JUNAN COUNTY, China,
May 16, 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 first quarter ended March
31, 2011.
Q1 2011 Operational Highlights
- Each product segment increased by over 16% in sales
year-over-year
- Convenience food segment continued to grow as a percent of
total revenue
- Company's international sales continued to improve, increasing
49.2%
Q1 2011 Financial Highlights
- Total revenues of $30.4 million,
an increase of 24.0% year over year
- Gross margins decreased slightly to 22.2%, compared to 23.3%
year-over-year and 22.7% at 12/31/2010
- Net income attributable to common stockholders of $2.4 million, up 30.4% year-over-year
- Diluted earnings per share of $0.07
- Operating cash flow of $3.8
million for the period ended March
31, 2011
2011 Operations and Market Overview
Sales by categories of product consisted of the following as of
March 31, 2011 and 2010:
|
|
Category
|
|
3/31/2011
|
|
3/31/2010
|
%
Increase
|
|
Chestnut
|
$
|
15,050,594
|
$
|
12,960,561
|
16.1%
|
|
Convenience food
|
|
10,003,660
|
|
7,089,176
|
41.1%
|
|
Frozen food
|
|
5,395,552
|
|
4,510,479
|
19.6%
|
|
Total
|
$
|
30,449,805
|
$
|
24,560,216
|
23.9%
|
|
|
|
|
|
|
|
|
|
Categories of product as a percentage of sales as of
March 31, 2011 and 2010:
|
|
Category
|
3/31/2011 %
of Total Revenues
|
3/31/2010 % of Total
Revenues
|
%
Difference
|
|
Chestnut
|
49.4%
|
52.8%
|
(3.4%)
|
|
Convenience food
|
32.9%
|
28.9%
|
4.0%
|
|
Frozen food
|
17.7%
|
18.3%
|
(0.6%)
|
|
Total
|
100%
|
100%
|
|
|
|
|
|
|
|
|
American Lorain's Chairman and CEO, Mr. Si Chen, stated, "We are
extremely pleased with the performance of the Company in the first
quarter. We believe the largest contributor to our growth in
the coming months will be the continued expansion of our
convenience foods segment, as was the case in the first quarter.
We continue to focus on both diversifying our lines to
include a wider variety of food products and leveraging our known
brand name among different segments, as evidenced by our expansion
in the instant rice market."
"Although the first quarter is seasonally one of our weakest due
to the chestnut business, American Lorain's highly competitive cost
structure, coordinated sales and marketing platform, and continued
diverse food operations allowed us to deliver another solid
quarter. Over the past two years, American Lorain has made
significant improvements to the balance sheet and cash generation.
We reported $3.8 million in
operating cash flow during the period. We believe that the Company
is appropriately capitalized to grow organically in the coming
months."
2011 First Quarter Financial Review
American
Lorain Corporation
Selected
Financial Statements in USD ($ in 000s)
|
|
|
|
|
|
|
3 months
ended
|
|
3 months
ended
|
%
Increase
|
|
|
|
|
|
|
3/31/2011
|
|
3/31/2010
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales
|
|
|
|
$30,449,805
|
|
$24,560,216
|
24.0%
|
|
Cost of Revenues
|
|
|
($23,674,895)
|
|
($18,836,126)
|
25.7%
|
|
Gross Profit
|
|
|
$6,774,910
|
|
$5,724,090
|
18.4%
|
|
|
Gross Profit Ratio
|
|
|
22.2%
|
|
23.3%
|
|
|
Income from
operations
|
|
|
$3,936,277
|
|
$3,335,286
|
18.0%
|
|
|
|
|
|
|
|
|
|
|
|
Earnings before tax
|
|
|
$3,463,759
|
|
$2,690,841
|
28.7%
|
|
|
|
|
|
|
|
|
|
|
|
Net income attributable to
common stockholders
|
$2,426,288
|
|
$1,860,531
|
30.4%
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per
share
|
|
|
$0.07
|
|
$0.07
|
0.0%
|
|
Weighted average diluted shares
outstanding
|
35,155,958
|
|
26,730,651
|
31.5%
|
|
|
|
|
|
|
|
|
|
|
|
|
- The Company reported sales for the 2011 first quarter of
$30.4 million, an increase of 24.0%
compared to $24.6 million in the
first quarter of 2010.
