American Lorain Corporation Reports Third Quarter Fiscal Year 2015 Financial Results
- Q3 Operating income increased by 47.86% YOY;
- Q3 Net income increased by 157.24% YOY;
- Total sales reached $120.79 million for the first nine months of FY 2015
LINYI, China, Nov. 20, 2015 /PRNewswire/ -- American Lorain Corporation (NYSE MKT: ALN) (the "Company" or "American Lorain"), an international processed snack foods, convenience foods, and frozen foods company based in Shandong Province, China, today announced financial results for the third quarter ended September 30, 2015.
Third Quarter FY 2015 Highlights vs. the Comparable Period of 2014
Revenue decreased by $7.58 million to $47.68 million for the third quarter FY 2015 compared to the prior year period;
Gross profit of $8.29 million for the third quarter FY 2015 as compared to $9.16 million of the same period in 2014;
Gross margin of 17.39% for the third quarter of FY 2015 as compared to 16.57% in comparison to the same period in 2014;
Operating income of $4.07 million an increase of 47.86% in comparison to $2.75 million of the same period in 2014;
Net income of $1.88 million or $0.06 per fully diluted share, compared with net income of $0.73 million or $0.03 per fully diluted share of the same period in 2014;
Management Comments
"We were so glad to see both our operating income and net income increased by 48% YOY and 157% YOY, respectively. During the third quarter, the Company made tremendous progresses for our newly launched Youtiao product. And the Company was also actively moving forward with new products for China breakfast market along with the other business segment. Our offices all around the country were working very closely with local dealers to promote all kinds of the product," Said Mr. Chen Si, Chairman and CEO of American Lorain Corporation, "The Company continues to expand new sales channels to grow its customer base and increase its revenues. We will continuously devote ourselves to deliver the optimal returns to our shareholders in the future."
| Third Quarter 2015 Financial Results |
|||||
| Revenue and Gross Profit |
Stated in US Dollars |
||||
| 3Q15 |
3Q14 |
Y-O-Y% |
|||
| Revenue |
47,681,598 |
55,264,211 |
-13.72% |
||
| Gross Profit |
8,290,041 |
9,156,591 |
-9.46% |
||
| Gross Margin |
17.39% |
16.57% |
0.82% |
||
Revenue for the three months ended September 30, 2015 dropped by $7.58 million, or 13.72%, as compared to the three months ended September 30, 2014, it is principally as a result of a question raised by CTCPA, with respect to the origin of canned chestnuts sold by Conserverie Minerve ("Minerve") and Minerve chestnuts come from a Chinese cultivar, while CTCPA stated that only chestnuts based on the European or Japanese cultivars can be used in canned chestnut products sold in France according to CTCPA policies. The Company has since shipped chestnuts based on the Japanese cultivar grown in China to Minerve.
Gross Margin was 17.39% for the three months ended September 30, 2015 as compared to 16.57% for the same period of 2014, it was primarily due to the fact that higher-margin products contributed more revenue in current quarter than in the same period of last year.
| Operating Income/Expenses |
Stated in US Dollars |
||||
| 3Q15 |
3Q14 |
Y-O-Y% |
|||
| Operating Expenses |
4,224,141 |
6,406,721 |
-34.07% |
||
| Operating Income |
4,065,900 |
2,749,870 |
47.86% |
||
| Operating Margin |
8.53% |
4.98% |
3.55% |
||
| Selling and |
1,875,739 |
3,044,877 |
-38.40% |
||
| General and |
2,348,402 |
3,361,844 |
-30.15% |
||
| 4,224,141 |
6,406,721 |
-34.07% |
|||
Selling and Marketing Expenses. Our selling and marketing expenses decreased by approximately $1.17 million, or 38.40%, to $1.88 million for the three months ended September 30, 2015. The overall decrease was mainly due to the decrease of personnel costs and transportation costs, which was in line with the decline of net revenue. Management actively worked to control sales related expenses in accordance with market and sales conditions.
