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
Q2 2011 Financial Highlights
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% | ||||||
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 | |
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) | |||||||
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Operating income | $ | 4,974,450 | $ | 4,591,463 | $ | 8,910,727 | $ | 7,926,749 | ||
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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) | ||||||
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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) | ||||||
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Net income | $ | 3,469,935 | $ | 2,871,509 | $ | 6,037,826 | $ | 4,890,358 | ||
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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 | ||
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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 | ||
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Earnings per share | ||||||||||
- Basic | $ | 0.09 | $ | 0.10 | $ | 0.17 | $ | 0.17 | ||
- Diluted | $ | 0.09 | $ | 0.10 | $ | 0.16 | $ | 0.17 | ||
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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 | ||||||
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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 | |
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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 | |||
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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 | |||
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TOTAL STOCKHOLDER'S EQUITY | $ | 138,745,907 | $ | 129,342,457 | |
TOTAL LIABILITIES AND |
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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 | ||