- Gross profit increased 18.4% to $6.8
million from $5.7 million in
the prior-year period. Gross margin declined slightly to
22.2% for the three months ended March 31,
2011, from 23.3% for the prior-year period. The decrease is
primarily due to a higher percentage of sales from the American
Lorain's convenience foods, which typically sell at a slightly
lower margin than the Company's chestnut business. 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 $3.9 million, an increase of 18.0% from
$3.3 million reported in the prior
year period. Operating margin for the 2011 first quarter was
12.9% compared with 13.6% in the prior year.
- The Company had net income attributable to common shareholders
for the fourth quarter of 2010 of $2.4
million, or $0.07 per diluted
share based on 35.2 million diluted shares outstanding, compared to
$1.9 million, or $0.07 per diluted share based on 26.7 million
diluted shares outstanding in the prior-year period. The
Company's net margin for the period improved to 8.0% from 7.5% in
the prior year period, largely because of lower interest
expenses.
Balance Sheet Highlights and Financial
Position
|
|
(in millions)
|
|
3/31/2011
|
|
12/31/2010
|
%
Increase
|
|
Cash and Cash
Equivalents
|
$
|
18.6
|
$
|
12.7
|
46.5%
|
|
Restricted Cash
|
|
4.9
|
|
2.3
|
113.0%
|
|
Working Capital
|
|
70.8
|
|
57.4
|
23.4%
|
|
Total Liabilities
|
|
47.3
|
|
45.6
|
3.6%
|
|
Stockholders' Equity
|
|
133.4
|
|
129.3
|
3.2%
|
|
|
|
|
|
|
|
|
|
The Company had a book value per share at March 31, 2011 of $3.87.
Outlook for 2011
Mr. Chen concluded, "Chestnut sales (both domestically and
internationally) have remained strong throughout the first four
months of the year when compared to last. While it is always
a challenge to precisely assess customer demand for our products,
we are optimistic about fiscal 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. We are in a very basic business, supplying
easy, ready-to-eat food to individuals across the globe. In tough
economic times, people tend to cook at home by shopping at their
local grocer. This is our core business and, along with our
international presence, we should be better positioned than many of
our local competitors in this regard. We are optimistic about
the outlook of our market growth in China and 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 (May 17, 2011) at 9:00 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=164281. The
Company will also have an accompanying slide presentation available
in PDF format on its website prior to the conference call.
Phone Replay Information
A recorded replay of the call will be available until
11:59 p.m. ET on May 23, 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 #: 371500
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.
AMERICAN
LORAIN CORPORATION
CONSOLIDATED
STATEMENTS OF INCOME
FOR THE
THREE MONTHS ENDED MARCH 31, 2011 and 2010
(Stated in
US Dollars)
|
|
|
|
|
March
31,
|
|
March
31,
|
|
|
|
|
2011
|
|
2010
|
|
|
|
|
|
|
|
|
Net revenues
|
|
$
|
30,449,805
|
$
|
24,560,216
|
|
Cost of revenues
|
|
|
(23,674,895)
|
|
(18,836,126)
|
|
Gross profit
|
|
$
|
6,774,910
|
$
|
5,724,090
|
|
|
|
|
|
|
|
|
Operating expenses
|
|
|
|
|
|
|
Selling and marketing
expenses
|
|
|
(1,362,686)
|
|
(1,372,352)
|
|
General and administrative
expenses
|
|
|
(1,475,947)
|
|
(1,016,452)
|
|
|
|