General and Administrative Expenses. Our general and administrative expenses decreased by approximately $1.01 million, or 30.15%, to $2.35 million for the three months ended September 30, 2015. As our revenues decreased, we prepared our budget to strictly control our expenses incurred. The main items leading to the decrease of our expenses are our staff welfare expense and office supply expense.
The operating income increased by 47.86%, or $1.32 million, to approximately $4.07 million YOY. It was mainly due to the fact that the operating expense dropped by approximately 34.07% YOY to 4.22 million for the three months ended September 30, 2015.
Net Income
Net income increased by approximately $1.15 million, or 157.24%, to $1.88 million for the three months ended September 30, 2015. The increase was attributable to decrease of operating expenses in the three months ended September 30, 2015 as compared to the three months ended September 30, 2014.
As of September 30, 2015, we had cash and cash equivalents of approximately $31.1 million. The Company's total current assets as of September 30, 2015, were $197.4 million and total current liabilities were $105.4 million, which resulted in a positive net working capital of $92.0 million.
| AMERICAN LORAIN CORPORATION |
||||||
| UNAUDITED CONSOLIDATED BALANCE SHEETS |
||||||
| AT SEPTEMBER 30, 2015 AND DECEMBER 31, 2014 |
||||||
| (Stated in US Dollars) |
||||||
| (Audited) |
||||||
| At September 30, |
At December 31, |
|||||
| ASSETS |
2015 |
2014 |
||||
| Current assets |
||||||
| Cash and cash equivalents |
$ |
31,145,108 |
$ |
30,279,988 |
||
| Restricted cash |
14,262,450 |
4,195,114 |
||||
| Trade accounts receivable |
41,142,978 |
58,806,466 |
||||
| Other receivables |
12,670,630 |
8,183,485 |
||||
| Inventory |
58,002,702 |
51,648,160 |
||||
| Advance to suppliers |
33,473,757 |
42,479,437 |
||||
| Prepaid expenses and taxes |
2,887,635 |
2,758,334 |
||||
| Security deposits and other assets |
3,821,959 |
3,578,514 |
||||
| Total current assets |
$ |
197,407,219 |
$ |
201,929,498 |
||
| Non-current assets |
||||||
| Investment |
3,284,719 |
3,258,125 |
||||
| Property, plant and equipment, net |
84,823,722 |
89,148,530 |
||||
| Construction in Progress, net |
13,866,188 |
14,340,145 |
||||
| Intangible assets, net |
16,652,212 |
17,537,868 |
||||
| Goodwill |
9,955,983 |
10,327,553 |
||||
| TOTAL ASSETS |
$ |
325,990,043 |
$ |
336,541,719 |
||
| LIABILITIES AND STOCKHOLDERS' EQUITY |
||||||
| Current liabilities |
||||||
| Short-term bank loans |
$ |
36,839,015 |
$ |
41,645,100 |
||
| Notes payable |
3,053,465 |
6,005,430 |
||||
| Convertible promissory note |
- |
3,500,000 |
||||
| Long-term debt – current portion |
34,925,487 |
19,226,094 |
||||
| Accounts payable |
18,680,167 |
10,071,009 |
||||
| Taxes payable |
3,511,059 |
4,320,470 |
||||
| Accrued liabilities and other payables |
5,655,640 |
4,153,054 |
||||
| Related party payable |
1,809,493 |
2,433,300 |
||||
| Deferred tax liabilities |
19,204 |
70,545 |
||||
| Customers deposits |
412,954 |
61,428 |
||||
| Capital lease – current portion |
465,916 |
- |
||||
| Total current liabilities |
$ |
105,372,400 |
$ |
91,486,430 |
||
| AMERICAN LORAIN CORPORATION |
||||||
| UNAUDITED CONSOLIDATED BALANCE SHEETS |
