American Lorain Corporation Reports 2012 Second Quarter Financial Results

JUNAN COUNTY, China, Aug. 14, 2012 /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, 2012.

Q2 2012 Operational Highlights

  • Strong sales in convenience and frozen food product lines with growth of 16.5% and 14.4%, respectively, over same period of last year
  • Convenience food segment continued to grow as a percent of total revenue
  • International sales accounted for 24.5%, as compared to 19.8% over same period of last year

Q2 2012 Financial Highlights

  • Total revenues of $40.8 million, an increase of 14.2% year over year
  • Net income attributable to common stockholders of $3.3 million, up 2.1% year-over-year
  • Diluted earnings per share of $0.10

2012 Second Quarter Financial Review

American Lorain Corporation

Selected Financial Statements in USD ($ in 000s)


3 months ended


3 months ended

% Increase /
Decrease


6/30/2012


6/30/2011








Sales



$40,816,760


$35,726,650

14.2%


Cost of Revenues


($32,316,135)


($28,070,066)

15.1%


Gross Profit


$8,500,625


$7,656,584

11.0%



Gross Profit Ratio


20.8%


21.4%



Income from operations


$5,625,735


$4,974,450

13.1%











Earnings before tax


$4,969,280


$4,747,488

4.7%











Net income attributable to common stockholders

$3,330,079


$3,262,451

2.1%











Diluted earnings per share


$0.10


$0.09

11.1%


Weighted average diluted shares outstanding

34,507,874


35,030,343

-1.5%

2012 Second Quarter Financial Review

  • The Company reported sales for the 2012 second quarter of $40.8 million, an increase of 14.2% compared to $35.7 million in the second quarter of 2011.
  • Gross profit increased 11.0% to $8.5 million from $7.7 million in the prior-year period.  Gross margin declined to 20.8% for the three months ended June 30, 2012, from 21.4% for the prior-year period. The decrease is primarily due to increased inflation pressure for raw materials as well as increased labor cost.
  • Income from operations during the period was $5.6 million, an increase of 13.1% from $5.0 million reported in the prior year period. 
  • The Company had net income attributable to common shareholders for the second quarter of 2012 of $3.3 million, or $0.10 per diluted share based on 34.5 million diluted shares outstanding, compared to $3.3 million, or $0.09 per diluted share based on 35.0 million diluted shares outstanding in the prior-year period. 

Balance Sheet Highlights and Financial Position

(in millions)


6/30/2012


6/30/2011

% Increase

Cash and Cash Equivalents

$

19.6

$

9.6

104.2%

Restricted Cash


14.9


7.1

109.9%

Working Capital


91.9


74.8

22.9%

Total Debt


51.2


43.2

18.5%

Stockholders' Equity


165.4


138.7

19.3%

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 JUNE 30, 2012 and 2011

(Stated in US Dollars)

 



Three months ended June 30,


Six months ended June 30,



2012


2011


2012


2011










Net revenues

$

40,816,760

$

35,726,650

$

77,957,791

$

66,176,455

Cost of revenues


-32,316,135


-28,070,066


-61,999,361


-51,744,961

Gross profit

$

8,500,625

$

7,656,584

$

15,958,430

$

14,431,494










Operating expenses









Selling and marketing expenses


-1,416,531


-1,088,768


-2,787,806


-2,451,454

General and administrative expenses


-1,458,359


-1,593,366


-2,760,513


-3,069,313



-2,874,890


-2,682,134


-5,548,319


-5,520,767










Operating income

$

5,625,735

$

4,974,450

$

10,410,111

$

8,910,727










Government subsidy income


219,193


302,260


854,356


595,353

Interest income


131,058


7,795


189,190


10,271

Other income


-


94,577


54,307


139,186

Other expenses


-341,290


-21,483


-17,662


-181,055

Interest expense


-665,416


-610,111


-1,574,884


-1,263,235



















Earnings before tax

$

4,969,280

$

4,747,488

$

9,915,418

$

8,211,247










Income tax


-1,406,931


-1,277,553


-2,594,141


-2,173,421










Net income

$

3,562,349

$

3,469,935

$

7,321,277

$

6,037,826










Other comprehensive income:









Foreign currency translation gain


487,845


1,875,108


407,382


3,107,991

Comprehensive Income


4,050,194


5,345,043


7,728,659


9,145,817

Net income attributable to:


















-Common stockholders

$

3,330,079

$

3,262,451

$

6,912,444

$

5,688,739

-Non-controlling interest


232,270


207,484


408,833


349,087


$

3,562,349

$

3,469,935

$

7,321,277

$

6,037,826



















Earnings per share









-        Basic

$

0.10

$

0.09

$

0.20

$

0.17

-        Diluted

$

0.10

$

0.09

$

0.20

$

0.16










Weighted average shares outstanding









-        Basic


34,507,874


34,427,582


34,507,874


34,427,582

-        Diluted


34,507,874


35,030,343


34,507,874


35,030,343


 

AMERICAN LORAIN CORPORATION

CONSOLIDATED BALANCE SHEETS

AT JUNE 30, 2012 AND DECEMBER 31, 2011

 





(Audited)