|
(2,838,633)
|
|
(2,388,804)
|
|
|
|
|
|
|
|
|
Operating income
|
|
$
|
3,936,277
|
$
|
3,335,286
|
|
|
|
|
|
|
|
|
Government subsidy
income
|
|
|
293,093
|
|
181,421
|
|
Interest income
|
|
|
2,475
|
|
2,804
|
|
Other income
|
|
|
44,609
|
|
119,277
|
|
Other expenses
|
|
|
(159,572)
|
|
(27,523)
|
|
Interest expense
|
|
|
(653,123)
|
|
(920,424)
|
|
|
|
|
(472,518)
|
|
(644,445)
|
|
|
|
|
|
|
|
|
Earnings before tax
|
|
$
|
3,463,759
|
$
|
2,690,841
|
|
|
|
|
|
|
|
|
Income tax
|
|
|
(895,868)
|
|
(671,992)
|
|
|
|
|
|
|
|
|
Net income
|
|
$
|
2,567,891
|
$
|
2,018,849
|
|
Net income attributable
to:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
-Common stockholders
|
|
$
|
2,426,288
|
$
|
1,860,531
|
|
-Non-controlling
interest
|
|
|
141,603
|
|
158,318
|
|
|
|
$
|
2,567,891
|
$
|
2,018,849
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share
|
|
|
|
|
|
|
- Basic
|
|
$
|
0.07
|
$
|
0.07
|
|
- Diluted
|
|
$
|
0.07
|
$
|
0.07
|
|
|
|
|
|
|
|
|
Weighted average shares
outstanding
|
|
|
|
|
|
|
- Basic
|
|
|
34,419,709
|
|
26,075,413
|
|
- Diluted
|
|
|
35,155,958
|
|
26,730,651
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AMERICAN
LORAIN CORPORATION
CONSOLIDATED
BALANCE SHEETS
AT MARCH 31,
2011 AND DECEMBER 31, 2010
|
|
|
|
|
|
(Audited)
|
|
|
|
At March
31,
|
|
At December
31,
|
|
ASSETS
|
|
2011
|
|
2010
|
|
Current
assets
|
|
|
|
|
|
Cash and cash
equivalents
|
$
|
18,603,272
|
$
|
12,730,626
|
|
Restricted cash
|
|
4,858,780
|
|
2,308,898
|
|
Short term
investment
|
|
7,794,153
|
|
9,447,585
|
|
Trade accounts receivable
|
|
21,835,538
|
|
33,226,612
|
|
Other receivables
|
|
1,976,234
|
|
1,492,850
|
|
Inventories
|
|
38,730,930
|
|
29,807,198
|
|
Advance to
suppliers
|
|
7,467,094
|
|
7,744,976
|
|
Prepaid expenses and
taxes
|
|
949,956
|
|
434,061
|
|
Deferred tax
asset
|
|
104,689
|
|
103,713
|
|
Security deposits and
other Assets
|
|
628,998
|
|
693,858
|
|
Total current assets
|
$
|
102,949,644
|
$
|
97,990,377
|
|
|
|
|
|
|
|
Non-current
assets
|
|
|
|
|
|
Property,
plant
and equipment, net
|
|
72,782,827
|
|
72,095,007
|
|
Land use
rights, net
|
|
4,884,453
|
|
4,877,438
|
|
Deposit
|
|
15,878
|
|
20,297
|
|
TOTAL ASSETS
|
$
|
180,632,802
|
$
|
174,983,119
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS'
EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
Short-term
bank
loans
|
$
|
16,139,139
|
$
|
25,164,469
|
|
Long-term debt – current
portion
|
|
220,998
|
|
218,935
|
|
Notes payable
|
|
6,106,777
|
|
4,249,977
|
|
Accounts
payable
|
|
5,468,206
|
|
6,284,532
|
|
Taxes payables
|
|
1,248,383
|
|
3,266,502
|
|
Accrued liabilities
and other
payables
|
|
1,780,060
|
|
1,335,947
|
|
Customers
deposits
|
|
1,180,590
|
|
89,370
|
|
Total current liabilities
|
$
|
32,144,154
|
$
|
40,609,732
|
|
|
|
|
|
|
|
Long-term
liabilities
|
|
|
|
|
|
Long-term
debt
|
|
15,126,807
|
|
5,030,930
|
|
|
|
|
|
|
|
TOTAL LIABILITIES
|
$
|
47,270,960
|
$
|
45,640,662
|
|
|
|
|
|
|
|
STOCKHOLDERS'
EQUITY
|
|
|
|
|
|
Preferred Stock, $.001 par
value, 5,000,000 shares
authorized; 0 shares issued and
outstanding at March 31, 2011
and December 31, 2010,
respectively
|
|
-
|
|
-
|
|
Common stock, $0.001 par
value, 200,000,000 shares
authorized; 34,419,709 and
34,419,709 shares issued and
outstanding as of March 31, 2011
and December 31, 2010,
respectively
|
|
34,420
|
|
34,420
|
|
