American Lorain Corporation Reports 2012 Third Quarter Financial Results

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
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