American Lorain Corporation Reports 2012 Third Quarter Financial Results

14 Nov, 2012, 17:00 ET from American Lorain Corporation

JUNAN COUNTY, China, Nov. 14, 2012 /PRNewswire-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 third quarter ended September 30, 2012.

Q3 2012 Operational Highlights

  • Strong sales in chestnut products with growth of 10.3%  over same period of last year
  • Convenience food grew 3.9% over same period of last year
  • International sales accounted for 27.7%, as compared to 24.2% over same period of last year

Q3 2012 Financial Highlights

  • Total revenues of $58.0 million, an increase of 4.2% year over year
  • Net income attributable to common stockholders of $5.3 million, down 25.7% year-over-year, mostly due to the one-time gain we recognized in the third quarter of 2011 when we sold a parcel of land previously carried on our balance sheet as a short term investment
  • Diluted earnings per share of $0.15

2012 Third Quarter Financial Review

American Lorain Corporation

Selected Financial Statements in USD ($ in 000s)

3 months ended

3 months ended

% Increase / Decrease

9/30/2012

9/30/2011

Sales

$57,972,627

$55,642,041

4.2%

Cost of Revenues

($45,583,295)

($43,291,417)

5.3%

Gross Profit

$12,389,332

$12,350,624

0.3%

Gross Profit Ratio

21.4%

22.2%

Income from operations

$8,451,374

$8,200,913

3.1%

Earnings before tax

$7,645,304

$9,779,476

-21.8%

Net income attributable to common stockholders

$5,252,569

$7,071,288

-25.7%

Diluted earnings per share

$0.15

$0.20

-25.0%

Weighted average diluted shares outstanding

34,507,874

34,605,668

-0.3%

 

2012 Third Quarter Financial Review

  • The Company reported sales for the 2012 third quarter of $58.0 million, an increase of 4.2% compared to $55.6million in the third quarter of 2011.
  • Gross profit increased 0.3% to $12.39 million from $12.35 million in the prior-year period.  Gross margin declined to 21.4% for the three months ended September 30, 2012, from 22.2% 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 $8.5 million, an increase of 3.1% from $8.2 million reported in the prior year period.  Operating margin for the 2012 third quarter remained flat at 14.6% compared to 14.7% in the prior-year period.
  • The Company had net income attributable to common shareholders for the third quarter of 2012 of $5.3million, or $0.15 per diluted share based on 34.5 million diluted shares outstanding, compared to $7.1 million, or $0.20 per diluted share based on 34.6 million diluted shares outstanding in the prior-year period. The decrease is mostly due to the one-time gain we recognized in the third quarter of 2011 when we sold a parcel of land previously carried on our balance sheet as a short term investment.

Balance Sheet Highlights and Financial Position

(in millions)

9/30/2012

9/30/2011

% Increase

Cash and Cash Equivalents

$

16.7

$

11.4

46.5%

Restricted Cash

14.1

8.9

58.4%

Working Capital

98.6

83.7

17.8%

Total Debt

76.8

40.5

89.6%

Stockholders' Equity

171.0

148.4

15.2%

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:

At the Company:

American Lorain Corporation Mr. David She, CFO +86-10 8411 3393 david.she@americanlorain.com Web:   http://www.americanlorain.com

 

AMERICAN LORAIN CORPORATION

CONSOLIDATED STATEMENTS OF INCOME

FOR THE THREE AND NINE MONTHS ENDED SEPTEMPER 30, 2012 and 2011

(Stated in US Dollars)

Three months ended

September 30,

Nine months ended

September 30,

2012

2011

2012

2011

Net revenues

$

57,972,627

$

55,642,041

$

135,930,419

$

121,818,496

Cost of revenues

-45,583,295

-43,291,417

-107,582,656

-95,036,378

Gross profit

$

12,389,332

$

12,350,624

$

28,347,763

$

26,782,118

Operating expenses

Selling and marketing expenses

-2,310,863

-2,538,469

-5,098,669

-4,989,922

General and administrative expenses

-1,627,095

-1,611,242

-4,387,609

-4,680,555

-3,937,958

-4,149,711

-9,486,278

-9,670,477

Operating income

$

8,451,374

$

8,200,913

$

18,861,485

$

17,111,641

Government subsidy income

281,374

47,657

1,135,730

643,009

Interest income

2,886

26,257

192,076

36,526

Other income

44,472

2,109,575

98,779

2,248,762

Other expenses

-6,434

-54,269

-24,098

-235,324

Interest expense

-1,128,368

-550,657

-2,703,251

-1,813,891

Earnings before tax

$

7,645,304

$

9,779,476

$

17,560,721

$

17,990,723

Income tax

-2,037,590

-1,887,950

-4,631,730

-4,061,371

Net income

$

5,607,714

$

7,891,526

$

12,928,991

$

13,929,352

Other comprehensive income:

Foreign currency translation gain

-317,396

1,664,668

89,984

4,772,659

Comprehensive Income

5,290,318

9,556,194

13,018,975

18,702,011

Net income attributable to:

-Common stockholders

$

5,252,569

$

7,071,288

$

12,165,013

$

12,760,027

-Non-controlling interest

355,145

820,238

763,978

1,169,325

$

5,607,714

$

7,891,526

$

12,928,991

$

13,929,352

Earnings per share

-        Basic

$

0.15

$

0.21

$

0.35

$

0.37

-        Diluted

$

0.15

$

0.20

$

0.35

$

0.37

Weighted average shares outstanding

-        Basic

34,507,874

34,466,144

34,507,874

34,440,483

-        Diluted

34,507,874

34,605,668

34,507,874

34,754,552

 

