American Lorain Corporation Reports 2011 Year-end Financial Results

JUNAN COUNTY, China, March 30, 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 year ended December 31, 2011.

Full-year 2011 Financial Highlights

• Total revenues of $213.2 million, an increase of 15.8% from the prior year
• Total gross profit of $45.0 million, an increase of 7.5% from the prior year
• Net income attributable to common stockholders was $19.9 million, an increase of 11.5% year-over-year
• Diluted earnings per share of $0.57 compared to $0.55 in the prior year

American Lorain's Chairman and CEO, Mr. Si Chen, stated, "We are very pleased with our growth during the year ended December 31, 2011.  We have continued to benefit from our existing long-term supplier and customer relationships, and continued to make diligent efforts for consumer acceptance of products.  Despite the uncertain global economic environment and a very stringent credit environment in 2011, we have remained growing and profitable. American Lorain maintains a growing and diverse network of customers throughout 26 provinces in China and 42 countries around the world. We continued to expand our brand name throughout China, and improved sales domestically by 16.3% during 2011.  In 2011, 73.7% of the Company's sales were generated domestically through our network of distribution channels and relations, and 26.3% through international sales, primarily in the Asia-pacific region. Despite the earthquake Japan experienced in the first quarter of 2011, it remains our largest and most important export market, with revenue contribution from Japan increased from 10.7% in 2010 to 13.0% in 2011. 

2011 Operations and Market Overview

American Lorain's sales of chestnuts increased by 9.0% to $110.3 million, and represented approximately 51.7% of the Company's total revenues, as compared with 54.9% over the same period of last year.  This growth was largely due to increased marketing efforts of the Company's 50+ varieties of chestnut products such as sweetheart chestnuts and chestnut in syrup, as well as the increase in chestnut retail prices.  Sales of chestnuts were particularly strong during the fourth quarter, which has historically been the Company's strongest quarter due to the seasonality of chestnuts.

Convenience foods remained American Lorain's fastest growing business segment, improving to $72.9 million (up 28.4%) for the year.  Products in American Lorain's convenience foods product line include 'ready to cook' foods such as French fries, 'ready to eat' foods such as snack beans and pickle vegetables, and 'meals ready to eat' which are microwavable lunch box entrees or packaged foods with self-heating devices for military personnel.  For 2011, this segment represented 34.2% of the Company's total sales as compared with 30.8% over the same period of last year, and the Company expects this segment to continue to grow the fastest of its three business lines. 

American Lorain's frozen food segment contributed an increase of 14.5% to $30.1 million in 2011 from $26.3 million in 2010, representing 14.1% of the total revenue as compared with 14.3% over the same period of last year.  The Company expects the frozen food segment continues steady growth, although at a slower rate compared with the convenience food segment.

2011 Year End Financial Review

• For the year ended December 31, 2011, the Company reported revenues of $213.2 million, an increase of 15.8% compared to $184.2 million in the prior year.
• Gross profit increased 7.5% to $45.0 million from $41.9 million in the prior year.  Gross margin was 21.1% for the year ended December 31, 2011, compared with 22.7% in full-year 2010, due to increase in raw material prices as well as increased manufacturing costs such as labor and utility.
• Income from operations for the year was $27.9 million, an increase of 1.4% from $27.5 million reported in the prior year.  Operating margin for 2011 was 13.1% compared with 14.9% for the prior year.
• The Company reported net income for the year ended December 31, 2011, of $19.9 million, or $0.57 per diluted share based on 34.7 million weighted average diluted shares outstanding, compared with net income of $17.8 million, or $0.55 per diluted share based on 32.2 million diluted shares outstanding, in the prior year.

Balance Sheet Highlights and Financial Position

At December 31, 2011, American Lorain's cash and cash equivalents (excluding $13.0 million in restricted cash) were $17.4 million, working capital was $82.3 million, total liabilities was $61.7 million, and stockholders' equity was $156.9 million, compared to $12.7 million, $57.4 million, $45.6 million, and $129.3 million, respectively, at December 31, 2010.  

The Company currently has a book value per share at December 31, 2011 of $4.55.

Outlook for 2012

Mr. Chen concluded, "We are optimistic about the outlook of our market growth in China and abroad because of growing demand, improving brand recognition, balanced supply, and a potentially easing credit environment.  During 2011 and into 2012, our core strategy was to continue building our brand recognition in China through consistent marketing efforts towards supermarkets, wholesalers, and significant customers, enhancing the cooperation with other manufacturers and factories, and enhancing the turnover for our existing chestnut, convenience and frozen food products. We believe a persistent focus on these strategies will enable us to achieve a solid growth in 2012 and beyond." 

Conference Call

The Company will also discuss these results in a conference call on April 2, 2012 at 8:00 a.m. ET.

Participant Dial-In Numbers:

A recorded replay of the call will be available until 11:59 PM Eastern Time on April 5, 2012.  Listeners may dial 877-660-6853 (Domestic) or 201-612-7415 (International) and use the account # 286 and conference ID # 391462 for the replay.  The call will also be simultaneously broadcast over the Internet. To listen to the live webcast, please go to www.americanlorain.com and click on the conference call link, or go directly to: http://www.investorcalendar.com/IC/CEPage.asp?ID=167866 .

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
[email protected]
http://www.americanlorain.com

SOURCE American Lorain Corporation

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