The Company expects to have 60 locations open by the close of its 2011 fiscal year ending March 30, 2011. Total revenue for the year is expected to be between $68.0 million and $70.0 million and basic and diluted earnings per share are expected to be in the range of $0.62 to $0.64. During fiscal year 2012, the Company expects to open between 20-30 new stores.
Nine Month Results
Revenue for the nine months ended December 31, 2010 increased 25.9% to $48.9 million compared to $38.9 million in the year ago period. Comparable store sales for the nine month period increased 7.8%, reflecting an increase in Prescription and Over-The-Counter drug sales, partially offset by a decrease in Traditional Chinese Medicine and Medical Device sales.
Gross profit for the nine month period increased 25.0% to $14.1 million compared to $11.3 million a year ago. Gross margin was 28.8% in the fiscal 2011 period versus 29.0% in the fiscal 2010 period.
Selling expense was $3.3 million for the nine months ended December 31, 2010 versus $2.0 million in the year ago period. The increase reflects an additional 27 stores in operation during the period, as well as the Company’s ongoing efforts to build increased awareness of the China Jo-Jo Drugstores brand.
General and administrative expenses for the nine month period were $2.8 million compared to $1.4 million in first nine months of fiscal 2010, reflecting operational support for additional stores open during the period, as well as increased costs associated with being a publicly traded company.
Income from operations in the fiscal 2011 period totaled $8.4 million versus $7.9 million in the first nine months of fiscal 2010, while operating margin was 16.9% compared to 20.4% a year ago.
Net income for the fiscal 2011 nine month period was $6.0 million, or basic and diluted earnings of $0.46 per share, compared to $5.9 million, or diluted and basic earnings of $0.68 per share, a year ago. The decline is primarily attributable to an additional 4.5 million basic and diluted shares outstanding, as well as higher operating expenses on a year-over-year basis. The increase in basic and diluted share count from 8.7 million in the fiscal 2010 period to 13.2 million in the fiscal 2011 period reflects the issuance of common shares in connection with the Company’s April 2010 public stock offering.