Company to Hold Conference Call Tuesday, May 17, 2011, at 9:00 a.m. ET - Accompanying Slide Presentation at www.americanlorain.com
JUNAN COUNTY, China, May 17, 2011 /PRNewswire-Asia/ -- 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
Q1 2011 Financial Highlights
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% |
||||||
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 AmericanLorain 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 |
- |
- |
|||
Common stock, $0.001 par value, 200,000,000 shares |
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 |
|