AMERICAN LORAIN CORPORATION

CONSOLIDATED BALANCE SHEETS

AT SEPTEMPER 30, 2012 AND DECEMBER 31, 2011

(Audited)

At September 30,

At December 31,

ASSETS

2012

2011

Current assets

Cash and cash equivalents

$

16,731,380

$

17,353,494

Restricted cash

14,141,625

13,017,371

Trade accounts receivable

52,667,221

41,469,880

Other receivables

6,243,500

6,147,550

Inventory

51,949,507

34,348,997

Advance to suppliers

12,620,123

15,772,736

Prepaid expenses and taxes

2,315,491

132,710

      Deferred tax asset

165,260

164,394

Security deposits and other Assets

18,040

16,373

Total current assets

$

156,852,149

$

128,423,505

   Non-current assets

Investment

474,758

472,270

Property, plant and equipment, net

85,195,024

84,377,306

Land use rights, net

5,330,865

5,425,252

TOTAL ASSETS

$

247,852,796

$

218,698,333

LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities

Short-term bank loans

$

49,468,885

$

36,018,450

Long-term debt – current portion

57,367

57,066

Accounts payable

3,363,447

3,900,317

Taxes payable

3,738,859

4,237,142

Accrued liabilities and other payables

1,410,070

1,938,759

Customers deposits

229,045

-

Total current liabilities

$

58,267,673

$

46,151,734

Long-term liabilities

Long-term bank loans

18,555,701

15,597,831

TOTAL LIABILITIES

$

76,823,374

$

61,749,565

(Audited)

At September 30,

 

At December 31,

2012

2011

STOCKHOLDERS' EQUITY

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

-

-

    shares authorized; 0 shares issued and outstanding at September 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 September 30, 2012 and December 31, 2011, respectively

34,508

34,508

Additional paid-in capital

53,396,140

53,015,636

Statutory reserves

14,658,074

13,976,899

Retained earnings

78,104,726

65,939,713

Accumulated other comprehensive income

15,443,869

15,353,885

Non-controlling interests

9,392,105

8,628,127

TOTAL STOCKHOLDER'S EQUITY

$

171,029,422

$

156,948,768

TOTAL LIABILITIES AND

STOCKHOLDER'S EQUITY

$

247,852,796

$

218,698,333

 

AMERICAN LORAIN CORPORATION

CONSOLIDATED STATEMENTS OF CASH FLOW

FOR THE THREE AND NINE MONTHS ENDED SEPTEMPER  30, 2012 AND 2011

(Stated in US Dollars)

Three months ended

Nine months ended

September 30,

September 30,

2012

2011

2012

2011

Cash flows from operating activities

Net income

$

5,607,714

$

7,891,526

$

12,928,991

$

13,929,352

  Stock and share based compensation

328,897

146,806

380,504

452,179

  Depreciation of fixed assets

847,189

333,588

2,017,237

1,475,523

  Amortization of intangible assets

32,464

41,854

127,284

141,997

  Write down/(gain) of short-term investments

-30,702

-

-78,465

Adjustment to statutory reserve

-

-

681,175

-

(Increase)/decrease in accounts & other receivables

-19,575,936

-13,203,625

-7,911,633

-6,831,817

  (Increase)/decrease in inventories

-11,914,113

6,268,000

-17,600,510

-5,022,660

Decrease/(increase) in prepayment

-1,453,208

-2,650,221

-2,182,781

-2,965,900

  Decrease/(increase) in deferred tax asset

265

-1,237

-866

-3,625

Increase/(decrease) in accounts and other payables

1,050,685

2,359,115

-1,563,843

-1,615,090

   Net cash (used in)/provided by operating activities

-25,076,044

1,155,104

-13,124,442

-518,506

Cash flows from investing activities

Sale/(Proceeds) from short-term  investment

-

-807,647

-

1,358,573

Purchase of plant and equipment

-2,707,402

-874,224

-2,834,954

-3,221,615

Payment of construction  in progress

-

-507,155

-

-978,260

Payment for the purchase of  land use rights

15,741

-60,047

-32,897

-194,397

(Increase)/decrease in restricted cash

746,976

-1,816,892

-1,124,254

-6,572,121

Decrease (Increase) in deposit

-1,556

136,099

-1,668

51,345

Sales/(purchase) of land investment

-

7,502,344

-

7,502,344

Net cash used in investing activities

-1,946,241

3,572,478

-3,993,774

-2,054,131

Cash flows from financing activities

Repayment of bank borrowings

-

-5,278,540

-7,405,267

-22,060,396

Proceeds from bank borrowings

19,753,932

3,853,879

19,066,286

22,036,891

Proceeds from long-term bank borrowings

4,747,587

4,747,587

Repayment of Notes

-

-3,085,517

-

-4,249,977

Proceeds from  issuance of notes

-

-

-

782,656

Issuance of common stock

-

27

-

52

Net cash provided by/(used in) financing activities

$

24,501,519

$

-4,510,151

$

16,408,606

-3,490,774

Net Increase/(decrease) of Cash and Cash Equivalents

-2,520,766

217,431

-709,610

-6,063,411

Effect of foreign currency translation on cash  and cash equivalents

-316,636

1,616,904

87,496

4,772,659

Cash and cash equivalents–beginning of period

19,568,782

9,605,539

17,353,494

12,730,626

Cash and cash equivalents–end of period

$

16,731,380

$

11,439,874

16,731,380

11,439,874

Supplementary cash flow information:

Interest received

$

2,886

$

26,171

$

192,076

$

36,526

Interest paid

$

919,218

$

502,519

$

2,751,309

$

1,766,318

Income taxes paid

$

1,348,553

$

1,116,795

$

5,136,481

$

4,962,052

SOURCE American Lorain Corporation



RELATED LINKS

http://www.americanlorain.com