Additional paid-in
capital
|
|
52,545,183
|
|
52,371,481
|
|
Statutory
reserves
|
|
12,060,229
|
|
11,340,739
|
|
Retained
earnings
|
|
50,395,173
|
|
48,688,375
|
|
Accumulated
other
comprehensive income
|
|
10,753,537
|
|
9,475,745
|
|
Non-controlling
interests
|
|
7,573,300
|
|
7,431,697
|
|
|
|
|
|
|
|
TOTAL STOCKHOLDER'S
EQUITY
|
$
|
133,361,842
|
$
|
129,342,457
|
|
TOTAL LIABILITIES
AND
|
|
|
|
|
|
STOCKHOLDER'S
EQUITY
|
$
|
180,632,802
|
$
|
174,983,119
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AMERICAN
LORAIN CORPORATION
CONSOLIDATED
STATEMENTS OF CASH FLOW
FOR THE
THREE MONTHS ENDED MARCH 31, 2011 AND 2010
(Stated in
US Dollars)
|
|
|
|
March
31,
|
|
March
31,
|
|
|
|
2011
|
|
2010
|
|
Cash flows
from operating activities
|
|
|
|
|
|
Net income
|
$
|
2,567,891
|
$
|
2,018,849
|
|
Stock and share based
compensation
|
|
173,702
|
|
249,006
|
|
Depreciation of fixed
assets
|
|
483,601
|
|
365,569
|
|
Amortization of intangible
assets
|
|
44,886
|
|
35,720
|
|
Write down of short-term
investments
|
|
44,909
|
|
-
|
|
(Increase)/decrease
in accounts
& other receivables
|
|
11,998,911
|
|
4,089,021
|
|
(Increase)/decrease in
inventories
|
|
(8,923,732)
|
|
(9,473,698)
|
|
Decrease/(increase) in
advance to suppliers and prepayment
|
|
(238,013)
|
|
(238,115)
|
|
Decrease/(increase) in
deferred tax asset
|
|
(977)
|
|
-
|
|
Increase/(decrease)
in accounts, tax
and other payables
|
|
(2,390,331)
|
|
(301,956)
|
|
Net cash
(used in)/provided
by operating
activities
|
|
3,760,847
|
|
(3,255,604)
|
|
|
|
|
|
|
|
Cash flows
from investing activities
|
|
|
|
|
|
Purchase of
plant and equipment
|
|
(791,155)
|
|
(427,535)
|
|
Payment of construction in
progress
|
|
(380,266)
|
|
-
|
|
Proceeds from short-term
investments
|
|
1,698,341
|
|
22,227
|
|
(Increase)/decrease in
restricted cash
|
|
(2,549,882)
|
|
181,835
|
|
Payments for the purchase
of land use rights
|
|
(51,902)
|
|
(14,887)
|
|
Payments for security
deposits
|
|
69,279
|
|
-
|
|
Net cash
used
in investing activities
|
|
(2,005,585)
|
|
(238,360)
|
|
|
|
|
|
|
|
Cash flows
from financing activities
|
|
|
|
|
|
Repayment of
notes
|
|
(1,196,589)
|
|
-
|
|
Proceeds from issuance of
notes
|
|
3,053,390
|
|
-
|
|
Proceeds from bank
borrowings
|
|
11,449,469
|
|
17,853,746
|
|
Repayment of bank
borrowings
|
|
(10,376,859)
|
|
(17,961,100)
|
|
Net cash provided
by/(used in) financing activities
|
$
|
2,929,411
|
$
|
(107,354)
|
|
|
|
|
|
|
|
Net Increase/(decrease) of Cash
and Cash Equivalents
|
|
4,684,673
|
|
(3,601,318)
|
|
|
|
|
|
|
|
Effect of foreign currency translation
on cash
and cash
equivalents
|
|
1,187,973
|
|
19,450
|
|
|
|
|
|
|
|
Cash and cash
equivalents–beginning
of year
|
|
12,730,626
|
|
12,111,532
|
|
|
|
|
|
|
|
Cash
and cash
equivalents–end of
year
|
$
|
18,603,272
|
$
|
8,529,664
|
|
|
|
|
|
|
|
Supplementary cash flow
information:
|
|
|
|
|
|
Interest
received
|
$
|
2,475
|
$
|
2,804
|
|
Interest paid
|
$
|
653,123
|
$
|
909,715
|
|
Income taxes
paid
|
$
|
2,028,968
|
$
|
1,839,950
|
|
|
|
|
|
|
|
|
CONTACT: Mr. David She, CFO, American Lorain Corporation, +86-10-8411-3393,
david.she@americanlorain.com; Investor Relations: Katherine Yao, Account Executive, The Equity
Group Inc., +86-10-6587-6435, kyao@equityny.com, or Adam Prior, Vice President, +1-212-836-9606,
aprior@equityny.com
SOURCE American Lorain
Corporation