American Lorain Corporation Reports 2012 Second Quarter Financial Results

News provided by

American Lorain Corporation

Aug 14, 2012, 04:05 ET

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

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