American Lorain Corporation Reports 2012 First Quarter Financial Results

2012-05-15

JUNAN COUNTY, ChinaMay 15, 2012 /PRNewswire-Asia-FirstCall/ — American Lorain Corporation(NYSEAmex: ALN) (“American Lorain” or the “Company”), an international processed snack foods, convenience foods, and frozen foods company based in the Shandong ProvinceChina, today announced financial results for its first quarter ended March 31, 2012.

Q1 2012 Operational Highlights

  • Strong sales in convenience and frozen food product lines with growth of 28.4% and 53.7%, respectively, over same period of last year
  • Convenience food segment continued to grow as a percent of total revenue
  • Domestic sales accounted for 78.9%, as compared to 74.5% over same period of last year

Q1 2012 Financial Highlights

  • Total revenues of $37.1 million, an increase of 22.0% year over year
  • Net income attributable to common stockholders of $3.6 million, up 47.6% year-over-year
  • Diluted earnings per share of $0.10

2012 First Quarter Financial Review

American Lorain Corporation

Selected Financial Statements in USD ($ in 000s)

3 months ended

3 months ended

% Increase / Decrease

3/31/2012

3/31/2011

Sales

$37,141,031

$30,449,805

21.97%

Cost of Revenues

($29,683,226)

($23,674,895)

25.38%

Gross Profit

$7,457,805

$6,774,910

10.08%

Gross Profit Ratio

20.08%

22.20%

Income from operations

$4,784,376

$3,936,277

21.55%

Earnings before tax

$4,946,137

$3,463,759

42.80%

Net income attributable to common stockholders

$3,582,365

$2,426,288

47.65%

Diluted earnings per share

$0.10

$0.07

48.30%

Weighted average diluted shares outstanding

34,507,874

35,155,958

-1.84%

  • The Company reported sales for the 2012 first quarter of $37.1 million, an increase of 22.0% compared to $30.4 million in the first quarter of 2011.
  • Gross profit increased 10.1% to $7.5 million from $6.8 million in the prior-year period.  Gross margin declined to 20.1% for the three months ended March 31, 2012, from 22.2% for the prior-year period. The decrease is primarily due to increase inflation pressure for raw materials as well as increase labor cost.
  • Income from operations during the period was $4.8 million, an increase of 21.5% from $3.9 million reported in the prior year period.  Operating margin for the 2011 first quarter remained the same at 12.9% compared with prior year.
  • The Company had net income attributable to common shareholders for the first quarter of 2012 of $3.6 million, or $0.10 per diluted share based on 34.5 million diluted shares outstanding, compared to $2.4 million, or $0.07 per diluted share based on 35.2 million diluted shares outstanding in the prior-year period. 

Balance Sheet Highlights and Financial Position

(in millions)

3/31/2012

3/31/2011

% Increase

Cash and Cash Equivalents

$

19.5

$

18.6

4.84%

Restricted Cash

15.1

4.9

208.16%

Working Capital

87.1

70.8

23.02%

Total Debt

55.8

47.3

17.97%

Stockholders' Equity

161.4

133.4

20.99%

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, 2012 and 2011

(Stated in US Dollars)

March 31,

March 31,

2012

2011

Net revenues

$

37,141,031

$

30,449,805

Cost of revenues

(29,683,226)

(23,674,895)

Gross profit

$

7,457,805

$

6,774,910

Operating expenses

Selling and marketing expenses

(1,371,275)

(1,362,686)

General and administrative expenses

(1,302,154)

(1,475,947)

(2,673,429)

(2,838,633)

Operating income

$

4,784,377

$

3,936,277

Government subsidy income

635,163

293,093

Interest income

58,132

2,475

Other income

396,668

44,609

Other expenses

(18,734)

(159,572)

Interest expense

(909,468)

(653,123)

161,761

(472,518)

Earnings before tax

$

4,946,137

$

3,463,759

Income tax

(1,187,209)

(895,868)

Net income

$

3,758,928

$

2,567,891

Other comprehensive income:

Foreign currency translation gain

(80,463)

1,232,883

Comprehensive Income

3,678,465

3,800,774

Net income attributable to:

-Common stockholders

$

3,582,365

$

2,426,288

-Non-controlling interest

176,563

141,603

$

3,758,928

$

2,567,891

Earnings per share

–       Basic

$

0.10

$

0.07

–       Diluted

$

0.10

$

0.07

Weighted average shares outstanding

–       Basic

34,507,874

34,419,709

–       Diluted

34,507,874

35,155,958



 

AMERICAN LORAIN corporation

CONSOLIDATED BALANCE SHEETS

AT MARCH 31, 2012 AND DECEMBER 31, 2011

(Audited)