||||||
| AT SEPTEMBER 30, 2015 AND DECEMBER 31, 2014 |
||||||
| (Stated in US Dollars) |
||||||
| (Audited) |
||||||
| At September 30, |
At December 31, |
|||||
| 2015 |
2014 |
|||||
| Long-term liabilities |
||||||
| Long-term bank loans |
567,112 |
2,707,587 |
||||
| Notes payable and debenture |
11,009,160 |
32,581,249 |
||||
| Capital lease |
831,595 |
- |
||||
| TOTAL LIABILITIES |
$ |
117,780,267 |
$ |
126,775,266 |
||
| COMMITMENTS AND CONTINGENCIES |
||||||
| STOCKHOLDERS' EQUITY |
||||||
| Preferred Stock, $0.001 par value, 5,000,000 shares authorized; 0 shares issued and outstanding at |
- |
- |
||||
| Common Stock, $0.001 par value, 200,000,000 shares authorized; 38,259,490 shares and 34,916,714 shares |
38,259 |
34,917 |
||||
| Additional paid-in capital |
57,844,419 |
53,853,089 |
||||
| Statutory reserves |
23,038,917 |
23,038,917 |
||||
| Retained earnings |
100,340,007 |
99,021,555 |
||||
| Accumulated other comprehensive income |
15,838,394 |
20,796,420 |
||||
| Non-controlling interests |
11,109,780 |
13,021,555 |
||||
| TOTAL STOCKHOLDER'S EQUITY |
$ |
208,209,776 |
$ |
209,766,453 |
||
| TOTAL LIABILITIES AND STOCKHOLDER'S EQUITY |
$ |
325,990,043 |
$ |
336,541,719 |
||
| AMERICAN LORAIN CORPORATION |
||||||||||||
| UNAUDITED CONSOLIDATED STATEMENTS OF INCOME |
||||||||||||
| AND COMPREHENSIVE INCOME |
||||||||||||
| FOR THE THREE AND NINE MONTHS PERIOD ENDED SEPTEMBER 30, 2015 AND 2014 |
||||||||||||
| (Stated in US Dollars) |
||||||||||||
| For the three months period |
For the nine months period |
|||||||||||
| ended September 30, |
ended September 30, |
|||||||||||
| 2015 |
2014 |
2015 |
2014 |
|||||||||
| Net revenues |
$ |
47,681,598 |
$ |
55,264,211 |
$ |
120,786,813 |
$ |
119,469,809 |
||||
| Cost of revenues |
39,391,557 |
46,107,620 |
101,073,478 |
96,582,685 |
||||||||
| Gross profit |
$ |
8,290,041 |
$ |
9,156,591 |
$ |
19,713,335 |
$ |
22,887,124 |
||||
| Operating expenses |
||||||||||||
| Selling and marketing expenses |
1,875,739 |
3,044,877 |
5,037,527 |
5,783,319 |
||||||||
| General and administrative expenses |
2,348,402 |
3,361,844 |
9,530,701 |
6,756,226 |
||||||||
| 4,224,141 |
6,406,721 |
14,568,228 |
12,539,545 |
|||||||||
| Operating income |
$ |
4,065,900 |
$ |
2,749,870 |
$ |
5,145,107 |
$ |
10,347,579 |
||||
| Government subsidy income |
941,545 |
401,443 |
1,947,630 |
2,209,814 |
||||||||
| Interest income |
116,451 |
94,186 |
391,056 |
151,510 |
||||||||
| Other income |
87,371 |
779,644 |
649,045 |
935,198 |
||||||||
| Other expenses |
(347,684) |
(74,946) |
(850,313) |
(220,456) |
||||||||
| Interest expense |
(2,017,820) |
(2,553,415) |
(5,620,812) |
(6,332,249) |
||||||||
| Earnings/(loss) before tax |
$ |
2,845,763 |
$ |
1,396,782 |
$ |
1,661,713 |
$ |
7,091,396 |
||||
| Income tax |
(967,650) |
(666,673) |
(2,255,036) |
(2,378,889) |
||||||||
| Net income/(loss) |
$ |
1,878,113 |
$ |
730,109 |
$ |
(593,323) |
$ |
4,712,507 |
||||
| Other comprehensive income/(loss): |
||||||||||||
| Foreign currency translation gain/(loss) |
(6,063,073) |
82,660 |
(4,958,027) |
(2,020,740) |
||||||||
| Comprehensive Income/(Loss) |
(4,184,960) |
812,769 |
(5,551,350) |
2,691,767 |
||||||||
| Net income/(loss) attributable to: |
||||||||||||
| -Common stockholders |
$ |
2,263,262 |
