This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Zhongpin's Management Discusses Q2 2012 Results - Earnings Call Transcript

Our debt to total capital at June 30 was 50.5%. Our net debt to total capital was 42.7%, subtracting cash and cash equivalents from both total debt and total capital. Interest coverage for the second quarter 2012 was 3 times on net interest expense, and interest coverage for the six months of 2012 was 2.9 times on net interest expense.

We are nearly at the limit of our debt leverage and interest coverage, so we have a little financial flexibility remaining should we need it. It’s important to understand that we intentionally adapt that to be sure that we can finance the Company’s expansion in the next 12 months, even if the credit markets tighten. So our financial flexibility is in tact.

Next is an update on our stock repurchase program. In the third quarter of 2011, the Board of Directors increased the authorized amount of our stock repurchase program to $40 million under the repurchase program through March 31, 2012. Zhongpin has purchased a total of 3.2 million of its shares in the open market for $36.2 million, including sales commissions. After Chairman Zhu issued this Non-binding Going Private Proposal on March 27, 2012 the Company’s Board of Directors suspended the repurchase program. So there were no shares repurchased in the second quarter of 2012.

Next is our guidance for the year 2012. We are maintaining our previous guidance. Our guidance for 2012 is based on several assumptions that include Continuation of China's policies designed to stimulate domestic consumption and economic growth. Average hog prices in China are expected to decrease about 15% to 20% in 2012 from 2011, based on the assumed forecasted trend for the supply of live hogs and the increasing cost to raise hogs.

Read the rest of this transcript for free on

3 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,712.66 +34.43 0.19%
S&P 500 2,061.02 +4.87 0.24%
NASDAQ 4,891.2190 +27.8570 0.57%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs