JUNAN COUNTY, China,
Aug. 15, 2011
/PRNewswire-Asia-FirstCall/ -- American Lorain Corporation (NYSE Amex: ALN)
("American Lorain" or the "Company"), an international processed
snack foods, convenience foods, and frozen foods company based in
the Shandong Province,
China, today announced financial
results for its second quarter ended June
30, 2011.
Q2 2011 Operational Highlights
- Each product segment increased by over 19% in sales
year-over-year
- Convenience food segment continued to grow as a percent of
total revenue
- Continued channel building efforts and progress such as sales
to railway system
Q2 2011 Financial Highlights
- Total revenues of $35.7 million,
an increase of 22.3% year over year
- Gross margins decreased slightly to 21.4%, compared to 23.0%
year-over-year and 22.7% at 12/31/2010
- Net income attributable to common stockholders of $3.3 million, up 21.8% year-over-year
- Diluted earnings per share of $0.09
2011 Operations and Market Overview
Sales by categories of product consisted of the following for
the three months ended June 30, 2011
and 2010:
|
Three months ended
|
|
|
Category
|
|
6/30/2011
|
|
6/30/2010
|
%
Increase
|
|
|
Chestnut
|
$
|
17,719,636
|
$
|
14,868,240
|
19.2%
|
|
|
Convenience food
|
|
12,807,758
|
|
10,269,991
|
24.7%
|
|
|
Frozen food
|
|
5,199,255
|
|
4,080,083
|
27.4%
|
|
|
Total
|
$
|
35,726,650
|
$
|
29,218,314
|
22.3%
|
|
|
|
|
|
|
|
|
|
Categories of product as a percentage of sales for the three
months ended June 30, 2011 and
2010:
|
Three
months ended
|
|
|
Category
|
6/30/2011 % of Total Revenues
|
6/30/2010 % of Total
Revenues
|
% Difference
|
|
|
Chestnut
|
49.6%
|
50.9%
|
(1.3%)
|
|
|
Convenience food
|
35.8%
|
35.1%
|
0.7%
|
|
|
Frozen food
|
14.6%
|
14.0%
|
0.6%
|
|
|
Total
|
100%
|
100%
|
|
|
|
|
|
|
|
|
American Lorain's Chairman and CEO, Mr. Si Chen, stated, "We are
satisfied with the Company's performance in the second quarter,
during which we have achieved solid growth in each of our three
business lines despite various difficulties such as the general
inflation. We believe the largest contributor to our growth in the
coming months will be the continued expansion of our convenience
foods segment, as well as the chestnut food segment as we enter the
seasonally strong quarters. We believe the continuous focus on
product quality and building our distribution channels and brand
equity is key to the Company's success in a competitive landscape
and will continue to execute on these strategies in the coming
months."
2011 Second Quarter Financial Review
|
American
Lorain Corporation
Selected
Financial Statements in USD ($ in 000s)
|
|
|
|
|
|
|
3 months
ended
|
|
3 months
ended
|
% Increase
|
|
|
|
|
|
|
6/30/2011
|
|
6/30/2010
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales
|
|
|
|
$35,726,650
|
|
$29,218,314
|
22.3%
|
|
|
Cost of Revenues
|
|
|
($28,070,066)
|
|
($22,499,645)
|
24.8%
|
|
|
Gross Profit
|
|
|
$7,656,584
|
|
$6,718,669
|
14.0%
|
|
|
Gross Profit Ratio
|
|
|
21.4%
|
|
23.0%
|
|
|
|
Income from
operations
|
|
|
$4,974,450
|
|
$4,591,463
|
8.3%
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings before tax
|
|
|
$4,747,488
|
|
$3,729,113
|
27.3%
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income attributable to
common stockholders
|
$3,262,451
|
|
$2,679,613
|
21.8%
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per
share
|
|
|
$0.09
|
|
$0.10
|
(10.0%)
|
|
|
Weighted average diluted shares
outstanding
|
35,030,343
|
|
26,750,592
|
31.0%
|
|
|
|
|
|
|
|
|
|
|
- The Company reported sales for the 2011 second quarter of
$35.7 million, an increase of 22.3%
compared to $29.2 million in the
second quarter of 2010.
- Gross profit increased14.0% to $7.7
million from $6.7 million in
the prior-year period. Gross margin declined slightly to 21.4% for
the three months ended June 30, 2011,
from 23.0% for the prior-year period, due to inflation pressure.
However, American Lorain expects that its margins will remain
relatively stable and in the 20-25% range in the coming
months.
- Income from operations during the period was $5.0 million, an increase of 8.3% from
$4.6 million reported in the prior
year period. Operating margin for the 2011 second quarter was 13.9%
compared with 15.7% in the prior year.
- The Company had net income attributable to common shareholders
for the second quarter of 2011 of $3.3
million, or $0.09 per diluted
share based on 35.0 million diluted shares outstanding, compared to
$2.7 million, or $0.10 per diluted share based on 26.8 million
diluted shares outstanding in the prior-year period. The Company's
net margin for the period was 9.1% compared with 9.2% in the prior
year period.
Balance Sheet Highlights and Financial
Position
|
(in millions)
|
|
6/30/2011
|
|
12/31/2010
|
%
Increase
|
|
|
Cash and Cash
Equivalents
|
$
|
9.6
|
$
|
12.7
|
(24.5%)
|
|
|
Restricted Cash
|
|
7.1
|
|
2.3
|
206.0%
|
|
|
Working Capital
|
|
74.8
|
|
57.4
|
30.3%
|
|
|
Total Liabilities
|
|
43.2
|
|
45.6
|
(5.4%)
|
|
|
Stockholders'
Equity
|
|
138.7
|
|
129.3
|
7.3%
|
|
|
|
|
|
|
|
The Company had a book value per share at June 30, 2011 of $4.03.
Outlook for 2011
Mr. Chen concluded, "We are optimistic about the second half of
2011 based on what we are seeing thus far. The efforts of our
management group in all three business segments are producing
greater efficiencies in both the operating infrastructure and costs
control which will help us as we continue to grow. Despite the
current uncertainties weighing on the global economy, we remain
optimistic about the outlook of our market growth in China and as well as abroad because of growing
demand, improving brand recognition, and balanced supply. We will
continue to execute on the Company's core strategies of driving
growth through each of our business segments."
Conference Call
The Company will also discuss these results in a conference call
tomorrow morning (August 16, 2011) at 8:00
a.m. ET.
Participant Dial-In Numbers:
|
(In the United States):
|
877-407-8031
|
|
|
(International):
|
201-689-8031
|
|
|
|
Webcast
The call will also be simultaneously broadcast over the
Internet. To listen to the live webcast, please go to
http://www.americanlorain.com and click on the conference call
link, or go directly to:
http://www.investorcalendar.com/IC/CEPage.asp?ID=165541.
Phone Replay Information
A recorded replay of the call will be available until
11:59 p.m. ET on August 19, 2011. Listeners may dial:
|
(In the United States):
|
877-660-6853
|
|
|
(International):
|
201-612-7415
|
|
|
|
The following replay passcodes are both required for
playback:
|
Account #: 286
|
|
|
Conference ID #:
377216
|
|
|
About American Lorain Corporation
American Lorain Corporation
products include chestnut products, convenience food products and
frozen food products. The Company currently sells over 240 products
to 26 provinces and administrative regions in China as well as to 42 foreign countries. The
Company operates through its five direct and indirect subsidiaries
and one leased factory located in China. For further information about American
Lorain Corporation, please visit the
Company's website at http://www.americanlorain.com.
Forward-Looking Statements
This press release contains certain "forward-looking statements"
that involve a number of risks and uncertainties. There can be no
assurance that such statements will prove to be accurate and the
actual results and future events could differ materially from
management's current expectations. Such factors include, but are
not limited to, the Company's ability to obtain the necessary
financing to continue and expand operations, to market its products
in new markets and to offer products at competitive pricing, to
attract and retain management, and to integrate and maintain
technical information and management information systems, political
and economic factors in the PRC, compliance requirement of laws and
regulations of the PRC, the effects of currency policies and
fluctuations, general economic conditions and other factors
detailed from time to time in the Company's filings with the United
States Securities and Exchange Commission and other regulatory
authorities. The Company undertakes no obligation to publicly
update or revise any forward-looking statements, whether as a
result of new information, future events or otherwise.
|
For more information, please
contact:
|
|
|
American Lorain
Corporation
|
|
|
Mr. David She, CFO
|
|
|
+86-10 8411 3393
|
|
|
david.she@americanlorain.com
|
|
|
www.americanlorain.com
|
|
|
|
AMERICAN
LORAIN CORPORATION
CONSOLIDATED
STATEMENTS OF INCOME
FOR THE
THREE AND SIX
MONTHS
ENDEDJUNE 30, 2011 and
2010
(Stated in
US Dollars)
|
|
|
|
Three months ended June 30,
|
|
|
Six months ended June 30,
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2011
|
|
2010
|
|
|
2011
|
|
2010
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net revenues
|
$
|
35,726,650
|
$
|
29,218,314
|
|
$
|
66,176,455
|
$
|
53,778,530
|
|
|
Cost of revenues
|
|
(28,070,066)
|
|
(22,499,645)
|
|
|
(51,744,961)
|
|
(41,335,771)
|
|
|
Gross profit
|
$
|
7,656,584
|
$
|
6,718,669
|
|
$
|
14,431,493
|
$
|
12,442,759
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses
|
|
|
|
|
|
|
|
|
|
|
|
Selling and marketing
expenses
|
|
(1,088,768)
|
|
(1,194,996)
|
|
|
(2,451,454)
|
|
(2,567,348)
|
|
|
General and administrative
expenses
|
|
(1,593,366)
|
|
(932,210)
|
|
|
(3,069,313)
|
|
(1,948,662)
|
|
|
|
(2,682,134)
|
|
(2,127,206)
|
|
|
(5,520,767)
|
|
(4,516,010)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income
|
$
|
4,974,450
|
$
|
4,591,463
|
|
$
|
8,910,727
|
$
|
7,926,749
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment income
|
|
-
|
|
589
|
|
|
-
|
|
589
|
|
|
Government subsidy
income
|
|
302,259
|
|
196,003
|
|
|
595,352
|
|
377,424
|
|
|
Interest and other
income
|
|
102,372
|
|
8,901
|
|
|
149,457
|
|
130,982
|
|
|
Other expenses
|
|
(21,483)
|
|
(44,714)
|
|
|
(181,055)
|
|
(72,237)
|
|
|
Interest expense
|
|
(610,111)
|
|
(1,023,129)
|
|
|
(1,263,235)
|
|
(1,943,553)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings before tax
|
$
|
4,747,488
|
$
|
3,729,113
|
|
$
|
8,211,247
|
$
|
6,419,954
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax
|
|
(1,277,553)
|
|
(857,604)
|
|
|
(2,173,421)
|
|
(1,529,596)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
$
|
3,469,935
|
$
|
2,871,509
|
|
$
|
6,037,826
|
$
|
4,890,358
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other comprehensive
income:
|
|
|
|
|
|
|
|
|
|
|
|
Foreign currency translation
gain
|
|
1,875,108
|
|
400,424
|
|
|
3,107,991
|
|
419,885
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Comprehensive income
|
$
|
5,345,043
|
$
|
3,271,933
|
|
$
|
9,145,817
|
$
|
5,310,243
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income attributable
to:
|
|
|
|
|
|
|
|
|
|
|
|
-Common Stockholders
|
$
|
3,262,451
|
$
|
2,679,613
|
|
$
|
5,688,739
|
$
|
4,540,144
|
|
|
-Non-controlling
Interest
|
|
207,484
|
|
191,896
|
|
|
349,087
|
|
350,214
|
|
|
Net income
|
$
|
3,469,935
|
$
|
2,871,509
|
|
$
|
6,037,826
|
$
|
4,890,358
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share
|
|
|
|
|
|
|
|
|
|
|
|
-
Basic
|
$
|
0.09
|
$
|
0.10
|
|
$
|
0.17
|
$
|
0.17
|
|
|
-
Diluted
|
$
|
0.09
|
$
|
0.10
|
|
$
|
0.16
|
$
|
0.17
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares
outstanding
|
|
|
|
|
|
|
|
|
|
|
|
-
Basic
|
|
34,427,582
|
|
26,075,413
|
|
|
34,427,582
|
|
26,075,413
|
|
|
-
Diluted
|
|
35,030,343
|
|
26,750,592
|
|
|
35,030,343
|
|
26,750,592
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AMERICAN
LORAIN CORPORATION
CONSOLIDATED
BALANCE SHEETS
AT JUNE 30, 2011 AND
