Andatee China Marine Fuel Services Reports Second Quarter Financial Results

Andatee China Marine Fuel Services Reports Second Quarter Financial Results

DALIAN, China, Aug. 15, 2013 (GLOBE NEWSWIRE) -- Andatee China Marine Fuel
Services Corporation (Nasdaq:AMCF), a leading independent operator engaged in
the production, storage, distribution, trading of blended marine fuel oil for
cargo and fishing vessels in China, today announced its unaudited financial
results for the second quarter ended June 30, 2013.

Second Quarter 2013 Highlights

  *Revenuein the second quarter of 2013 was $75.8 million, a 9.6% increase
    from the second quarter of 2012
    
  *Gross profit increased 44% year over year to $3.9 million as compared to
    $2.7 million in the same period of 2012, while gross profit margin during
    the quarter improved 120 base points year over year to 5.2% from 4%
    
  *Operating income in the second quarter of 2013 was $1.1 million, a 2.0%
    increase from the corresponding period in 2012
    
  *The Company ended the quarter with cash balance of approximately $3.5
    million and restricted cash of $46.9 million.

"I am pleased to see the steady growth in our revenue as we have undertaken
some initiatives, such as facilities investment and product line expansion, in
a bid to provide our customers with easier access to Andatee's products and
services," commented Mr. Fengbin An, Chairman & CEO of Andatee Marine Fuel
Services Corporation, "During the quarter, we continued to expand our market
coverage beyond our traditional Northern China region to more extended
geographic areas, such as Shanghai and Zhejiang Province. Going forward, we
will not only focus on attracting new customers to our current product
offering, but also exploring various potential growth opportunities to enhance
our growth rate as well as profit margin," he concluded.

Second Quarter of 2013 Results

Revenue increased by $6.6 million, or 10%, from $69.12 million for the second
quarter ended June 30, 2012 to $75.7 million for the second quarter ended June
30, 2013. The increase in the Company's revenue was mainly due to the increase
in sales volume as well as selling price on certain key products.

For the three months ended June 30, 2013, #1 marine fuel represented 4.9% of
the Company's sales, #2 marine fuel represented 6.7% of sales, #3 marine fuel
represented 4.3% of sales, #4 marine fuel represented 64.7% of sales, 180CST
represented 19.4% of sales and no sales were reported on 120CST.

Cost of revenues increased by $5.4 million, or 8%, from $66.4 million for the
second quarter ended June 30, 2012 to $71.8 million for the second quarter
ended June 30, 2013 primarily due to increased sales volume from 74,353 tons
for the second quarter ended June 30, 2012 to 83,896 tons for second quarter
ended June 30, 2013.

Gross profit increased by $1.19 million, or 44%, to $3.9 million for the
quarter ended June 30, 2013 as compared to $2.7 million in the quarter ended
June 30, 2012. As a percentage of revenues, gross profit margin was 5.2% and
4% for the second quarter of 2013 and 2012, respectively.

Total operating expenses from continuing operations for the second quarter of
fiscal 2013 were $2.8 million, an increase of 64.7% from $1.7 million in the
prior year period.

Selling expenses decreased by $51,535, or 13%, from $409,510 for the second
quarter of 2012 to $357,975 in the second quarter of 2013. This decrease is
mainly due to reduced sales promotion expenses and lease expenses. As a
percentage of revenues, selling expenses decreased from 0.6% for the second
quarter of 2012 to 0.5% for the second quarter of 2013.

General and administrative expenses increased by $1.22 million, or 98%, from
$1.25 million for the second quarter of 2012 to $2.48 million for the second
quarter of 2013. The increase was caused by increases in the depreciation
expense, bad debt reserves, professional services fees and consulting fees. As
a percentage of revenues, general and administrative expenses increased from
1.8% for the second quarter of 2012 to 3.3% for the second quarter of 2013.

Interest expense increased by $1.9 million, from $0.92 million for the second
quarter ended June 30, 2012 to $2.84 million for the second quarter ended June
30, 2013. The increase in interest expense was due to the increased bank
acceptance bills for the second quarter ended June 30, 2013 as compared to the
second quarter ended June 30, 2012.

