omniture

American Lorain Corporation Reports 2011 Second Quarter Financial Results

2011-08-16 04:22 971

JUNAN COUNTY, China, August 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 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
Related Stocks:
AMEX:ALN
Keywords: Food/Beverages
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