DECEMBER 31, 2010
|
|
|
|
|
|
(Audited)
|
|
|
|
At June 30,
|
|
At December 31,
|
|
|
ASSETS
|
|
2011
|
|
2010
|
|
|
Current assets
|
|
|
|
|
|
|
Cash and cash
equivalents
|
$
|
9,605,538
|
$
|
12,730,626
|
|
|
Restricted cash
|
|
7,064,127
|
|
2,308,898
|
|
|
Short-term investment
|
|
6,769,421
|
|
9,447,585
|
|
|
Trade accounts
receivable
|
|
27,002,950
|
|
33,226,612
|
|
|
Other receivables
|
|
1,841,750
|
|
1,492,850
|
|
|
Inventories
|
|
41,097,859
|
|
29,807,198
|
|
|
Advance to suppliers
|
|
8,027,308
|
|
7,744,976
|
|
|
Prepaid expenses and
taxes
|
|
467,407
|
|
434,061
|
|
|
Deferred tax
asset
|
|
106,100
|
|
103,713
|
|
|
Security deposits and other
Assets
|
|
628,998
|
|
693,858
|
|
|
Total current assets
|
$
|
102,611,458
|
$
|
97,990,377
|
|
|
|
|
|
|
|
|
Non-current
assets
|
|
|
|
|
|
|
Investment
|
|
464,181
|
|
-
|
|
|
Property, plant and
equipment, net
|
|
73,771,569
|
|
72,095,007
|
|
|
Land use rights,
net
|
|
4,911,645
|
|
4,877,438
|
|
|
Deposit
|
|
169,911
|
|
20,297
|
|
|
TOTAL ASSETS
|
$
|
181,928,763
|
$
|
174,983,119
|
|
|
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
|
|
Current liabilities
|
|
|
|
|
|
|
Short-term bank loans
|
$
|
16,428,735
|
$
|
25,164,469
|
|
|
Long-term debt – current
portion
|
|
56,089
|
|
218,935
|
|
|
Notes payable
|
|
3,868,173
|
|
4,249,977
|
|
|
Accounts payable
|
|
4,091,972
|
|
6,284,532
|
|
|
Taxes payables
|
|
1,357,095
|
|
3,266,502
|
|
|
Accrued liabilities and other
payables
|
|
1,463,710
|
|
1,335,947
|
|
|
Customers deposits
|
|
586,415
|
|
89,370
|
|
|
Total current
liabilities
|
$
|
27,852,188
|
$
|
40,609,732
|
|
|
|
|
|
|
|
|
Long-term liabilities
|
|
|
|
|
|
|
Long-term debt
|
|
15,330,667
|
|
5,030,930
|
|
|
|
|
|
|
|
|
TOTAL LIABILITIES
|
$
|
43,182,855
|
$
|
45,640,662
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Audited)
|
|
|
|
At June 30,
|
|
At December 31,
|
|
|
|
2011
|
|
2010
|
|
|
STOCKHOLDERS'
EQUITY
|
|
|
|
|
|
|
Preferred Stock, $.001 par
value, 5,000,000 shares authorized; 0 shares issued and outstanding
at December 31, 2010 and 2009, respectively
|
|
|
|
-
|
|
|
Common stock, $0.001 par value,
200,000,000 shares authorized; 34,419,709 and 30,240,202 shares
issued and outstanding as of December 31, 2010 and 2009,
respectively
|
|
34,445
|
|
34,420
|
|
|
Additional paid-in
capital
|
|
52,676,854
|
|
52,371,481
|
|
|
Statutory reserves
|
|
12,069,925
|
|
11,340,739
|
|
|
Retained earnings
|
|
53,647,928
|
|
48,688,375
|
|
|
Accumulated other comprehensive
income
|
|
12,535,972
|
|
9,475,745
|
|
|
Non-controlling
interests
|
|
7,780,784
|
|
7,431,697
|
|
|
|
|
|
|
|
|
TOTAL
STOCKHOLDER'S
EQUITY
|
$
|
138,745,907
|
$
|
129,342,457
|
|
|
|
|
|
|
|
|
TOTAL LIABILITIES
AND
|
|
|
|
|
|
|
STOCKHOLDER'S EQUITY
|
$
|
181,928,763
|
$
|
174,983,119
|
|
|
|
|
|
|
|
AMERICAN
LORAIN CORPORATION
CONSOLIDATED
STATEMENTS OF CASH FLOW
FOR THE
THREE AND SIX
MONTHS ENDED
JUNE 30, 2011 AND
2010
(Stated in
US Dollars)
|
|
|
|
Three months ended June 30,
|
|
|
Six months ended June 30,
|
|
|
|
2011
|
|
2010
|
|
|
2011
|
|
2010
|
|
|
Cash flows from operating
activities
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
$
|
3,469,935
|
$
|
2,871,509
|
|
$
|
6,037,826
|
$
|
4,890,358
|
|
|
Stock and share based
compensation
|
|
131,671
|
|
205,943
|
|
|
305,373
|
|
454,949
|
|
|
Depreciation
|
|