$ |
1,179,001 |
$ |
1,318,452 |
$ |
4,909,926 |
||||
| -Non-controlling interest |
(385,149) |
(448,892) |
(1,911,775) |
(197,419) |
||||||||
| $ |
1,878,113 |
$ |
730,109 |
$ |
(593,323) |
$ |
4,712,507 |
|||||
| Earnings/(loss) per share |
||||||||||||
| - Basic |
$ |
0.06 |
$ |
0.03 |
$ |
0.04 |
$ |
0.14 |
||||
| - Diluted |
$ |
0.06 |
$ |
0.03 |
$ |
0.04 |
$ |
0.14 |
||||
| Weighted average shares outstanding |
||||||||||||
| - Basic |
38,259,490 |
34,745,285 |
36,727,504 |
34,873,699 |
||||||||
| - Diluted |
38,259,490 |
34,745,285 |
36,727,504 |
34,873,699 |
||||||||
| AMERICAN LORAIN CORPORATION |
||||||||||||
| UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOW |
||||||||||||
| FOR THE THREE AND NINE MONTHS PERIOD ENDED SEPTEMBER 30, 2015 AND 2014 |
||||||||||||
| (Stated in US Dollars) |
||||||||||||
| For the three months period |
For the nine months period |
|||||||||||
| ended September 30, |
ended September 30, |
|||||||||||
| 2015 |
2014 |
2015 |
2014 |
|||||||||
| Cash flows from operating activities |
||||||||||||
| Net income |
1,878,113 |
730,109 |
(593,323) |
4,712,507 |
||||||||
| Stock compensation expense |
- |
366,000 |
987,500 |
366,000 |
||||||||
| Depreciation of fixed assets |
1,023,350 |
1,093,167 |
3,037,385 |
2,926,095 |
||||||||
| Amortization of intangible assets |
97,727 |
485,916 |
289,497 |
672,370 |
||||||||
| (Increase)/decrease in accounts and other receivables |
(12,837,631) |
(17,077,118) |
11,063,323 |
2,262,344 |
||||||||
| (Increase)/decrease in inventories |
8,567,805 |
(15,298,226) |
(1,034,711) |
(35,514,753) |
||||||||
| Decrease/(increase) in prepayment |
(96,065) |
(178,964) |
(230,948) |
(2,488,951) |
||||||||
| Decrease/(increase) in deferred tax asset |
(12,351) |
(52) |
(38,327) |
1,263 |
||||||||
| Increase/(decrease) in accounts and other payables |
7,629,986 |
27,357,598 |
12,887,010 |
28,019,912 |
||||||||
| Increase/(decrease) in related party payable |
40,442 |
- |
(397,660) |
- |
||||||||
| Net cash (used in)/provided by operating activities |
6,291,376 |
(2,521,570) |
25,969,746 |
956,787 |
||||||||
| Cash flows from investing activities |
||||||||||||
| Payment for acquisition of Athena Group |
- |
2,100,000 |
- |
- |
||||||||
| Purchase of plant and equipment |
(1,512,795) |
(5,152,779) |
(1,905,906) |
(6,167,956) |
||||||||
| Disposal/(Purchase) of intangible assets |
444 |
(2,064,247) |
(56,813) |
(1,935,326) |
||||||||
| (Increase)/decrease in restricted cash |
(4,655,012) |
198,008 |
(10,529,664) |
(2,444,287) |
||||||||
| (Increase)/decrease in deposit |
(62,971) |
(8,427,528) |
(606,921) |
(8,403,929) |
||||||||
| Sales of investments |
(159,615) |
- |
- |
- |
||||||||
| Net cash used in investing activities |
(6,389,949) |
(13,346,546) |
(13,099,304) |
(18,951,498) |
||||||||
| Cash flows from financing activities |
||||||||||||
| Repayment of bank borrowings |
(4,241,287) |
(505,914) |
(7,731,253) |
(8,970,772) |
||||||||
| Proceeds from bank borrowings and debentures |
12,257,115 |
7,563,144 |
16,388,949 |
21,867,129 |
||||||||
| (Repayment)/proceeds of long-term borrowings and notes payable |
(14,225,110) |
4,605,638 |
(21,109,957) |
11,354,924 |
||||||||
| Net cash provided by/(used in) financing activities |
$ |
(6,209,282) |
$ |