At June 30,


At December 31,

ASSETS


2012


2011

Current assets





Cash and cash equivalents

$

19,568,782

$

17,353,494

Restricted cash


14,888,602


13,017,371

Trade accounts receivable


33,445,492


41,469,880

Other receivables


5,847,682


6,147,550

Inventory


40,035,394


34,348,997

Advance to suppliers


12,621,820


15,772,736

Prepaid expenses and taxes


862,282


132,710

      Deferred tax asset


165,524


164,394

Security deposits and other Assets


16,485


16,373

Total current assets

$

127,452,063

$

128,423,505






   Non-current assets





Investment


475,519


472,270

Property, plant and equipment, net


83,334,810


84,377,306

Land use rights, net


5,379,070


5,425,252

TOTAL ASSETS

$

216,641,462

$

218,698,333






LIABILITIES AND STOCKHOLDERS' EQUITY





Current liabilities





Short-term bank loans

$

27,817,845

$

36,018,450

Long-term debt – current portion


57,459


57,066

Accounts payable


3,339,638


3,900,317

Taxes payable


2,931,872


4,237,142

Accrued liabilities and other payables


1,190,180


1,938,759

Customers deposits


189,129


-

Total current liabilities

$

35,526,123

$

46,151,734






Long-term liabilities





Long-term bank loans


15,705,131


15,597,831






TOTAL LIABILITIES

$

51,231,254

$

61,749,565

































At June 30,

 


(Audited)

At December 31,




2012


2011

STOCKHOLDERS' EQUITY





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


-


-

    shares authorized; 0 shares issued and outstanding at June
         30, 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 June 30, 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


72,852,157


65,939,713

Accumulated other comprehensive income


15,761,267


15,353,885

Non-controlling interests


9,036,960


8,628,127






TOTAL STOCKHOLDER'S EQUITY

$

165,410,208

$

156,948,768






TOTAL LIABILITIES AND





STOCKHOLDER'S EQUITY

$

216,641,462

$

218,698,333


 

AMERICAN LORAIN CORPORATION

CONSOLIDATED STATEMENTS OF CASH FLOW

FOR THE THREE MONTHS ENDED JUNE 30, 2012 AND 2011

(Stated in US Dollars)

 



Three months ended
June 30


Six months ended
June 30




2012


2011


2012


2011


Cash flows from operating activities










Net income

$

3,562,349

$

3,469,935

$

7,321,277

$

6,037,826


  Stock and share based compensation


-


131,671


51,607


305,373


  Depreciation of fixed assets


297,017


669,969


1,170,049


1,141,935


  Amortization of intangible assets


39,811


49,549


94,820


94,435


  Write down/(gain) of short-term investments


-


-92,673


-


-47,763


  Adjustment to statutory reserve


3,000


-


681,175




(Increase)/decrease in accounts & other receivables


3,794,787


-5,627,103


11,664,302


6,371,808


  (Increase)/decrease in inventories


-4,134,898


-2,366,929


-5,686,397


-11,290,660


Decrease/(increase) in prepayment


-597,661


-77,666


-729,572


-315,679


  Decrease/(increase) in deferred tax asset


-87


-1,411


-1,130


-2,388


Increase/(decrease) in accounts and other payables


-305,552


-1,583,873


-2,614,528


-3,974,205


   Net cash (used in)/provided by operating activities


2,658,766


-5,428,531


11,951,603


-1,679,318












Cash flows from investing activities










Proceeds from short-term investment


-


467,879


-


2,166,220


Purchase of plant and equipment


478,828


-1,567,871


-127,553


-2,347,391


Payment of construction in progress


-


-90,840


-


-471,105


Payment for the purchase of  land use rights


-1,309


-76,740


-48,638


-128,642


(Increase)/decrease in restricted cash


181,954


-2,205,347


-1,871,230


-4,755,229


Decrease (Increase) in deposit


-9


-154,032


-113


-84,754


Net cash used in investing activities


659,464


-3,626,951


-2,047,534


-5,620,901












Cash flows from financing activities










Repayment of bank borrowings


-3,838,330


-9,406,948


-8,448,382


-20,980,396


Proceeds from bank borrowings


106,480


6,733,544


355,469


18,183,012


Notes Payable


-


763,346


-


3,816,736


Issuance of common stock


-


25


-


25


Net cash provided by/(used in) financing activities

$

-3,731,850

$

-1,910,033

$

-8,092,913


1,019,377












Net Increase/(decrease) of Cash and Cash Equivalents


-413,620


-10,965,515


1,811,156


-6,280,842













Effect of foreign currency translation on cash  and cash equivalents


484,594


1,967,781


404,132


3,155,754












Cash and cash equivalents–beginning of period


19,497,808


18,603,272


17,353,494


12,730,626












Cash and cash equivalents–end of period

$

19,568,782

$

9,605,538


19,568,782


9,605,538












Supplementary cash flow information:










Interest received

$

131,058

$

7,879


189,190


10,355


Interest paid

$

672,577

$

610,675


1,832,091


1,263,799


Income taxes paid

$

1,183,839

$

1,816,289


3,787,928


3,845,257


SOURCE American Lorain Corporation



RELATED LINKS
http://www.americanlorain.com

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