669,969
|
|
322,416
|
|
|
1,141,935
|
|
687,985
|
|
|
Amortization
|
|
49,549
|
|
33,341
|
|
|
94,435
|
|
69,061
|
|
|
Write down/(gain) on
short-term investment
|
|
(92,673)
|
|
-
|
|
|
(47,763)
|
|
-
|
|
|
(Increase)/decrease in
accounts & other receivables
|
|
(5,627,103)
|
|
4,205,909
|
|
|
6,371,808
|
|
8,294,930
|
|
|
(Increase)/decrease in
inventories
|
|
(2,366,929)
|
|
1,798,055
|
|
|
(11,290,660)
|
|
(7,675,643)
|
|
|
(Increase)/decrease in
prepayment
|
|
(77,666)
|
|
972,209
|
|
|
(315,679)
|
|
734,094
|
|
|
(Increase)/decrease in
deferred tax asset
|
|
(1,411)
|
|
|
|
|
(2,388)
|
|
-
|
|
|
Increase/(decrease) in
accounts and other payables
|
|
(1,583,873)
|
|
(1,648,161)
|
|
|
(3,974,205)
|
|
(1,950,117)
|
|
|
Net cash (used
in)/provided by operating activities
|
|
(5,428,531)
|
|
8,761,221
|
|
|
(1,679,318)
|
|
5,505,617
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from investing
activities
|
|
|
|
|
|
|
|
|
|
|
|
Proceeds from short-term
investments
|
|
467,879
|
|
-
|
|
|
2,166,220
|
|
22,227
|
|
|
(Increase)/decrease in
restricted cash
|
|
(2,205,347)
|
|
376,613
|
|
|
(4,755,229)
|
|
558,448
|
|
|
Payment of construction in
progress
|
|
(90,840)
|
|
|
|
|
(471,105)
|
|
|
|
|
Payment of land use
rights
|
|
(76,740)
|
|
(18,318)
|
|
|
(128,642)
|
|
(33,205)
|
|
|
Payments for purchase of
equipment & plant
|
|
(1,567,871)
|
|
(9,618,218)
|
|
|
(2,347,391)
|
|
(10,045,753)
|
|
|
Decrease (increase) in
deposit
|
|
(154,034)
|
|
-
|
|
|
(84,754)
|
|
-
|
|
|
Net cash used in investing
activities
|
|
(3,626,952)
|
|
(9,259,923)
|
|
|
(5,620,902)
|
|
(9,498,283)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from financing
activities
|
|
|
|
|
|
|
|
|
|
|
|
Bank borrowings
|
|
6,733,544
|
|
5,297,856
|
|
|
18,183,012
|
|
23,151,602
|
|
|
Repayment of bank
loans
|
|
(9,406,948)
|
|
(2,900,729)
|
|
|
(20,980,396)
|
|
(20,861,829)
|
|
|
Notes payable
|
|
763,347
|
|
-
|
|
|
3,816,736
|
|
-
|
|
|
Issue of common stock
|
|
25
|
|
-
|
|
|
25
|
|
-
|
|
|
Net cash provided by/(used in)
financing activities
|
$
|
(1,910,033)
|
$
|
2,397,127
|
|
$
|
1,019,377
|
$
|
2,289,773
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Increase/(decrease) of Cash
and Cash Equivalents
|
|
(10,965,515)
|
|
1,898,425
|
|
|
(6,280,842)
|
|
(1,702,893)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Effect of foreign currency
translation on cash
|
|
|
|
|
|
|
|
|
|
|
|
and cash equivalents
|
|
1,967,781
|
|
(89,298)
|
|
|
3,155,754
|
|
(69,848)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents–beginning of period/year
|
|
18,603,272
|
|
8,529,664
|
|
|
12,730,626
|
|
12,111,532
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents–end of
period/year
|
$
|
9,605,538
|
$
|
10,338,791
|
|
$
|
9,605,538
|
$
|
10,338,791
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended June 30,
|
|
|
Six months
ended June 30,
|
|
|
|
2011
|
|
2010
|
|
|
2011
|
|
2010
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Supplementary cash flow
information:
|
|
|
|
|
|
|
|
|
|
|
|
Interest received
|
$
|
7,879
|
$
|
3,998
|
|
$
|
10,355
|
$
|
6,802
|
|
|
Interest paid
|
$
|
610,675
|
$
|
1,018,530
|
|
$
|
1,263,799
|
$
|
1,938,954
|
|
|
Income taxes paid
|
$
|
1,816,289
|
$
|
649,208
|
|
$
|
3,845,257
|
$
|
2,489,131
|
|
|
|
|
|
|
|
|
|
|
|
SOURCE American Lorain
Corporation