million, or loss per share of $0.20, compared to net loss of approximately $1.98 million, or loss per share of $0.20, for the same period of last year.
- Earnings before interest, taxes, depreciation and amortization ("EBITDA") was approximately $2.03 million, compared to$1.69 million for the same period of last year.
For the third quarter of 2024, total revenue increased by 59.03%, to approximately $25.08 million from approximately $15.77 million for the same period of last year. This was mainly due to the increase of sales volume of corrugating medium paper ("CMP"), partially offset by the decrease in average selling prices ("ASP") of CMP.
The following table summarizes revenue, volume and ASP by product for the third quarter of 2024 and 2023, respectively:
| For the Three Months Ended September 30, | |||||||||||
| 2024 | 2023 | ||||||||||
| Revenue ($'000) | Volume (tonne) | ASP ($/tonne) | Revenue ($'000) | Volume (tonne) | ASP ($/tonne) | ||||||
| Regular CMP | 20,910 | 62,121 | 337 | 11,954 | 34,186 | 350 | |||||
| Light-Weight CMP | 4,134 | 12,763 | 324 | 3,470 | 10,210 | 340 | |||||
| Offset Printing Paper | - | - | - | 69 | 170 | 407 | |||||
| Tissue Paper Products | - | - | - | 264 | 241 | 1,096 | |||||
| Total | 25,044 | 74,884 | 334 | 15,757 | 44,807 | 352 | |||||
| Revenue ($'000) | Volume (thousand pieces) | ASP ($/thousand pieces) | Revenue ($'000) | Volume (thousand pieces) | ASP ($/thousand pieces) | ||||||
| Face Masks | - | - | - | 15 | 507 | 30 | |||||
Of the total CMP sales, revenue from regular CMP increased by 74.93%, to approximately $20.91 million for the third quarter of 2024, compared to revenue of approximately $11.95 million for the same period of last year. The Company sold 62,121 tonnesof regular CMP at an ASP of $337/tonne during the third quarter of 2024, compared to 34,186 tonnes at an ASP of $350/tonne for the same period of last year. Revenue from light-weight CMP increased by 19.16%, to approximately $4.13 million for the third quarter of 2024, compared to revenue of approximately $3.47 million for the same period of last year. The Company sold 12,763 tonnes of light-weight CMP at an ASP of $324/tonne for the third quarter of 2024, compared to 10,210 tonnes at an ASP of $340/tonne for the same period of last year.
Revenue from offset printing paper was $nil for the three months ended September 30, 2024, compared with revenue of $0.07 million for the same period of last year. The Company sold 170 tonnes of offset printing paper at an ASP of $407/tonne in the third quarter of 2023.
Revenue from tissue paper products was $nil for the third quarter of 2024, compared to $0.26 million for the third quarter of 2023. The Company sold 241 tonnes of tissue paper products at an ASP of $1,096/tonne during the third quarter of 2023.
Revenue from face masks was $nil for the third quarter of 2024, compared to $0.02 nillion for the same period of last year. The Company sold 507 thousand pieces of face masks during the third quarter of 2023.
Gross Profit and Gross Margin
Total cost of sales increased by 45.46%, to approximately $23.16 million for the third quarter of 2024 from approximately $15.92 million for the same period of last year. This was mainly due to the increase in sales quantity of CMP, partially offset by the decrease of the unit material cost of CMP products. Costs of sales per tonne for regular CMP, light-weight CMP, offset printing paper, and tissue paper products were $311, $300, $nil and $nil, respectively, for the third quarter of 2024, compared to $325, $365, $377 and $4,143 respectively, for the same period of last year.
Total gross profit was approximately $1.92 million for the third quarter of 2024, compare to the gross loss of approximately $0.15 million for the same period of last year as a result of factors described above. Overall gross profit margin was 7.64% for the third quarter of 2024, compared to gross loss margin of 0.97% for the same period of last year. Gross profit(loss) margins for regular CMP, light-weight CMP, offset printing paper, tissue paper products and face mask products were 7.54%, 7.33%, n/a, n/a and n/a, respectively, for the third quarter of 2024, compared to 7.01%, -7.47%, 7.53%, -278.10% and -15.75%, respectively, for the same period of last year.
Selling, General and Administrative Expenses
Selling, general and administrative expenses ("SG&A") increased by 44.83%, to approximately $3.38 million for the third quarter of 2024 from approximately $2.33 million for the same period of last year.
Loss from Operations
Loss from operations was approximately $1.46 million for the third quarter of 2024, a decrease of 41.07%, from loss from operations of approximately $2.48 million for the same period of last year. Operating loss margin was 5.84% for the third quarter of 2024, compared to operating loss margin of 15.75% for the same period of last year.