Net loss attributable to the Company increased by $1.94 million, from a net
income of $217,449 for the second quarter ended June 30, 2012 to net loss of
$1.81 million for the second quarter ended June 30, 2013. The increase in net
loss was mainly the result of increase in cost of revenue, increase in
operating expense and increase in interest expense for the period indicated.

Financial Condition

As of June 30, 2013, the Company had cash balance of approximately $3.5
million, and an addition to $46.9 million in restricted cash.

About Andatee China Marine Fuel Services

Andatee China Marine Fuel Services Corporation is a leading independent
operator engaged in the production, storage, distribution, and trading of
blended marine fuel oil for cargo and fishing vessels inChina. Headquartered
in theCity of Dalian, a key international shipping hub and an international
logistics center inNorthern China, Andatee maintains operations
inLiaoning,Shandong, Zhejiang Provinces and Shanghai area. Additional
information about the Company is available via the Company filing with The
Securities Exchange Commission atwww.sec.gov.

Safe Harbor Relating to the Forward Looking Statements

Statements contained in this press release not relating to historical facts
are forward-looking statements that are intended to fall within the safe
harbor rule under the Private Securities Litigation Reform Act of 1995. All
forward-looking statements included herein are based upon information
available to the Company as of the date hereof and, except as is expressly
required by the federal securities laws, the Company undertakes no obligation
to update or revise any forward-looking statements, whether as a result of new
information, changed circumstances or future events or for any other reason.
As a result, investors should not place undue reliance on these forward-
looking statements. To the extent that any statements made here are not
historical, these statements are essentially forward-looking. Forward-looking
statements can be identified by the use of words such as "expects," "plans,"
"will," "may," "anticipates," "believes," "should," "intends," "estimates" and
other words of similar meaning. The Company may also make written or oral
forward-looking statements in its periodic reports filed with the U.S.
Securities and Exchange Commission and other written materials and in oral
statements made by its officers, directors or employees to third parties.
These statements are subject to risks and uncertainties that cannot be
predicted or quantified and, consequently, actual results may differ
materially from those expressed or implied by these forward-looking
statements. Such risk factors include, without limitation, our ability to
properly execute our business model, to address price and demand volatility,
to counter weather and seasonal fluctuations, to attract and retain management
and operational personnel, potential volatility in future earnings,
fluctuations in the Company's operating results, our ability to expand
geographically into new markets and successfully integrate future
acquisitions, our ability to integrate and capitalize on the acquisitions in
various markets, PRC governmental decisions and regulation, and existing and
future competition that the Company is facing. These forward-looking
statements are subject to known and unknown risks and uncertainties that could
cause actual events to differ from the forward-looking statements. More
information about some of these risks and uncertainties may be found in the
Company's filings with the Securities and Exchange Commission under the
caption "Risk Factors" in such filings.

ANDATEE CHINA MARINE FUEL SERVICES CORPORATION. AND SUBSIDIARIES
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
                                                           
                                                           
                                             June 30, 2013  December 31, 2012
                                                           
ASSETS                                                      
Current assets                                              
Cash and cash equivalents                     $3,522,403   $1,625,705
Restricted cash                               46,909,212     9,173,002
Accounts receivable, net                      47,678,251     18,220,089
Inventories, net                              20,732,045     9,302,913
Advances to suppliers                         22,352,330     16,387,613
Deposits for land use rights                  2,332,664      698,291
Prepaid expense and other current assets      2,320,677      558,505
Deferred tax assets                           1,065,813      840,540
Total current assets                          146,913,395    56,806,658
                                                           
Property, plant and equipment, net            52,379,442     40,880,091
Construction in progress                      1,452,857      12,860,195
Equity investment                             1,312,450      --
Intangible assets, net                        8,882,727      8,953,602
Goodwill                                      1,238,169      1,213,036
                                                           