At March 31,

At December 31,

ASSETS

2012

2011

   Current assets

Cash and cash equivalents

$

19,497,808

$

17,353,494

Restricted cash

15,070,555

13,017,371

Trade accounts receivable

32,102,641

41,469,880

Other receivables

6,514,104

6,147,550

Inventory

35,900,495

34,348,997

Advance to suppliers

17,632,219

15,772,736

Prepaid expenses and taxes

264,620

132,710

      Deferred tax asset

165,438

164,394

      Security deposits and other Assets

16,477

16,373

Total current assets

$

127,164,357

$

128,423,505

   Non-current assets

Investment

475,270

472,270

Property, plant and equipment, net

84,110,655

84,377,306

Land use rights, net

5,417,572

5,425,252

TOTAL ASSETS

$

217,167,854

$

218,698,333

LIABILITIES AND STOCKHOLDERS' EQUITY

Short-term bank loans

$

31,557,935

$

36,018,450

Long-term debt – current portion

57,428

57,066

Accounts payable

3,996,907

3,900,317

Taxes payable

2,656,413

4,237,142

Accrued liabilities and other payables

1,113,921

1,938,759

Customers deposits

728,314

Total current liabilities

$

40,110,918

$

46,151,734

Long-term liabilities

Long-term bank loans

15,696,920

15,597,831

TOTAL LIABILITIES

$

55,807,838

$

61,749,565

STOCKHOLDERS' EQUITY

Preferred Stock, $.001 par value, 5,000,000

    shares authorized; 0 shares issued and outstanding at 

March 31, 2012 and December 31, 2011, respectively

Common stock, $0.001 par value, 200,000,000 shares authorized; 

34,507,874 shares issued and outstanding as of March 31, 2012 and 

December 31, 2011, respectively

34,508

34,508

Additional paid-in capital

53,067,243

53,015,636

Statutory reserves

14,658,073

13,976,899

Retained earnings

69,522,079

65,939,713

Accumulated other comprehensive income

15,273,423

15,353,885

Non-controlling interests

8,804,690

8,628,127

TOTAL STOCKHOLDER'S EQUITY

$

161,360,016

$

156,948,768

TOTAL LIABILITIES AND

STOCKHOLDER'S EQUITY

$

217,167,854

$

218,698,333

AMERICAN LORAIN corporation

CONSOLIDATED STATEMENTS OF CASH FLOW

FOR THE THREE MONTHS ENDED MARCH 31, 2012 AND 2011

(Stated in US Dollars)

March 31,

March 31,

2012

2011

Cash flows from operating activities

Net income

$

3,758,928

$

2,567,891

   Stock and share based compensation

51,607

173,702

   Depreciation of fixed assets

873,032

483,601

   Amortization of intangible assets

55,010

44,886

   Write down of short-term investments

44,909

   Adjustment to statutory reserve

678,175

   (Increase)/decrease in accounts & other receivables

7,869,515

11,998,911

   (Increase)/decrease in inventories

(1,551,498)

(8,923,732)

 Decrease/(increase) in prepayment

(131,910)

(238,013)

   Decrease/(increase) in deferred tax asset

(1,044)

(977)

   Increase/(decrease) in accounts and other payables

(2,308,977)

(2,390,331)

   Net cash (used in)/provided by operating activities

9,292,838

3,760,847

Cash flows from investing activities

Shandong Greenpia acquisition net of cash acquired

Purchase of plant and equipment

(606,381)

(791,155)

Payment of construction in progress

(380,266)

(Increase)/decrease in restricted cash

(2,053,184)

(2,549,882)

Payments for the purchase of land use rights

(47,329)

(51,902)

Payments for security deposits

(104)

69,279

Proceeds from sale of short-term investments

1,698,341

Net cash used in investing activities

(2,706,998)

(2,005,585)

Cash flows from financing activities

Repayment of notes

(1,196,589)

Proceeds from issuance of notes

3,053,390

Proceeds from bank borrowings

4,193,799

11,449,469

Repayment of bank borrowings

(8,554,862)

(10,376,859)

Net cash provided by/(used in) financing activities

$

(4,361,063)

$

2,929,411

Net Increase/(decrease) of Cash and Cash Equivalents

2,224,777

4,684,673

Effect of foreign currency translation on cash

and cash equivalents

(80,463)

1,187,973

Cash and cash equivalents–beginning of year

17,353,494

12,730,626

Cash and cash equivalents–end of year

$

19,497,808

$

18,603,272

Supplementary cash flow information:

Interest received

$

58,132

$

2,475

Interest paid

$

1,159,514

$

653,123

Income taxes paid

$

2,604,089

$

2,028,968

SOURCE American Lorain Corporation