Net Loss
Net loss was approximately $1.97 million, or loss per share of $0.20, for the third quarter of 2024, compared to net loss of approximately $1.98 million, or loss per share of $0.20, for the same period of last year.
EBITDA
EBITDA was approximately $2.03 million for the third quarter of 2024, compared to approximately $1.69 million for the same period of last year.
Note 1: Non-GAAP Financial Measures
In addition to our U.S. GAAP results, this press release includes a discussion of EBITDA, a non-GAAP financial measure as defined by the Securities and Exchange Commission ("SEC"). The Company defines EBITDA as net income before interest, income taxes, depreciation and amortization. EBITDA is a key measure used by management to evaluate our results and make strategic decisions. Management believes this measure is useful to investors because it is an indicator of operational performance. Because not all companies use identical calculations, the Company's presentation of EBITDA may not be comparable to similarly titled measures of other companies, and should not be viewed as an alternative to measures of financial performance or changes in cash flows calculated in accordance with the U.S. GAAP.
Reconciliation of Net Income to EBITDA
(Amounts expressed in US$)
| For the Three Months Ended September 30, | |||||
| ($ millions) | 2024 | 2023 | |||
| Net loss | -1.97 | -1.98 | |||
| Add: Income tax | 0.35 | 0.00 | |||
| Net interest expense | 0.17 | 0.25 | |||
| Depreciation and amortization | 3.48 | 3.42 | |||
| EBITDA | 2.03 | 1.69 | |||
| For the Nine Months Ended September 30, | ||||||
| ($ millions) | 2024 | 2023 | % Change | |||
| Revenues | 58.20 | 65.58 | -11.26 % | |||
| Regular Corrugating Medium Paper ("CMP")* | 48.64 | 50.35 | -3.39 % | |||
| Light-Weight CMP** | 9.44 | 11.07 | -14.76 % | |||
| Offset Printing Paper | - | 3.23 | - | |||
| Tissue Paper Products | - | 0.83 | - | |||
| Face Masks | - | 0.10 | - | |||
| Gross profit | 5.58 | 0.75 | 644.60 % | |||
| Gross profit (loss) margin | 9.59 % | 1.14 % | 8.45 pp**** | |||
| Regular Corrugating Medium Paper ("CMP")* | 9.44 % | 5.26 % | 4.18 pp**** | |||
| Light-Weight CMP** | 9.33 % | 1.68 % | 7.65 pp**** | |||
| Offset Printing Paper | - | 2.53 % | - | |||
| Tissue Paper Products*** | - | -258.64 % | - | |||
| Face Masks | - | -9.26 % | - | |||
| Operating loss | (4.42) | (5.78) | -23.50 % | |||
| Net loss | (5.80) | (5.96) | -2.75 % | |||
| EBITDA | 5.94 | 5.73 | 3.66 % | |||
| Basic and Diluted loss per share | (0.58) | (0.59) | -1.69 % | |||
| * Products from PM6 | ||||||
| ** Products from PM1 | ||||||
| *** Products from PM8 and PM9 | ||||||
| **** pp represents percentage points | ||||||
For the nine months ended September 30, 2024, total revenue decreased by 11.26%, to approximately $58.20 million from approximately $65.58 million for the same period of last year. This was mainly due to the decrease in ASP of CMP, partially offset by the increase in sales quantity of regular CMP.
The following table summarizes revenue, volume and ASP by product for the nine months ended September 30, 2024 and 2023, respectively:
| For the Nine Months EndedSeptember30, | ||||||||||||||
| 2024 | 2023 | |||||||||||||
| Revenue ($'000) | Volume (tonne) | ASP ($/tonne) | Revenue ($'000) | Volume (tonne) | ASP ($/tonne) | |||||||||
| Regular CMP | 48,644 | 140,574 | 346 | 50,353 | 135,912 | 370 | ||||||||
| Light-Weight CMP | 9,440 | 28.345 | 333 | 11,074 | 31,106 | 356 | ||||||||
| Offset Printing Paper | - | - | - | 3,225 | 5,573 | 579 | ||||||||
| Tissue Paper Products | - | - | - | 831 | 726 | 1,145 | ||||||||
| Total | 58,084 | 168,919 | 344 | 65,483 | 173,317 | 378 | ||||||||
| Revenue ($'000) | Volume (thousand pieces) | ASP ($/thousand pieces) | Revenue ($'000) | Volume (thousand pieces) |
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