11,662,868 |
$ |
(12,452,261) |
$ |
24,251,281 |
||||
| Net Increase/(decrease) of cash and cash equivalents |
(6,307,855) |
(4,205,248) |
418,181 |
6,256,570 |
||||||||
| Effect of foreign currency translation on cash and cash equivalents |
185,641 |
2,777,136 |
446,939 |
673,737 |
||||||||
| Cash and cash equivalents–beginning of period |
37,267,322 |
42,215,612 |
30,279,988 |
33,857,193 |
||||||||
| Cash and cash equivalents–end of period |
$ |
31,145,108 |
$ |
40,787,500 |
$ |
31,145,108 |
$ |
40,787,500 |
||||
| Supplementary cash flow information: |
||||||||||||
| Interest received |
$ |
116,451 |
$ |
94,186 |
$ |
391,056 |
$ |
151,510 |
||||
| Interest paid |
$ |
554,080 |
$ |
1,482,803 |
$ |
2,815,173 |
$ |
3,243,753 |
||||
| Income taxes paid |
$ |
788,965 |
$ |
961,838 |
$ |
1,973,428 |
$ |
4,003,028 |
||||
About American Lorain Corporation
American Lorain Corporation (NYSE:ALN) is China's leading chestnut, convenience food product and frozen food product manufacturer. The company currently has 8 world-class production facilities in China and Europe, which can supply more than 200 kinds of product categories. For domestic trade, it has more than thirty offices, with its sales network covers large cities, medium-size cities and coastal open cities all over China. Regarding to international trade, the products are exported to more than 20 countries and regions, such as Japan, South Korea, Taiwan, Southeast Asia and Europe, which makes our company enjoys a high reputation in the international market. For more information on American Lorain Corporation, please visit: http://en.usalr.cn/index.html
Forward Looking Statements
This news release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and as defined in the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates" and similar statements. All statements other than statements of historical fact in this press release are forward-looking statements and involve certain risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. These forward-looking statements are based on management's current expectations, assumptions, estimates and projections about the Company and the industry in which the Company operates, but involve a number of unknown risks and uncertainties. Further information regarding these and other risks is included in the Company's filings with the U.S. Securities and Exchange Commission. The Company undertakes no obligation to update forward-looking statements to reflect subsequent occurring events or circumstances, or changes in its expectations, except as may be required by law. Although the Company believes that the expectations expressed in these forward looking statements are reasonable, it cannot assure you that such expectations will turn out to be correct, and actual results may differ materially from the anticipated results. You are urged to consider these factors carefully in evaluating the forward-looking statements contained herein and are cautioned not to place undue reliance on such forward-looking statements, which are qualified in their entirety by these cautionary statements.
Contact:
Johnny Zhou
Tel.: +86 13917303401
E-mail: [email protected]
SOURCE American Lorain Corporation
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