SHOUGUANG, China, March 15, 2016 (GLOBE NEWSWIRE) -- Gulf Resources, Inc. (Nasdaq:GURE) ("Gulf Resources" or the "Company"), a leading manufacturer of bromine, crude salt and specialty chemical products in China, today announced its financial results for the fourth quarter and fiscal year ended December 31, 2015.

Fiscal Year 2015 Highlights

• Net revenues increased 43% to $162,317,120.
• Gross profit increased 67% to $53,281,250.
• Income from operations increased 90% to $45,164,710.
• Net income increased 91% to $34,068,037.
• Primary EPS increased 63% to $0.75 from $0.46.
• Fully diluted EPS increased 61% to $0.74.
• Cash flow from operations increased 51% to $70,401,210.
• Cash was $133,606,392 or $2.89 per share.
• Net net cash, (cash minus all liabilities) was $114,974,041 ($2.48 per share*).
• Working capital was $174,794,678 ($3.78 per share*).
• Shareholders equity was $338,110,875 or $7.31 per share.

Fourth Quarter 2015 Highlights

• Net revenues increased 40.6% to $35.5 million
• Gross profit increased 67.5% to $11.2 million.
• Gross margin increased to 31.5% from 26.5%.
• Income from operations increased 140% to  $9.6 million.
• Bromine income from operations increased 8.7%.
• Crude Salt income from operations increased 3.9%.
• Chemical income from operations increased 194.1%.
• Operating margin was 27.0% compared to 15.8% for the fourth quarter of 2014.
• Net income was $7.3 million, or $0.16 per basic and diluted share, versus $2.9 million.
• EPS increased 152% to $0.16 from $0.07 per share.

Fiscal Year 2015 Financial Results

Cash flow from operations increased 51% to $70,401,210 from $46,573,777. This equals $1.51 per share. In the past two years, we have generated cash flow from operations of $116,974,987 or $2.53 per share, well in excess of our current stock price.

On a segment basis, Bromine sales to outside customers decreased 10% to $52,385,491 from $57,949,824. However, when intercompany transactions by SCRC are included, the overall decline is estimated to have been only 1.3%. Reported sales volume in tons decreased 17% to 16,569 tons, but with the inclusion of intercompany sales, the actual decline is much lower. The selling price of Bromine increased 10% to $3,162. At the present time, Bromine pricing remains strong. The decline in the value of the RMB has helped to increase prices. Even if the economy in China does not improve, we expect bromine prices to remain strong for 2016.

Gross profit margin in the Bromine segment was 30%, compared to 25% in the previous year. Income from operations increased 14% to $10,854,711.

In 2015, Gulf spent approximately $22.5 million on enhancement projects for the transmission channels and ducts and our existing bromine extraction to enhance the productivity and improve environmental controls in Factories No. 10 and 11. It expects to spend $15 million on enhancement projects for factories No. 1 and 9 in 2016. With its strong capital position, Gulf believes this spending will enable it to maintain an advantage over smaller competitors.

Revenue in crude salt declined by 2% to $10,494,939. Sales volume declined by 3%. The price per ton increased by 1%. Gross profit increased by 32.7%. As percentage of sales, it was 21% compared to 15% in the previous year. Income from operations increased 65% to $1,183,755.

Sales of chemicals increased 121% to $99,436,690 from $44,958,281.