Total assets                                  $212,179,040 $120,713,582
                                                           
LIABILITIES AND EQUITY                                      
Current liabilities                                         
Short-term bank borrowings                    $19,357,870  $9,314,247
Bank note payable                             92,658,589     19,679,104
Accounts payable and accrued liabilities      19,258,163     8,367,697
Advances from customers                       7,182,189      8,472,233
Loan from third parties                       2,351,293      9,413,436
Related party loans payable                   4,302,092      509,255
Taxes payable                                 2,871,938      2,719,517
Other liabilities                             2,090,148      1,777,089
Total current liabilities                     150,072,282    60,252,578
                                                           
Warrant liability                             92,686         --
                                                           
Commitments and contingencies                 --            --
                                                           
Equity                                                      
Common stock, $0.001 par value; 50,000,000
shares authorized; 9,860,159 and 9,610,159
shares issued; 9,768,967 and 9,518,967 shares 9,860          9,610
outstanding as of June 30, 2013, and December
31, 2012,respectively
Treasury stock, at cost; 91,192 shares        (497,693)     (497,693)
Additional paid-in capital                    29,955,806     29,888,556
Accumulated other comprehensive income        5,621,023      4,297,827
Retained earnings                             19,562,445     19,513,573
Statutory reserve                             3,628,644      3,421,960
Total stockholders' equity of the Company     58,280,085     56,633,833
Noncontrolling interest                       3,733,987      3,827,171
Total equity                                  62,014,072     60,461,004
                                                           
Total liabilities and equity                  $212,179,040 $120,713,582


ANDATEE CHINA MARINE FUEL SERVICES CORPORATION. AND SUBSIDIARIES
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME
(LOSS)
                                                            
                   Three months ended June 30, Six months ended June 30, 2013
                                                ,
                   2013          2012          2013            2012
                                                            
Revenues            $75,766,037 $69,149,363 $129,397,690  $108,359,507
Cost of revenues    71,818,195    66,400,189    121,982,431     102,531,948
Gross profit        3,947,842     2,749,174     7,415,259       5,827,559
                                                            
Operating expenses                                           
Selling expenses    357,975       409,510       817,031         956,454
General and
administrative      2,486,902     1,258,168     4,136,767       2,405,462
expenses
Total operating     2,844,877     1,667,678     4,953,798       3,361,916
expenses
                                                            
Income from         1,102,965     1,081,496     2,461,461       2,465,643
operations
                                                            
Other income                                                 
(expense)
Interest income     13,628        27,505        225,048         127,758
Interest expense    (1,167,686)  (928,513)    (3,757,998)    (2,640,621)
Income (loss) from  (8,566)      --          16,350          --
equity investment
Change in fair      10,150        --          10,150          --
value of warrants
Other income        (33,496)     (11,026)     (169)          289,872
(expense)
Total other income  (1,185,970)  (912,034)    (1,829,835)    (2,222,991)
(expense)
                                                            
Income (loss)
before incometax   (83,005)     169,462       631,626         242,652
provision
                                                            
Provision for       52,668        35,520        469,254         37,420
Income Taxes
                                                            
Net income (loss)   (135,673)    133,942       162,372         205,232
Less: net loss
attributable to     (56,259)     (83,507)     (93,184)       (170,085)
noncontrolling
interest
                                                            
Net income (loss)
attributable to the $(79,414)   $217,449    $255,556      $375,317
Company
                                                            
Other comprehensive                                          
income (loss)
Total foreign
currency            1,032,940     (33,280)     1,615,051       276,663
translation
adjustment
Less: foreign
currency
translation
adjustment          (60,466)     --          (291,855)      --
attributable to
non-controlling
interest
Foreign currency
translation
adjustment          972,474       (33,280)      1,323,196       276,663
attributable to the
Company
                                                            
Comprehensive       $893,060    $184,169    $1,578,752    $651,980
income (loss)
                                                            
Basic and diluted
weighted average    9,674,048     9,610,159     9,642,103       9,642,103
shares outstanding
                                                            
Basic and diluted
net earnings (loss) $(0.01)     $0.02       $(0.03)       $0.04
per share

CONTACT: For more information, please contact:
        
         Company Contact:
         Mr. Hao Wang
         Chief Financial Officer
         Andatee China Marine Fuel Services Corporation
         Phone: +86-411-8360-4683
 
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